PennyMac Financial Services (NYSE:PFSI) Hits New 1-Year High - What's Next?

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 stock price reached a new 52-week high during trading on Thursday . The company traded as high as $124.07 and last traded at $120.32, with a volume of 413313 shares trading hands. The stock had previously closed at $120.82.

Analyst Ratings Changes

A number of research firms have commented on PFSI. Barclays reduced their target price 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. Keefe, Bruyette & Woods upped their price objective on PennyMac Financial Services from $117.00 to $121.00 and gave the company an "outperform" rating in a research note on Wednesday, September 3rd. UBS Group reduced their price objective on PennyMac Financial Services from $115.00 to $110.00 and set a "neutral" rating for the company in a research note on Thursday, July 24th. Piper Sandler dropped their target price 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 Saturday. Five research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, PennyMac Financial Services has a consensus rating of "Moderate Buy" and a consensus target price of $119.33.

PennyMac Financial Services Stock Down 0.4%

The firm has a 50 day moving average price of $105.27 and a two-hundred day moving average price of $100.39. The company has a quick ratio of 0.34, a current ratio of 0.34 and a debt-to-equity ratio of 3.03. The company has a market capitalization of $6.40 billion, a price-to-earnings ratio of 17.22 and a beta of 1.51.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last announced its 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). The business had revenue of $444.73 million for the quarter, compared to analyst estimates of $547.44 million. PennyMac Financial Services had a net margin of 22.00% and a return on equity of 12.18%. The firm's revenue was up 9.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.85 earnings per share. As a group, sell-side analysts expect that PennyMac Financial Services, Inc. will post 13.77 earnings per share for the current year.

PennyMac Financial Services Announces Dividend

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

Insider Transactions at PennyMac Financial Services

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 value of $520,410.00. Following the completion of the transaction, the insider directly owned 20,621 shares in the company, valued at approximately $2,259,236.76. This trade represents a 18.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Joseph F. Mazzella sold 7,107 shares of PennyMac Financial Services stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $108.16, for a total value of $768,693.12. Following the completion of the transaction, the director owned 86,050 shares of the company's stock, valued at $9,307,168. This trade represents a 7.63% 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 over the last ninety days. 15.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On PennyMac Financial Services

A number of hedge funds have recently bought and sold shares of the company. T. Rowe Price Investment Management Inc. grew its stake in PennyMac Financial Services by 0.6% in the first quarter. T. Rowe Price Investment Management Inc. now owns 4,289,819 shares of the real estate investment trust's stock worth $429,454,000 after purchasing an additional 24,055 shares in the last quarter. Invesco Ltd. lifted its holdings in PennyMac Financial Services by 4.5% in the first quarter. Invesco Ltd. now owns 1,237,118 shares of the real estate investment trust's stock worth $123,848,000 after acquiring an additional 53,660 shares during the last quarter. Orbis Allan Gray Ltd lifted its holdings in PennyMac Financial Services by 447.5% in the first quarter. Orbis Allan Gray Ltd now owns 926,775 shares of the real estate investment trust's stock worth $92,779,000 after acquiring an additional 757,489 shares during the last quarter. Millennium Management LLC lifted its holdings in PennyMac Financial Services by 48.8% in the first quarter. Millennium Management LLC now owns 771,605 shares of the real estate investment trust's stock worth $77,245,000 after acquiring an additional 253,031 shares during the last quarter. Finally, Geode Capital Management LLC lifted its holdings in PennyMac Financial Services by 6.0% in the second quarter. Geode Capital Management LLC now owns 721,757 shares of the real estate investment trust's stock worth $71,924,000 after acquiring an additional 41,124 shares during the last quarter. 57.87% of the stock is currently owned by institutional investors and hedge funds.

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.