Wall Street Zen Upgrades PennyMac Financial Services (NYSE:PFSI) to "Hold"

Key Points

• Wall Street Zen upgraded PennyMac Financial Services from a "sell" rating to a "hold" rating, indicating a more cautious outlook on the stock.
• Several research firms have adjusted their price targets for PennyMac, with a consensus price target of $119.33 among analysts.
• PennyMac Financial Services reported earnings per share (EPS) of $1.02, missing expectations significantly, which reflects ongoing challenges in the mortgage market.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) was upgraded by analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research note issued on Saturday.

Several other research firms have also commented on PFSI. Piper Sandler lowered their price target on shares of PennyMac Financial Services from $125.00 to $121.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 23rd. Wells Fargo & Company assumed coverage on shares of PennyMac Financial Services in a research report on Monday, August 25th. They issued an "overweight" rating and a $115.00 price target on the stock. Barclays lowered their price target on shares of PennyMac Financial Services from $124.00 to $119.00 and set an "overweight" rating on the stock in a research report on Tuesday, July 8th. UBS Group lowered their price target on shares of PennyMac Financial Services from $115.00 to $110.00 and set a "neutral" rating on the stock in a research report on Thursday, July 24th. Finally, Keefe, Bruyette & Woods increased their price target on shares of PennyMac Financial Services from $117.00 to $121.00 and gave the company an "outperform" rating in a research report on Wednesday, September 3rd. Five investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, PennyMac Financial Services presently has a consensus rating of "Moderate Buy" and a consensus price target of $119.33.

PennyMac Financial Services Trading Up 0.3%

Shares of PennyMac Financial Services stock opened at $124.80 on Friday. PennyMac Financial Services has a 52-week low of $85.74 and a 52-week high of $127.56. The company has a quick ratio of 0.34, a current ratio of 0.34 and a debt-to-equity ratio of 3.03. The company's 50-day simple moving average is $104.78 and its 200-day simple moving average is $100.27. The firm has a market cap of $6.45 billion, a price-to-earnings ratio of 17.31 and a beta of 1.51.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last issued its quarterly earnings results on Tuesday, July 22nd. The real estate investment trust reported $1.02 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $3.01 by ($1.99). PennyMac Financial Services had a return on equity of 12.18% and a net margin of 22.00%.The firm had revenue of $444.73 million for the quarter, compared to analyst estimates of $547.44 million. During the same quarter last year, the firm earned $1.85 earnings per share. The company's revenue was up 9.5% compared to the same quarter last year. As a group, equities research analysts anticipate that PennyMac Financial Services will post 13.77 earnings per share for the current year.

Insider Activity at PennyMac Financial Services

In related news, insider Derek Stark sold 4,750 shares of PennyMac Financial Services stock in a transaction on Monday, August 25th. The shares were sold at an average price of $109.56, for a total transaction of $520,410.00. Following the transaction, the insider owned 20,621 shares in the company, valued at approximately $2,259,236.76. The trade was a 18.72% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO David Spector sold 5,000 shares of PennyMac Financial Services stock in a transaction on Monday, August 18th. The shares were sold at an average price of $105.73, for a total transaction of $528,650.00. Following the transaction, the chief executive officer owned 130,604 shares in the company, valued at $13,808,760.92. The trade was a 3.69% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 30,632 shares of company stock worth $3,295,916 in the last 90 days. Company insiders own 15.80% of the company's stock.

Hedge Funds Weigh In On PennyMac Financial Services

Several hedge funds and other institutional investors have recently made changes to their positions in PFSI. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of PennyMac Financial Services by 4.1% during the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,217 shares of the real estate investment trust's stock valued at $1,554,000 after acquiring an additional 606 shares in the last quarter. Millennium Management LLC lifted its holdings in shares of PennyMac Financial Services by 104.5% during the 4th quarter. Millennium Management LLC now owns 518,574 shares of the real estate investment trust's stock valued at $52,967,000 after acquiring an additional 264,956 shares in the last quarter. ProShare Advisors LLC lifted its holdings in shares of PennyMac Financial Services by 49.0% during the 4th quarter. ProShare Advisors LLC now owns 7,530 shares of the real estate investment trust's stock valued at $769,000 after acquiring an additional 2,478 shares in the last quarter. GAMMA Investing LLC lifted its holdings in shares of PennyMac Financial Services by 12,101.0% during the 1st quarter. GAMMA Investing LLC now owns 11,713 shares of the real estate investment trust's stock valued at $1,173,000 after acquiring an additional 11,617 shares in the last quarter. Finally, Rhumbline Advisers lifted its holdings in shares of PennyMac Financial Services by 1.6% during the 1st quarter. Rhumbline Advisers now owns 42,208 shares of the real estate investment trust's stock valued at $4,225,000 after acquiring an additional 679 shares in the last quarter. Institutional investors and hedge funds own 57.87% of the company's stock.

PennyMac Financial Services Company Profile

PennyMac Financial Services, Inc, through its subsidiaries, engages in the mortgage banking and investment management activities in the United States. The company operates through three segments: Production, Servicing, and Investment Management. The Production segment is involved in the origination, acquisition, and sale of loans.

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