Piper Sandler Issues Pessimistic Forecast for PennyMac Financial Services (NYSE:PFSI) Stock Price

Key Points

• Piper Sandler cut its price target on PennyMac Financial Services to $106 from $112, while keeping an overweight rating. The new target still implies about 25% upside from the prior close.
• Other analysts have also trimmed their targets recently, with several firms lowering expectations even as most still maintain bullish or neutral ratings. Overall, MarketBeat shows a Hold consensus and a consensus price target of $116.38.
• The stock was trading around $84.67, near its 50-day average and well below its 200-day average, after the company reported EPS of $2.19, slightly missing estimates. Insiders also sold shares in recent months, and the stock remains below its 12-month high of $160.36.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) had its price objective decreased by equities researchers at Piper Sandler from $112.00 to $106.00 in a report released on Thursday,Benzinga reports. The brokerage presently has an "overweight" rating on the real estate investment trust's stock. Piper Sandler's price objective suggests a potential upside of 25.19% from the stock's previous close.

Other analysts also recently issued reports about the stock. BTIG Research dropped their price objective on shares of PennyMac Financial Services from $150.00 to $105.00 and set a "buy" rating for the company in a report on Tuesday, June 16th. Barclays reduced their target price on PennyMac Financial Services from $116.00 to $107.00 and set an "overweight" rating on the stock in a research note on Monday, May 11th. Keefe, Bruyette & Woods lowered their price target on PennyMac Financial Services from $115.00 to $108.00 and set an "outperform" rating on the stock in a research report on Friday, May 8th. Stephens began coverage on PennyMac Financial Services in a research report on Friday, April 24th. They set an "equal weight" rating and a $100.00 price target on the stock. Finally, Zacks Research lowered PennyMac Financial Services from a "hold" rating to a "strong sell" rating in a research note on Friday, May 8th. Six equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, PennyMac Financial Services has a consensus rating of "Hold" and a consensus price target of $116.38.

PennyMac Financial Services Stock Down 2.8%

Shares of NYSE PFSI opened at $84.67 on Thursday. PennyMac Financial Services has a 12 month low of $77.67 and a 12 month high of $160.36. The company has a current ratio of 0.33, a quick ratio of 0.33 and a debt-to-equity ratio of 3.63. The firm has a market capitalization of $4.40 billion, a price-to-earnings ratio of 9.00, a PEG ratio of 0.57 and a beta of 1.44. The business has a 50-day moving average of $85.48 and a 200-day moving average of $101.07.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last announced its earnings results on Tuesday, May 5th. The real estate investment trust reported $2.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.22 by ($0.03). The company had revenue of $544.98 million for the quarter, compared to the consensus estimate of $546.17 million. PennyMac Financial Services had a net margin of 23.47% and a return on equity of 10.93%. The company's revenue for the quarter was up 26.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.42 earnings per share. Sell-side analysts expect that PennyMac Financial Services will post 10.68 earnings per share for the current fiscal year.

Insider Transactions at PennyMac Financial Services

In related news, CAO Gregory L. Hendry sold 2,943 shares of PennyMac Financial Services stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $81.71, for a total value of $240,472.53. Following the transaction, the chief accounting officer owned 48,968 shares in the company, valued at $4,001,175.28. This trade represents a 5.67% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel Stanley Perotti sold 2,925 shares of the business's stock in a transaction on Friday, May 15th. The stock was sold at an average price of $87.50, for a total transaction of $255,937.50. Following the completion of the sale, the chief financial officer directly owned 210,625 shares of the company's stock, valued at $18,429,687.50. This represents a 1.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 25,868 shares of company stock worth $2,304,610. 15.80% of the stock is currently owned by insiders.

Institutional Trading of PennyMac Financial Services

Several institutional investors have recently added to or reduced their stakes in PFSI. Empowered Funds LLC purchased a new position in shares of PennyMac Financial Services in the first quarter worth about $233,000. EMG Holdings L.P. lifted its stake in shares of PennyMac Financial Services by 228.6% in the 1st quarter. EMG Holdings L.P. now owns 65,727 shares of the real estate investment trust's stock valued at $5,745,000 after acquiring an additional 45,727 shares during the last quarter. Bank of America Corp DE boosted its holdings in PennyMac Financial Services by 173.9% during the 1st quarter. Bank of America Corp DE now owns 379,429 shares of the real estate investment trust's stock valued at $33,162,000 after acquiring an additional 240,902 shares during the period. Janus Henderson Group PLC boosted its holdings in PennyMac Financial Services by 1,882.2% during the 1st quarter. Janus Henderson Group PLC now owns 267,868 shares of the real estate investment trust's stock valued at $23,423,000 after acquiring an additional 254,354 shares during the period. Finally, South Dakota Investment Council grew its position in PennyMac Financial Services by 25.7% during the 1st quarter. South Dakota Investment Council now owns 46,038 shares of the real estate investment trust's stock worth $4,024,000 after acquiring an additional 9,400 shares during the last quarter. 57.87% of the stock is currently owned by hedge funds and other institutional investors.

PennyMac Financial Services Company Profile

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.

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