PennyMac Financial Services (NYSE:PFSI) Raised to "Hold" at Zacks Research

Key Points

• Analysts at Zacks Research upgraded PennyMac Financial Services from a "strong sell" to a "hold" rating, indicating a potential stabilization in their stock outlook.
• Despite the rating upgrades, UBS Group lowered their target price from $115.00 to $110.00, highlighting mixed sentiments among analysts regarding PennyMac's performance.
• Insider transactions revealed significant stock sales, with CEO David Spector selling 5,000 shares, raising questions about insider confidence in the company's future performance.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) was upgraded by analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a note issued to investors on Monday,Zacks.com reports.

A number of other equities research analysts also recently commented on the company. 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. Keefe, Bruyette & Woods downgraded PennyMac Financial Services from an "outperform" rating to a "market perform" rating and set a $129.00 target price for the company. in a report on Tuesday. Wall Street Zen raised PennyMac Financial Services from a "sell" rating to a "hold" rating in a report on Monday, September 29th. Barclays raised their target price on PennyMac Financial Services from $119.00 to $136.00 and gave the company an "overweight" rating in a report on Monday. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of PennyMac Financial Services in a report on Saturday, September 27th. Four equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, PennyMac Financial Services currently has an average rating of "Moderate Buy" and an average target price of $123.50.

PennyMac Financial Services Price Performance

Shares of NYSE PFSI opened at $116.77 on Monday. The company has a debt-to-equity ratio of 3.03, a current ratio of 0.34 and a quick ratio of 0.34. The stock has a fifty day moving average price of $113.06 and a 200 day moving average price of $103.04. PennyMac Financial Services has a 1-year low of $85.74 and a 1-year high of $130.02. The company has a market cap of $6.04 billion, a PE ratio of 16.20 and a beta of 1.59.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last issued its quarterly earnings results on Tuesday, July 22nd. The real estate investment trust reported $1.02 earnings per share for the quarter, missing the consensus estimate 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 company had revenue of $444.73 million for the quarter, compared to analyst estimates of $547.44 million. During the same period in the prior year, the business earned $1.85 earnings per share. PennyMac Financial Services's revenue for the quarter was up 9.5% compared to the same quarter last year. Sell-side analysts forecast that PennyMac Financial Services will post 13.77 EPS for the current year.

Insider Buying and Selling

In related news, insider Derek Stark sold 4,750 shares of PennyMac Financial Services stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $109.56, for a total transaction of $520,410.00. Following the completion of the sale, the insider owned 20,621 shares in the company, valued at approximately $2,259,236.76. This trade represents a 18.72% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO David Spector sold 5,000 shares of PennyMac Financial Services stock in a transaction dated Monday, October 6th. The stock was sold at an average price of $118.42, for a total value of $592,100.00. Following the sale, the chief executive officer owned 120,604 shares of the company's stock, valued at approximately $14,281,925.68. This represents a 3.98% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 35,632 shares of company stock worth $3,998,816. 15.80% of the stock is owned by company insiders.

Institutional Trading of PennyMac Financial Services

Several hedge funds and other institutional investors have recently added to or reduced their stakes in PFSI. Orbis Allan Gray Ltd lifted its stake in shares of PennyMac Financial Services by 447.5% in the 1st quarter. Orbis Allan Gray Ltd now owns 926,775 shares of the real estate investment trust's stock valued at $92,779,000 after purchasing an additional 757,489 shares in the last quarter. Norges Bank acquired a new position in shares of PennyMac Financial Services in the 2nd quarter valued at about $39,976,000. Goldentree Asset Management LP acquired a new position in shares of PennyMac Financial Services in the 2nd quarter valued at about $29,249,000. Millennium Management LLC lifted its stake in shares of PennyMac Financial Services by 48.8% in the 1st quarter. Millennium Management LLC now owns 771,605 shares of the real estate investment trust's stock valued at $77,245,000 after purchasing an additional 253,031 shares in the last quarter. Finally, Philadelphia Financial Management of San Francisco LLC acquired a new position in shares of PennyMac Financial Services in the 1st quarter valued at about $18,701,000. Hedge funds and other institutional investors 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.

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