PennyMac Financial Services (NYSE:PFSI) Sets New 1-Year Low - What's Next?

Key Points

• PennyMac Financial Services shares hit a new 52-week low, falling to $69.81 during Thursday trading and remaining below both their 50-day and 200-day moving averages.
• Analysts have recently lowered price targets and ratings, resulting in a consensus “Hold” rating and an average target price of $104.88.
• The company reported quarterly EPS of $1.39, missing estimates of $2.11, while revenue increased 11.8% year over year; it also maintained a quarterly dividend of $0.30 per share.

Shares of PennyMac Financial Services, Inc. (NYSE:PFSI - Get Free Report) hit a new 52-week low during mid-day trading on Thursday . The stock traded as low as $69.81 and last traded at $69.8650, with a volume of 10999 shares. The stock had previously closed at $70.91.

Analyst Ratings Changes

Several analysts have issued reports on PFSI shares. Stephens reduced their price target 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. Wells Fargo & Company reduced their price objective on shares of PennyMac Financial Services from $100.00 to $95.00 and set an "overweight" rating on the stock in a research note on Thursday, July 30th. Keefe, Bruyette & Woods lowered their target price on shares of PennyMac Financial Services from $108.00 to $100.00 and set an "outperform" rating for the company in a research note on Friday, July 31st. Piper Sandler downgraded shares of PennyMac Financial Services from an "overweight" rating to a "neutral" rating and lowered their target price for the company from $106.00 to $86.00 in a report on Thursday, July 30th. Finally, Wall Street Zen downgraded PennyMac Financial Services from a "hold" rating to a "sell" rating in a research report on Saturday, August 1st. 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 stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $104.88.

PennyMac Financial Services Price Performance

The company has a debt-to-equity ratio of 3.22, a quick ratio of 0.38 and a current ratio of 0.38. The business's fifty day simple moving average is $78.48 and its 200 day simple moving average is $84.10. The stock has a market cap of $3.62 billion, a price-to-earnings ratio of 9.56, a price-to-earnings-growth ratio of 0.68 and a beta of 1.44.

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

PennyMac Financial Services Dividend Announcement

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

Insider Buying and Selling

In other PennyMac Financial Services news, CAO Gregory Hendry sold 2,943 shares of the business's stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $81.71, for a total transaction of $240,472.53. Following the completion of the sale, the chief accounting officer owned 48,968 shares in the company, valued at $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 is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 15.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. The Manufacturers Life Insurance Company acquired a new position in shares of PennyMac Financial Services during the second quarter valued at $1,713,000. Donald Smith & CO. Inc. acquired a new stake in PennyMac Financial Services in the second quarter worth about $163,940,000. Norges Bank bought a new position in PennyMac Financial Services in the 4th quarter valued at about $44,287,000. Dimensional Fund Advisors LP grew its position in PennyMac Financial Services by 7.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,916,271 shares of the real estate investment trust's stock valued at $167,474,000 after buying an additional 126,902 shares in the last quarter. Finally, MFN Partners Management LP acquired a new position in PennyMac Financial Services during the 2nd quarter valued at about $394,719,083. 57.87% of the stock is currently owned by 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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