PennyMac Financial Services (NYSE:PFSI) Hits New 1-Year Low - Time to Sell?

Key Points

• PennyMac Financial Services shares fell to a new 52-week low of $71.67, below both their 50-day and 200-day moving averages.
• Analysts have lowered price targets following mixed sentiment and weaker-than-expected quarterly earnings; the stock carries a consensus “Hold” rating with an average target of $104.88.
• The company reported quarterly EPS of $1.39 versus expectations of $2.11, while revenue rose 11.8% year over year. PennyMac maintained a $0.30 quarterly dividend, equating to a 1.7% yield.

PennyMac Financial Services, Inc. (NYSE:PFSI - Get Free Report) hit a new 52-week low during mid-day trading on Tuesday . The company traded as low as $71.67 and last traded at $71.7850, with a volume of 115103 shares changing hands. The stock had previously closed at $73.11.

Wall Street Analyst Weigh In

Several research analysts have commented on the company. Barclays cut their price target on PennyMac Financial Services from $93.00 to $85.00 and set an "equal weight" rating on the stock in a research report on Thursday, July 30th. Stephens cut their target price on shares of PennyMac Financial Services from $91.00 to $78.00 and set an "equal weight" rating on the stock in a report on Thursday, July 30th. Keefe, Bruyette & Woods reduced their price target on shares of PennyMac Financial Services from $108.00 to $100.00 and set an "outperform" rating for the company in a research report on Friday, July 31st. Wells Fargo & Company decreased their price target on shares of PennyMac Financial Services from $100.00 to $95.00 and set an "overweight" rating for the company in a research note on Thursday, July 30th. Finally, Piper Sandler downgraded shares of PennyMac Financial Services from an "overweight" rating to a "neutral" rating and lowered their price objective for the stock from $106.00 to $86.00 in a research report on Thursday, July 30th. Four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $104.88.

PennyMac Financial Services Price Performance

The stock has a fifty day moving average of $80.21 and a two-hundred day moving average of $85.12. The company has a quick ratio of 0.38, a current ratio of 0.38 and a debt-to-equity ratio of 3.22. The stock has a market cap of $3.71 billion, a price-to-earnings ratio of 9.80, a price-to-earnings-growth ratio of 0.69 and a beta of 1.45.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The real estate investment trust reported $1.39 EPS for the quarter, missing the consensus estimate of $2.11 by ($0.72). PennyMac Financial Services had a net margin of 17.74% and a return on equity of 11.18%. During the same quarter last year, the firm posted $2.54 earnings per share. PennyMac Financial Services's revenue for the quarter was up 11.8% compared to the same quarter last year. On average, equities research analysts anticipate that PennyMac Financial Services, Inc. will post 7.36 earnings per share for the current year.

PennyMac Financial Services Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, August 27th. Investors of record on Monday, August 17th were issued a $0.30 dividend. The ex-dividend date was Monday, August 17th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.7%. PennyMac Financial Services's dividend payout ratio is currently 16.48%.

Insider Transactions at PennyMac Financial Services

In other PennyMac Financial Services news, CAO Gregory L. Hendry sold 2,943 shares of the business's stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $81.71, for a total transaction of $240,472.53. Following the sale, the chief accounting officer directly owned 48,968 shares in the company, valued at approximately $4,001,175.28. The trade was a 5.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 15.20% of the company's stock.

Hedge Funds Weigh In On PennyMac Financial Services

Large investors have recently added to or reduced their stakes in the business. AQR Capital Management LLC grew its stake in PennyMac Financial Services by 3.8% during the first quarter. AQR Capital Management LLC now owns 24,012 shares of the real estate investment trust's stock worth $2,404,000 after buying an additional 875 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of PennyMac Financial Services by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,923 shares of the real estate investment trust's stock valued at $1,594,000 after purchasing an additional 706 shares during the period. Intech Investment Management LLC grew its holdings in PennyMac Financial Services by 5.8% during the 1st quarter. Intech Investment Management LLC now owns 15,382 shares of the real estate investment trust's stock valued at $1,540,000 after purchasing an additional 840 shares in the last quarter. Strs Ohio acquired a new position in PennyMac Financial Services in the 1st quarter worth $30,000. Finally, Prudential Financial Inc. boosted its holdings in PennyMac Financial Services by 82.8% in the second quarter. Prudential Financial Inc. now owns 4,084 shares of the real estate investment trust's stock valued at $413,000 after purchasing an additional 1,850 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.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source