Piper Sandler Has Lowered Expectations for PennyMac Financial Services (NYSE:PFSI) Stock Price

PennyMac Financial Services (NYSE:PFSI) had its target price decreased by equities research analysts at Piper Sandler from $137.00 to $122.00 in a research note issued on Thursday,Benzinga reports. The brokerage presently has an “overweight” rating on the real estate investment trust’s stock. Piper Sandler’s price target points to a potential upside of 39.91% from the company’s previous close.

Several other research analysts have also issued reports on PFSI. Wells Fargo & Company dropped their target price on PennyMac Financial Services from $150.00 to $135.00 and set an “overweight” rating for the company in a research report on Friday, January 30th. Wall Street Zen downgraded PennyMac Financial Services from a “buy” rating to a “hold” rating in a report on Sunday, January 18th. Barclays decreased their price target on PennyMac Financial Services from $158.00 to $136.00 and set an “overweight” rating for the company in a research note on Friday, January 30th. Jefferies Financial Group initiated coverage on PennyMac Financial Services in a report on Friday, December 19th. They set a “buy” rating and a $160.00 price objective for the company. Finally, Zacks Research downgraded PennyMac Financial Services from a “hold” rating to a “strong sell” rating in a research report on Tuesday, February 3rd. Six equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $137.57.

PennyMac Financial Services Trading Down 0.6%

Shares of PennyMac Financial Services stock traded down $0.50 during trading on Thursday, hitting $87.20. The stock had a trading volume of 27,891 shares, compared to its average volume of 855,930. The firm’s fifty day simple moving average is $97.33 and its 200-day simple moving average is $118.49. The stock has a market cap of $4.55 billion, a PE ratio of 9.37, a PEG ratio of 0.50 and a beta of 1.52. The company has a debt-to-equity ratio of 3.32, a current ratio of 0.34 and a quick ratio of 0.34. PennyMac Financial Services has a 12 month low of $82.65 and a 12 month high of $160.36.

PennyMac Financial Services (NYSE:PFSI) last released its quarterly earnings results on Thursday, January 29th. The real estate investment trust reported $1.97 EPS for the quarter, missing analysts’ consensus estimates of $3.23 by ($1.26). The firm had revenue of $538.01 million for the quarter, compared to analysts’ expectations of $639.81 million. PennyMac Financial Services had a return on equity of 10.20% and a net margin of 24.48%.PennyMac Financial Services’s revenue for the quarter was up 14.4% on a year-over-year basis. During the same period in the prior year, the firm posted $1.95 earnings per share. As a group, sell-side analysts expect that PennyMac Financial Services will post 13.77 EPS for the current fiscal year.

Insider Activity at PennyMac Financial Services

In other PennyMac Financial Services news, insider Derek Stark sold 1,066 shares of the firm’s stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $87.66, for a total transaction of $93,445.56. Following the transaction, the insider directly owned 20,944 shares in the company, valued at $1,835,951.04. This trade represents a 4.84% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Daniel Stanley Perotti sold 2,925 shares of the firm’s stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $93.30, for a total value of $272,902.50. Following the transaction, the chief financial officer owned 213,550 shares in the company, valued at $19,924,215. The trade was a 1.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 51,280 shares of company stock worth $5,154,453. Insiders own 15.80% of the company’s stock.

Hedge Funds Weigh In On PennyMac Financial Services

Hedge funds and other institutional investors have recently made changes to their positions in the company. AQR Capital Management LLC raised its holdings in shares of PennyMac Financial Services by 3.8% in the first quarter. AQR Capital Management LLC now owns 24,012 shares of the real estate investment trust’s stock valued at $2,404,000 after acquiring an additional 875 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in PennyMac Financial Services by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,923 shares of the real estate investment trust’s stock worth $1,594,000 after acquiring an additional 706 shares in the last quarter. 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 worth $1,540,000 after acquiring an additional 840 shares in the last quarter. Strs Ohio purchased a new position in PennyMac Financial Services during the 1st quarter valued at about $30,000. Finally, Legal & General Group Plc increased its position in PennyMac Financial Services by 0.5% during the 2nd quarter. Legal & General Group Plc now owns 35,478 shares of the real estate investment trust’s stock valued at $3,535,000 after purchasing an additional 173 shares during the period. Institutional investors own 57.87% of the company’s stock.

About PennyMac Financial Services

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.