PennyMac Financial Services (NYSE:PFSI) Reaches New 1-Year High - Time to Buy?

Key Points

• PennyMac Financial Services' stock reached a new 52-week high, trading at $124.07 during the day, before closing at $120.32, with trading volume exceeding 413,000 shares.
• Wall Street analysts have varied views, with five analysts rating the stock as a Buy, while the company has a current consensus target price of $119.33.
• The company reported earnings per share of $1.02 for the last quarter, significantly missing estimates, and also declared a quarterly dividend of $0.30 per share.

PennyMac Financial Services, Inc. (NYSE:PFSI - Get Free Report)'s share price hit a new 52-week high during trading on Thursday . The stock traded as high as $124.07 and last traded at $120.32, with a volume of 413313 shares changing hands. The stock had previously closed at $120.82.

Wall Street Analyst Weigh In

Several brokerages have recently commented on PFSI. UBS Group reduced their price objective on PennyMac Financial Services from $115.00 to $110.00 and set a "neutral" rating on the stock in a research report on Thursday, July 24th. Barclays reduced their price objective on PennyMac Financial Services from $124.00 to $119.00 and set an "overweight" rating on the stock in a research report on Tuesday, July 8th. Wells Fargo & Company began coverage on PennyMac Financial Services in a research report on Monday, August 25th. They set an "overweight" rating and a $115.00 price objective on the stock. Piper Sandler reduced their price objective on PennyMac Financial Services from $125.00 to $121.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 23rd. Finally, Wall Street Zen upgraded PennyMac Financial Services from a "sell" rating to a "hold" rating in a research report on Friday, August 22nd. Five investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $119.33.

PennyMac Financial Services Trading Down 0.4%

The firm has a 50-day moving average of $103.90 and a 200-day moving average of $99.95. The company has a debt-to-equity ratio of 3.03, a quick ratio of 0.34 and a current ratio of 0.34. The firm has a market capitalization of $6.22 billion, a P/E ratio of 16.69 and a beta of 1.51.

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

PennyMac Financial Services Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Wednesday, August 13th were given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date was Wednesday, August 13th. PennyMac Financial Services's dividend payout ratio (DPR) is currently 16.64%.

Insiders Place Their Bets

In other news, Director Joseph F. Mazzella sold 7,107 shares of PennyMac Financial Services stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $108.16, for a total value of $768,693.12. Following the sale, the director directly owned 86,050 shares in the company, valued at approximately $9,307,168. This trade represents a 7.63% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Daniel Stanley Perotti sold 2,925 shares of PennyMac Financial Services stock in a transaction that occurred on Friday, September 5th. The stock was sold at an average price of $116.63, for a total value of $341,142.75. Following the completion of the sale, the chief financial officer owned 225,250 shares in the company, valued at approximately $26,270,907.50. This represents a 1.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 30,632 shares of company stock valued at $3,295,916 in the last 90 days. 15.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions 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 during the period. Norges Bank purchased a new position in shares of PennyMac Financial Services in the 2nd quarter valued at approximately $39,976,000. Goldentree Asset Management LP purchased a new position in shares of PennyMac Financial Services in the 2nd quarter valued at approximately $29,249,000. Millennium Management LLC lifted its stake in shares of PennyMac Financial Services by 104.5% in the 4th quarter. Millennium Management LLC now owns 518,574 shares of the real estate investment trust's stock valued at $52,967,000 after purchasing an additional 264,956 shares during the period. Finally, Philadelphia Financial Management of San Francisco LLC purchased a new position in shares of PennyMac Financial Services in the 1st quarter valued at approximately $18,701,000. Hedge funds and other institutional investors own 57.87% of the company's stock.

About PennyMac Financial Services

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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