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

Key Points

• Shares hit a new 52-week low, trading as low as $82.65 (last $85.72) on Friday, with the 50‑day and 200‑day moving averages at $102.84 and $119.51, indicating downward momentum.
• PennyMac missed quarterly expectations, reporting EPS of $1.97 vs. $3.23 expected and revenue of $538.01M vs. $639.81M expected, though revenue was up 14.4% year‑over‑year.
• Analysts are mixed: the consensus rating is a Moderate Buy with a consensus price target of $139.71, but several firms have recently trimmed price targets and adjusted ratings lower.

Shares of PennyMac Financial Services, Inc. (NYSE:PFSI - Get Free Report) hit a new 52-week low during trading on Friday . The company traded as low as $82.65 and last traded at $85.72, with a volume of 5911 shares traded. The stock had previously closed at $86.44.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on PFSI shares. Wall Street Zen lowered shares of PennyMac Financial Services from a "buy" rating to a "hold" rating in a report on Sunday, January 18th. Piper Sandler cut their price target on shares of PennyMac Financial Services from $168.00 to $137.00 and set an "overweight" rating for the company in a report on Friday, January 30th. Jefferies Financial Group started coverage on shares of PennyMac Financial Services in a research report on Friday, December 19th. They set a "buy" rating and a $160.00 price target on the stock. BTIG Research reiterated a "buy" rating on shares of PennyMac Financial Services in a report on Friday, January 30th. Finally, Wells Fargo & Company lowered their price objective on PennyMac Financial Services from $150.00 to $135.00 and set an "overweight" rating for the company in a research report on Friday, January 30th. Six equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $139.71.

PennyMac Financial Services Price Performance

The company has a quick ratio of 0.34, a current ratio of 0.34 and a debt-to-equity ratio of 3.32. The company has a market cap of $4.51 billion, a price-to-earnings ratio of 9.27, a PEG ratio of 0.49 and a beta of 1.56. The stock's 50-day simple moving average is $102.84 and its 200 day simple moving average is $119.51.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last announced its quarterly earnings results on Thursday, January 29th. The real estate investment trust reported $1.97 earnings per share for the quarter, missing analysts' consensus estimates of $3.23 by ($1.26). PennyMac Financial Services had a net margin of 24.48% and a return on equity of 10.20%. The company had revenue of $538.01 million for the quarter, compared to analyst estimates of $639.81 million. During the same quarter in the prior year, the business earned $1.95 earnings per share. PennyMac Financial Services's revenue was up 14.4% on a year-over-year basis. On average, equities research analysts anticipate that PennyMac Financial Services, Inc. will post 13.77 EPS for the current fiscal year.

PennyMac Financial Services Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, February 26th. Shareholders of record on Monday, February 16th were given a $0.30 dividend. The ex-dividend date of this dividend was Friday, February 13th. This represents a $1.20 dividend on an annualized basis and a yield of 1.4%. PennyMac Financial Services's payout ratio is presently 12.90%.

Insider Transactions at PennyMac Financial Services

In other news, CFO Daniel Stanley Perotti sold 2,925 shares of the firm's stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $93.30, for a total transaction of $272,902.50. Following the completion of the transaction, the chief financial officer directly owned 213,550 shares in the company, valued at $19,924,215. This trade represents a 1.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Patrick Kinsella acquired 2,250 shares of the company's stock in a transaction dated Thursday, February 12th. The stock was purchased at an average cost of $89.15 per share, with a total value of $200,587.50. Following the completion of the purchase, the director directly owned 34,210 shares of the company's stock, valued at approximately $3,049,821.50. This represents a 7.04% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have sold 51,280 shares of company stock valued at $5,154,453 over the last three months. 15.80% of the stock is currently owned by company insiders.

Institutional Trading of PennyMac Financial Services

Institutional investors and hedge funds have recently bought and sold shares of the business. Caitong International Asset Management Co. Ltd boosted its stake in shares of PennyMac Financial Services by 7,600.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 231 shares of the real estate investment trust's stock valued at $30,000 after purchasing an additional 228 shares during the period. Los Angeles Capital Management LLC purchased a new stake in PennyMac Financial Services during the 4th quarter worth approximately $31,000. EverSource Wealth Advisors LLC purchased a new stake in PennyMac Financial Services during the 2nd quarter worth approximately $26,000. GAMMA Investing LLC lifted its holdings in PennyMac Financial Services by 97.3% during the 4th quarter. GAMMA Investing LLC now owns 288 shares of the real estate investment trust's stock worth $38,000 after buying an additional 142 shares in the last quarter. Finally, Strs Ohio purchased a new position in PennyMac Financial Services in the 1st quarter valued at approximately $30,000. 57.87% of the stock is currently owned by hedge funds and other institutional investors.

About PennyMac Financial Services

PennyMac Financial Services, Inc NYSE: PFSI is a leading mortgage banking company based in Westlake Village, California. The firm operates through two primary business segments: Production and Mortgage Servicing Rights (MSR). In its Production segment, PennyMac originates residential mortgage loans through retail, wholesale and correspondent channels, focusing on both purchase and refinance transactions. The MSR segment involves the acquisition and servicing of mortgage loans, whereby the company earns fees for managing loan portfolios on behalf of investors.

Since its founding in 2008, PennyMac has grown through a combination of organic origination and strategic acquisition of servicing rights, positioning itself as one of the largest residential mortgage loan servicers in the United States.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.