PennyMac Financial Services (NYSE:PFSI) Rating Lowered to "Sell" at Wall Street Zen

Key Points

• PennyMac Financial Services was downgraded from a "hold" to a "sell" rating by Wall Street Zen in a recent report.
• The company's stock price target has been lowered by several analysts, with Wells Fargo reducing it from $120 to $115, and UBS Group from $115 to $110.
• PennyMac Financial Services reported $1.02 earnings per share for the last quarter, significantly missing analyst expectations of $3.01.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued on Saturday.

Several other research analysts also recently issued reports on the company. Piper Sandler lowered their price objective on PennyMac Financial Services from $125.00 to $121.00 and set an "overweight" rating for the company in a research note on Wednesday, July 23rd. Barclays lowered their price objective on PennyMac Financial Services from $124.00 to $119.00 and set an "overweight" rating for the company in a research note on Tuesday, July 8th. Keefe, Bruyette & Woods lowered their price objective on PennyMac Financial Services from $121.00 to $117.00 and set an "outperform" rating for the company in a research note on Thursday, July 24th. UBS Group reduced their price target 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. Finally, Wells Fargo & Company reduced their price target on PennyMac Financial Services from $120.00 to $115.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 23rd. One analyst has rated the stock with a sell rating, one has issued a hold rating and five have issued a buy rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $118.67.

PennyMac Financial Services Price Performance

Shares of PennyMac Financial Services stock traded up $1.75 during trading on Friday, reaching $99.38. 340,967 shares of the company's stock were exchanged, compared to its average volume of 378,744. The company has a debt-to-equity ratio of 3.03, a quick ratio of 0.34 and a current ratio of 0.34. PennyMac Financial Services has a 1-year low of $85.74 and a 1-year high of $119.13. The company has a market cap of $5.13 billion, a P/E ratio of 13.78 and a beta of 1.50. The firm's 50-day moving average price is $97.66 and its 200 day moving average price is $99.34.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last posted its quarterly earnings results on Tuesday, July 22nd. The real estate investment trust reported $1.02 EPS for the quarter, missing analysts' consensus estimates 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 business had revenue of $444.73 million for the quarter, compared to analyst estimates of $547.44 million. During the same period last year, the firm posted $1.85 EPS. PennyMac Financial Services's quarterly revenue was up 9.5% on a year-over-year basis. As a group, research analysts anticipate that PennyMac Financial Services will post 13.77 earnings per share for the current year.

Insider Buying and Selling

In other news, CFO Daniel Stanley Perotti sold 10,500 shares of the stock in a transaction that occurred on Thursday, May 15th. The stock was sold at an average price of $99.45, for a total value of $1,044,225.00. Following the completion of the sale, the chief financial officer directly owned 234,025 shares of the company's stock, valued at $23,273,786.25. This represents a 4.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO David Spector sold 5,000 shares of the stock in a transaction that occurred on Monday, July 7th. The stock was sold at an average price of $100.81, for a total value of $504,050.00. Following the completion of the sale, the chief executive officer directly owned 135,604 shares of the company's stock, valued at approximately $13,670,239.24. This trade represents a 3.56% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 25,500 shares of company stock worth $2,535,475. 15.80% of the stock is owned by company insiders.

Institutional Trading of PennyMac Financial Services

Several institutional investors and hedge funds have recently modified their holdings of the stock. AlphaQuest LLC grew its position in shares of PennyMac Financial Services by 4.4% in the first quarter. AlphaQuest LLC now owns 2,587 shares of the real estate investment trust's stock valued at $259,000 after purchasing an additional 110 shares in the last quarter. CWM LLC lifted its stake in PennyMac Financial Services by 71.5% during the first quarter. CWM LLC now owns 271 shares of the real estate investment trust's stock worth $27,000 after purchasing an additional 113 shares during the last quarter. Hohimer Wealth Management LLC lifted its stake in PennyMac Financial Services by 5.4% during the first quarter. Hohimer Wealth Management LLC now owns 2,351 shares of the real estate investment trust's stock worth $235,000 after purchasing an additional 121 shares during the last quarter. Summit Investment Advisors Inc. lifted its stake in PennyMac Financial Services by 5.8% during the fourth quarter. Summit Investment Advisors Inc. now owns 2,797 shares of the real estate investment trust's stock worth $286,000 after purchasing an additional 154 shares during the last quarter. Finally, Teacher Retirement System of Texas lifted its stake in PennyMac Financial Services by 4.2% during the second quarter. Teacher Retirement System of Texas now owns 4,687 shares of the real estate investment trust's stock worth $467,000 after purchasing an additional 191 shares during the last quarter. 57.87% of the stock is owned by hedge funds and other institutional investors.

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.