PennyMac Financial Services (NYSE:PFSI) Stock Price Crosses Below 50 Day Moving Average - Time to Sell?

Key Points

• PFSI fell below its 50-day moving average, trading as low as $62.20 versus the $64.82 average; its 200-day average was $82.03.
• The latest quarter missed estimates: EPS was $1.05 versus $1.27 expected, revenue was $502 million versus $531.77 million, and revenue declined 25.9% year over year. Analysts’ average rating was “Hold,” with an average price target of $88.71.
• PennyMac announced a quarterly dividend of $0.30 per share, equivalent to $1.20 annually and a 1.9% yield.

PennyMac Financial Services, Inc. (NYSE:PFSI - Get Free Report) shares passed below its 50-day moving average during trading on Tuesday. The stock has a 50-day moving average of $64.82 and traded as low as $62.20. PennyMac Financial Services shares last traded at $62.7260, with a volume of 541,655 shares traded.

Wall Street Analysts Forecast Growth

PFSI has been the subject of a number of analyst reports. Weiss Ratings downgraded shares of PennyMac Financial Services from a "sell (d+)" rating to a "sell (d)" rating in a report on Thursday, October 29th. Wells Fargo & Company reduced their price objective on PennyMac Financial Services from $95.00 to $85.00 and set an "overweight" rating on the stock in a research note on Friday, October 30th. Barclays reduced their price objective on PennyMac Financial Services from $71.00 to $67.00 and set an "equal weight" rating on the stock in a research note on Monday, November 2nd. BTIG Research decreased their price objective on PennyMac Financial Services from $90.00 to $80.00 and set a "buy" rating on the stock in a research report on Monday, October 12th. Finally, Keefe, Bruyette & Woods lowered PennyMac Financial Services from a "moderate buy" rating to a "hold" rating and lowered their price objective for the company from $100.00 to $80.00 in a research note on Monday, November 2nd. Three research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, PennyMac Financial Services has an average rating of "Hold" and an average price target of $88.71.

PennyMac Financial Services Price Performance

The company has a current ratio of 0.29, a quick ratio of 0.29 and a debt-to-equity ratio of 3.12. The stock has a market capitalization of $3.26 billion, a P/E ratio of 14.10 and a beta of 1.48. The stock has a 50 day moving average of $64.82 and a 200-day moving average of $82.03.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last announced its quarterly earnings data on Thursday, October 29th. The real estate investment trust reported $1.05 EPS for the quarter, missing the consensus estimate of $1.27 by ($0.22). PennyMac Financial Services had a net margin of 11.72% and a return on equity of 8.18%. The business had revenue of $502.00 million during the quarter, compared to the consensus estimate of $531.77 million. During the same period last year, the company earned $3.37 EPS. The business's revenue was down 25.9% compared to the same quarter last year. On average, equities research analysts anticipate that PennyMac Financial Services, Inc. will post 5.78 earnings per share for the current fiscal year.

PennyMac Financial Services Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, November 27th. Stockholders of record on Monday, November 16th will be paid a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend is Monday, November 16th. PennyMac Financial Services's payout ratio is currently 26.97%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. MFN Partners Management LP purchased a new position in PennyMac Financial Services in the 2nd quarter worth about $394,719,083. BlackRock Inc. bought a new position in PennyMac Financial Services in the 2nd quarter worth about $202,735,000. Donald Smith & CO. Inc. bought a new position in PennyMac Financial Services in the 2nd quarter worth about $163,940,000. Bank of New York Mellon Corp purchased a new position in shares of PennyMac Financial Services during the second quarter worth approximately $26,424,000. Finally, Bank of America Corp DE purchased a new position in shares of PennyMac Financial Services during the second quarter worth approximately $24,930,000. 57.87% of the stock is currently owned by institutional investors.

PennyMac Financial Services Company Profile

PennyMac Financial Services, Inc. is a mortgage banking company founded in 2008 and headquartered in Westlake Village, California. It operates primarily in the U.S. residential mortgage market, originating and acquiring home loans through correspondent, broker-direct and consumer-direct channels. The company also services residential mortgage loans for itself and other investors. Its servicing activities include collecting payments, managing escrow accounts and supporting borrowers throughout the life of their loans.

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