PennyMac Financial Services (NYSE:PFSI) Cut 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 Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued on Saturday.

Several other research analysts have also issued reports on PFSI. Keefe, Bruyette & Woods reduced their price target on PennyMac Financial Services from $121.00 to $117.00 and set an "outperform" rating on the stock in a research report on Thursday, July 24th. Piper Sandler dropped their price target on PennyMac Financial Services from $125.00 to $121.00 and set an "overweight" rating on the stock in a research note on Wednesday, July 23rd. Barclays dropped their price target on PennyMac Financial Services from $124.00 to $119.00 and set an "overweight" rating on the stock in a research note on Tuesday, July 8th. Wells Fargo & Company dropped their price target on PennyMac Financial Services from $120.00 to $115.00 and set an "overweight" rating on the stock in a research note on Wednesday, July 23rd. Finally, UBS Group dropped their price target on PennyMac Financial Services from $115.00 to $110.00 and set a "neutral" rating on the stock in a research note on Thursday, July 24th. One research analyst has rated the stock with a sell rating, one has assigned a hold rating and five have issued a buy rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $118.67.

PennyMac Financial Services Stock Performance

PennyMac Financial Services stock traded down $0.62 during trading hours on Friday, hitting $98.63. The stock had a trading volume of 75,496 shares, compared to its average volume of 376,705. PennyMac Financial Services has a fifty-two week low of $85.74 and a fifty-two week high of $119.13. 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 50-day moving average of $97.71 and a two-hundred day moving average of $99.34. The company has a market cap of $5.09 billion, a PE ratio of 13.67 and a beta of 1.50.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last announced its quarterly earnings data 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 net margin of 22.00% and a return on equity of 12.18%. The firm had revenue of $444.73 million during the quarter, compared to the consensus estimate of $547.44 million. During the same quarter in the previous year, the business posted $1.85 earnings per share. The firm's quarterly revenue was up 9.5% on a year-over-year basis. On average, equities research analysts anticipate that PennyMac Financial Services will post 13.77 EPS for the current fiscal year.

Insider Buying and Selling

In other PennyMac Financial Services news, CEO David Spector sold 5,000 shares of the stock in a transaction dated Monday, July 7th. The stock was sold at an average price of $100.81, for a total transaction of $504,050.00. Following the completion of the sale, the chief executive officer directly owned 135,604 shares in the company, valued at approximately $13,670,239.24. This trade represents a 3.56% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Daniel Stanley Perotti sold 10,500 shares of the stock in a transaction dated 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 sale, the chief financial officer owned 234,025 shares of the company's stock, valued at approximately $23,273,786.25. The trade was a 4.29% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 25,500 shares of company stock valued at $2,535,475. 15.80% of the stock is owned by company insiders.

Institutional Investors Weigh In On PennyMac Financial Services

Several large investors have recently modified their holdings of PFSI. Sei Investments Co. lifted its holdings in shares of PennyMac Financial Services by 5.7% during the 4th quarter. Sei Investments Co. now owns 18,379 shares of the real estate investment trust's stock worth $1,877,000 after acquiring an additional 991 shares during the last quarter. Vanguard Group Inc. lifted its holdings in shares of PennyMac Financial Services by 7.4% during the 4th quarter. Vanguard Group Inc. now owns 2,886,580 shares of the real estate investment trust's stock worth $294,835,000 after acquiring an additional 199,667 shares during the last quarter. Norges Bank bought a new stake in PennyMac Financial Services in the fourth quarter worth $38,004,000. Franklin Resources Inc. lifted its stake in PennyMac Financial Services by 102.0% in the fourth quarter. Franklin Resources Inc. now owns 21,935 shares of the real estate investment trust's stock worth $2,240,000 after purchasing an additional 11,074 shares during the last quarter. Finally, Geode Capital Management LLC lifted its stake in PennyMac Financial Services by 1.7% in the fourth quarter. Geode Capital Management LLC now owns 658,559 shares of the real estate investment trust's stock worth $67,283,000 after purchasing an additional 10,795 shares during the last quarter. Hedge funds and other institutional investors own 57.87% of the company's stock.

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.