PennyMac Financial Services, Inc. (NYSE:PFSI) Receives Average Recommendation of “Hold” from Brokerages

Shares of PennyMac Financial Services, Inc. (NYSE:PFSI) have earned an average rating of “Hold” from the ten ratings firms that are covering the firm, MarketBeat Ratings reports. Two analysts have rated the stock with a sell recommendation, two have issued a hold recommendation and six have issued a buy recommendation on the company. The average twelve-month target price among brokerages that have issued a report on the stock in the last year is $122.75.

PFSI has been the subject of a number of research analyst reports. Piper Sandler reduced their target price on PennyMac Financial Services from $122.00 to $112.00 and set an “overweight” rating for the company in a report on Wednesday, May 6th. Zacks Research lowered PennyMac Financial Services from a “hold” rating to a “strong sell” rating in a report on Friday, May 8th. Keefe, Bruyette & Woods reduced their price target on shares of PennyMac Financial Services from $115.00 to $108.00 and set an “outperform” rating for the company in a research report on Friday, May 8th. Wall Street Zen raised shares of PennyMac Financial Services from a “sell” rating to a “hold” rating in a research report on Saturday, May 9th. Finally, Stephens assumed coverage on shares of PennyMac Financial Services in a research report on Friday, April 24th. They issued an “equal weight” rating and a $100.00 price target for the company.

Insider Buying and Selling

In other news, CFO Daniel Stanley Perotti sold 2,925 shares of the company’s stock in a transaction on Friday, May 15th. The shares were sold at an average price of $87.50, for a total value of $255,937.50. Following the transaction, the chief financial officer directly owned 210,625 shares of the company’s stock, valued at approximately $18,429,687.50. This represents a 1.37% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Spector sold 10,000 shares of the company’s stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $87.99, for a total transaction of $879,900.00. Following the completion of the transaction, the chief executive officer directly owned 60,604 shares in the company, valued at $5,332,545.96. This trade represents a 14.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 22,925 shares of company stock valued at $2,064,138 over the last three months. 15.80% of the stock is owned by insiders.

Hedge Funds Weigh In On PennyMac Financial Services

A number of hedge funds have recently modified their holdings of the stock. EMG Holdings L.P. increased its stake in shares of PennyMac Financial Services by 228.6% in the first quarter. EMG Holdings L.P. now owns 65,727 shares of the real estate investment trust’s stock worth $5,745,000 after acquiring an additional 45,727 shares during the last quarter. Bank of America Corp DE increased its stake in shares of PennyMac Financial Services by 173.9% in the first quarter. Bank of America Corp DE now owns 379,429 shares of the real estate investment trust’s stock worth $33,162,000 after acquiring an additional 240,902 shares during the last quarter. Janus Henderson Group PLC increased its stake in shares of PennyMac Financial Services by 1,882.2% in the first quarter. Janus Henderson Group PLC now owns 267,868 shares of the real estate investment trust’s stock worth $23,423,000 after acquiring an additional 254,354 shares during the last quarter. South Dakota Investment Council increased its stake in shares of PennyMac Financial Services by 25.7% in the first quarter. South Dakota Investment Council now owns 46,038 shares of the real estate investment trust’s stock worth $4,024,000 after acquiring an additional 9,400 shares during the last quarter. Finally, California State Teachers Retirement System increased its stake in shares of PennyMac Financial Services by 24.4% in the first quarter. California State Teachers Retirement System now owns 36,474 shares of the real estate investment trust’s stock worth $3,188,000 after acquiring an additional 7,161 shares during the last quarter. 57.87% of the stock is owned by institutional investors and hedge funds.

PennyMac Financial Services Price Performance

PFSI opened at $79.46 on Thursday. The stock has a fifty day moving average of $88.07 and a 200-day moving average of $106.83. The firm has a market capitalization of $4.13 billion, a P/E ratio of 8.44, a PEG ratio of 0.53 and a beta of 1.44. PennyMac Financial Services has a 12-month low of $78.81 and a 12-month high of $160.36. The company has a quick ratio of 0.33, a current ratio of 0.33 and a debt-to-equity ratio of 3.63.

PennyMac Financial Services (NYSE:PFSI) last released its earnings results on Tuesday, May 5th. The real estate investment trust reported $2.19 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.22 by ($0.03). The business had revenue of $544.98 million during the quarter, compared to analysts’ expectations of $546.17 million. PennyMac Financial Services had a net margin of 23.47% and a return on equity of 10.93%. PennyMac Financial Services’s revenue for the quarter was up 26.5% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.42 EPS. Equities analysts forecast that PennyMac Financial Services will post 10.68 EPS for the current fiscal year.

PennyMac Financial Services Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, May 28th. Stockholders of record on Monday, May 18th were given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend was Monday, May 18th. PennyMac Financial Services’s dividend payout ratio is 12.75%.

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.