PennyMac Financial Services (NYSE:PFSI) Sets New 1-Year Low - Here's Why

Key Points

• PennyMac Financial Services shares fell to a new 52-week low of $67.54, trading below both their 50-day and 200-day moving averages. The stock has a consensus “Hold” rating, with analysts’ average price target of $104.88.
• Analysts recently reduced their price targets and ratings, including downgrades from Piper Sandler and Wall Street Zen. The changes followed quarterly results in which EPS of $1.39 and revenue of $496.96 million missed consensus estimates.
• The company maintained its quarterly dividend at $0.30 per share, equivalent to a 1.8% annual yield. Institutional investors own approximately 57.87% of outstanding shares, while insiders own 15.20%.

PennyMac Financial Services, Inc. (NYSE:PFSI - Get Free Report) shares hit a new 52-week low during trading on Wednesday . The company traded as low as $67.54 and last traded at $68.0820, with a volume of 1036217 shares trading hands. The stock had previously closed at $68.97.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the company. Wall Street Zen downgraded PennyMac Financial Services from a "hold" rating to a "sell" rating in a research report on Saturday, August 1st. Stephens cut their price target on PennyMac Financial Services from $91.00 to $78.00 and set an "equal weight" rating for the company in a report on Thursday, July 30th. Weiss Ratings reiterated a "sell (d+)" rating on shares of PennyMac Financial Services in a research report on Monday, August 3rd. Barclays decreased their price objective on PennyMac Financial Services from $93.00 to $85.00 and set an "equal weight" rating on the stock in a report on Thursday, July 30th. Finally, Piper Sandler cut PennyMac Financial Services from an "overweight" rating to a "neutral" rating and lowered their price objective for the company from $106.00 to $86.00 in a research report on Thursday, July 30th. Four research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, PennyMac Financial Services has a consensus rating of "Hold" and a consensus target price of $104.88.

PennyMac Financial Services Stock Performance

The company has a current ratio of 0.38, a quick ratio of 0.38 and a debt-to-equity ratio of 3.22. The stock has a fifty day moving average price of $77.39 and a 200-day moving average price of $83.47. The firm has a market capitalization of $3.54 billion, a price-to-earnings ratio of 9.35, a PEG ratio of 0.65 and a beta of 1.44.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last posted its earnings results 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). The company had revenue of $496.96 million for the quarter, compared to the consensus estimate of $571.60 million. PennyMac Financial Services had a return on equity of 11.18% and a net margin of 17.74%.PennyMac Financial Services's quarterly revenue was up 11.8% compared to the same quarter last year. During the same quarter last year, the business earned $2.54 EPS. As a group, analysts anticipate that PennyMac Financial Services, Inc. will post 7.36 earnings per share for the current fiscal year.

PennyMac Financial Services Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, August 27th. Investors of record on Monday, August 17th were given a dividend of $0.30 per share. The ex-dividend date was Monday, August 17th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.8%. PennyMac Financial Services's dividend payout ratio (DPR) is 16.48%.

Insider Buying and Selling at PennyMac Financial Services

In other news, CAO Gregory Hendry sold 2,177 shares of the firm's stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $86.89, for a total transaction of $189,159.53. Following the completion of the sale, the chief accounting officer owned 48,968 shares of the company's stock, valued at approximately $4,254,829.52. This trade represents a 4.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 15.20% of the company's stock.

Institutional Trading of PennyMac Financial Services

A number of hedge funds and other institutional investors have recently made changes to their positions in PFSI. BlueCrest Capital Management Ltd raised its holdings in shares of PennyMac Financial Services by 12.8% in the second quarter. BlueCrest Capital Management Ltd now owns 396,103 shares of the real estate investment trust's stock valued at $34,501,000 after buying an additional 45,008 shares during the last quarter. Nykredit A S bought a new stake in PennyMac Financial Services during the 2nd quarter worth about $195,000. Corient Private Wealth LP increased its position in PennyMac Financial Services by 1,030.8% in the 2nd quarter. Corient Private Wealth LP now owns 26,653 shares of the real estate investment trust's stock valued at $2,321,000 after acquiring an additional 24,296 shares in the last quarter. Amundi acquired a new stake in PennyMac Financial Services in the 2nd quarter valued at about $283,000. Finally, Wellington Management Group LLP increased its position in PennyMac Financial Services by 28.1% in the 2nd quarter. Wellington Management Group LLP now owns 348,769 shares of the real estate investment trust's stock valued at $30,378,000 after acquiring an additional 76,499 shares in the last quarter. 57.87% of the stock is currently owned by institutional investors and hedge funds.

About PennyMac Financial Services

PennyMac Financial Services, Inc NYSE: PFSI is a mortgage banking company that provides a range of residential lending and loan servicing services in the United States. The company operates through its subsidiaries and focuses primarily on the production and servicing of conventional and government-insured residential mortgage loans.

PennyMac's loan production business acquires, originates and refinances mortgage loans through correspondent, broker-direct and consumer-direct channels.

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