PennyMac Financial Services (NYSE:PFSI) Hits New 52-Week Low – Here’s Why

PennyMac Financial Services, Inc. (NYSE:PFSI)’s share price reached a new 52-week low on Friday . The company traded as low as $84.10 and last traded at $84.4710, with a volume of 222780 shares traded. The stock had previously closed at $84.61.

Analyst Ratings Changes

PFSI has been the topic of several research analyst reports. Wall Street Zen downgraded PennyMac Financial Services from a “buy” rating to a “hold” rating in a research report on Sunday, January 18th. Wells Fargo & Company cut their price objective 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. Zacks Research downgraded PennyMac Financial Services from a “hold” rating to a “strong sell” rating in a research note on Tuesday, February 3rd. BTIG Research reaffirmed a “buy” rating on shares of PennyMac Financial Services in a report on Friday, January 30th. Finally, Jefferies Financial Group started coverage on PennyMac Financial Services in a research report on Friday, December 19th. They issued a “buy” rating and a $160.00 price target on the stock. Five equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $139.71.

PennyMac Financial Services Stock Performance

The firm’s fifty day moving average price is $112.89 and its 200-day moving average price is $121.16. The company has a market cap of $4.39 billion, a P/E ratio of 9.05, a P/E/G ratio of 0.48 and a beta of 1.56. The company has a current ratio of 0.34, a quick ratio of 0.34 and a debt-to-equity ratio of 3.32.

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

PennyMac Financial Services Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, February 26th. Shareholders of record on Monday, February 16th were issued a $0.30 dividend. The ex-dividend date of this dividend was Friday, February 13th. This represents a $1.20 annualized dividend and a yield of 1.4%. PennyMac Financial Services’s dividend payout ratio is 12.90%.

Insider Buying and Selling

In other news, CFO Daniel Stanley Perotti sold 2,925 shares of PennyMac Financial Services stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $93.30, for a total transaction of $272,902.50. Following the sale, the chief financial officer owned 213,550 shares of the company’s stock, valued at approximately $19,924,215. This trade represents a 1.35% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Gregory L. Hendry sold 3,530 shares of the business’s stock in a transaction that occurred on Thursday, December 18th. The shares were sold at an average price of $131.64, for a total value of $464,689.20. Following the sale, the chief accounting officer owned 48,633 shares in the company, valued at approximately $6,402,048.12. This represents a 6.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 59,810 shares of company stock worth $6,268,192. 15.80% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On PennyMac Financial Services

Several institutional investors and hedge funds have recently bought and sold shares of the business. 140 Summer Partners LP bought a new position in shares of PennyMac Financial Services during the 3rd quarter worth about $55,268,000. Norges Bank acquired a new stake in shares of PennyMac Financial Services during the 2nd quarter valued at about $39,976,000. Goldentree Asset Management LP bought a new stake in PennyMac Financial Services in the second quarter valued at about $29,249,000. Two Sigma Investments LP increased its stake in PennyMac Financial Services by 1,148.7% in the third quarter. Two Sigma Investments LP now owns 310,919 shares of the real estate investment trust’s stock valued at $38,517,000 after acquiring an additional 286,019 shares during the period. Finally, Holocene Advisors LP raised its position in PennyMac Financial Services by 2,379.5% in the third quarter. Holocene Advisors LP now owns 245,268 shares of the real estate investment trust’s stock worth $30,384,000 after purchasing an additional 235,376 shares in the last quarter. 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.