PennyMac Financial Services (NYSE:PFSI) Rating Increased to Hold at Wall Street Zen

Key Points

• PennyMac Financial Services has been upgraded from a "sell" rating to a "hold" rating by Wall Street Zen, indicating a shift in analyst sentiment towards the stock.
• The company's stock price has shown a 6.2% increase, with the current share price opening at $109.76 following recent market activity.
• PennyMac reported disappointing earnings, missing consensus estimates with $1.02 earnings per share against an expectation of $3.01, and revenue of $444.73 million, lower than the anticipated $547.44 million.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a report issued on Friday.

Other equities analysts have also issued reports about the company. Keefe, Bruyette & Woods reduced their price target on PennyMac Financial Services from $121.00 to $117.00 and set an "outperform" rating on the stock in a research report on Thursday, July 24th. Piper Sandler decreased their target price on PennyMac Financial Services from $125.00 to $121.00 and set an "overweight" rating for the company in a research note on Wednesday, July 23rd. Barclays reduced their target price on PennyMac Financial Services from $124.00 to $119.00 and set an "overweight" rating for the company in a report on Tuesday, July 8th. UBS Group reduced their target price on PennyMac Financial Services from $115.00 to $110.00 and set a "neutral" rating for the company in a report on Thursday, July 24th. Finally, Wells Fargo & Company reduced their price objective on PennyMac Financial Services from $120.00 to $115.00 and set an "overweight" rating for the company in a research note on Wednesday, July 23rd. Five investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $118.67.

PennyMac Financial Services Trading Up 0.3%

Shares of NYSE:PFSI traded up $0.33 during trading on Friday, reaching $108.84. 293,322 shares of the stock were exchanged, compared to its average volume of 385,803. The company has a debt-to-equity ratio of 3.03, a quick ratio of 0.34 and a current ratio of 0.34. PennyMac Financial Services has a 12-month low of $85.74 and a 12-month high of $119.13. The firm has a market cap of $5.63 billion, a price-to-earnings ratio of 15.10 and a beta of 1.50. The firm's 50-day moving average price is $100.98 and its 200 day moving average price is $99.09.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last issued its earnings results on Tuesday, July 22nd. The real estate investment trust reported $1.02 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $3.01 by ($1.99). PennyMac Financial Services had a return on equity of 12.18% and a net margin of 22.00%.The firm had revenue of $444.73 million for the quarter, compared to analysts' expectations of $547.44 million. During the same quarter in the previous year, the firm posted $1.85 EPS. The firm's revenue for the quarter was up 9.5% compared to the same quarter last year. On average, sell-side analysts anticipate that PennyMac Financial Services will post 13.77 earnings per share for the current fiscal year.

Insider Activity at PennyMac Financial Services

In other PennyMac Financial Services news, CEO David Spector sold 5,000 shares of the firm's stock in a transaction that occurred on Monday, July 7th. The stock was sold at an average price of $100.81, for a total value of $504,050.00. Following the sale, the chief executive officer owned 135,604 shares of the company's stock, valued at $13,670,239.24. This trade represents a 3.56% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Derek Stark sold 4,750 shares of the firm's stock in a transaction that occurred on Monday, August 25th. The shares were sold at an average price of $109.56, for a total value of $520,410.00. Following the completion of the sale, the insider directly owned 20,621 shares in the company, valued at $2,259,236.76. This trade represents a 18.72% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 26,857 shares of company stock valued at $2,813,253. Corporate insiders own 15.80% of the company's stock.

Institutional Trading of PennyMac Financial Services

Several institutional investors have recently modified their holdings of PFSI. CANADA LIFE ASSURANCE Co lifted its position in shares of PennyMac Financial Services by 4.1% during the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 16,073 shares of the real estate investment trust's stock worth $1,602,000 after buying an additional 626 shares during the period. Tower Research Capital LLC TRC lifted its position in shares of PennyMac Financial Services by 62.8% during the 2nd quarter. Tower Research Capital LLC TRC now owns 4,236 shares of the real estate investment trust's stock worth $422,000 after buying an additional 1,634 shares during the period. Conversant Capital LLC lifted its position in shares of PennyMac Financial Services by 8.9% during the 2nd quarter. Conversant Capital LLC now owns 266,000 shares of the real estate investment trust's stock worth $26,504,000 after buying an additional 21,850 shares during the period. Holocene Advisors LP bought a new position in shares of PennyMac Financial Services during the 2nd quarter worth approximately $986,000. Finally, BNP Paribas Financial Markets lifted its position in shares of PennyMac Financial Services by 629.3% during the 2nd quarter. BNP Paribas Financial Markets now owns 30,814 shares of the real estate investment trust's stock worth $3,070,000 after buying an additional 26,589 shares during the period. Institutional investors and hedge funds own 57.87% of the company's stock.

PennyMac Financial Services Company Profile

PennyMac Financial Services, Inc, through its subsidiaries, engages in the mortgage banking and investment management activities in the United States. The company operates through three segments: Production, Servicing, and Investment Management. The Production segment is involved in the origination, acquisition, and sale of loans.