PennyMac Financial Services (NYSE:PFSI) Sets New 12-Month High After Strong Earnings

Key Points

• PennyMac Financial Services reached a new 52-week high after reporting earnings of $3.37 per share, exceeding analyst expectations of $2.98.
• The company declared a quarterly dividend of $0.30, with an annualized yield of 0.9%, as part of its earnings announcement.
• Analysts have varied ratings on PennyMac, with price targets ranging from $129.00 to $139.00, reflecting a consensus rating of "Moderate Buy."

PennyMac Financial Services, Inc. (NYSE:PFSI - Get Free Report) shares hit a new 52-week high during trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $134.56 and last traded at $128.80, with a volume of 166347 shares changing hands. The stock had previously closed at $120.91.

The real estate investment trust reported $3.37 earnings per share for the quarter, topping analysts' consensus estimates of $2.98 by $0.39. The company had revenue of $632.90 million for the quarter, compared to analyst estimates of $573.46 million. PennyMac Financial Services had a net margin of 22.00% and a return on equity of 12.18%. The firm's revenue for the quarter was up 53.7% on a year-over-year basis. During the same period in the prior year, the company posted $1.30 EPS.

PennyMac Financial Services Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, November 26th. Stockholders of record on Monday, November 17th will be issued a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Monday, November 17th. PennyMac Financial Services's dividend payout ratio (DPR) is currently 16.64%.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the stock. Keefe, Bruyette & Woods cut shares of PennyMac Financial Services from an "outperform" rating to a "market perform" rating and set a $129.00 target price for the company. in a research note on Tuesday, October 7th. Piper Sandler raised their price objective on PennyMac Financial Services from $121.00 to $136.00 and gave the company an "overweight" rating in a report on Wednesday, October 8th. UBS Group boosted their price target on shares of PennyMac Financial Services from $110.00 to $135.00 and gave the stock a "neutral" rating in a report on Friday, October 10th. Barclays set a $139.00 target price on shares of PennyMac Financial Services in a research note on Wednesday. Finally, Zacks Research raised shares of PennyMac Financial Services from a "strong sell" rating to a "hold" rating in a research note on Monday, October 6th. Four investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $134.00.

Insider Buying and Selling

In related news, CFO Daniel Stanley Perotti sold 2,925 shares of the stock in a transaction on Friday, September 5th. The stock was sold at an average price of $116.63, for a total transaction of $341,142.75. Following the completion of the sale, the chief financial officer directly owned 225,250 shares of the company's stock, valued at $26,270,907.50. This trade represents a 1.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Derek Stark sold 4,750 shares of the stock in a transaction on 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 owned 20,621 shares of the company's stock, valued at $2,259,236.76. The trade was a 18.72% decrease in their position. The disclosure for this sale can be found here. Insiders sold 35,632 shares of company stock valued at $3,998,816 in the last ninety days. Company insiders own 15.80% of the company's stock.

Hedge Funds Weigh In On PennyMac Financial Services

Several hedge funds and other institutional investors have recently modified their holdings of the company. EverSource Wealth Advisors LLC acquired a new position in PennyMac Financial Services during the 2nd quarter worth approximately $26,000. CWM LLC increased its holdings in shares of PennyMac Financial Services by 71.5% in the 1st quarter. CWM LLC now owns 271 shares of the real estate investment trust's stock valued at $27,000 after acquiring an additional 113 shares during the last quarter. Strs Ohio bought a new position in PennyMac Financial Services during the 1st quarter worth $30,000. Bayforest Capital Ltd bought a new position in PennyMac Financial Services during the 2nd quarter worth $62,000. Finally, Harbor Capital Advisors Inc. grew its stake in PennyMac Financial Services by 26.3% during the 3rd quarter. Harbor Capital Advisors Inc. now owns 504 shares of the real estate investment trust's stock worth $62,000 after buying an additional 105 shares during the last quarter. 57.87% of the stock is owned by institutional investors and hedge funds.

PennyMac Financial Services Stock Up 5.3%

The company has a current ratio of 0.34, a quick ratio of 0.34 and a debt-to-equity ratio of 3.03. The stock has a 50-day simple moving average of $117.19 and a 200-day simple moving average of $104.18. The company has a market cap of $6.59 billion, a price-to-earnings ratio of 17.67 and a beta of 1.59.

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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