Wedbush Reiterates Outperform Rating for PennyMac Financial Services (NYSE:PFSI)

PennyMac Financial Services (NYSE:PFSI)‘s stock had its “outperform” rating reiterated by equities research analysts at Wedbush in a research note issued on Thursday, Benzinga reports. They presently have a $110.00 price target on the real estate investment trust’s stock. Wedbush’s target price would suggest a potential upside of 26.42% from the stock’s previous close. Wedbush also issued estimates for PennyMac Financial Services’ Q3 2024 earnings at $2.87 EPS, FY2024 earnings at $10.85 EPS and FY2025 earnings at $12.70 EPS.

Several other equities analysts also recently commented on the stock. Deutsche Bank Aktiengesellschaft initiated coverage on shares of PennyMac Financial Services in a research report on Wednesday, January 10th. They set a “buy” rating and a $115.00 target price on the stock. Barclays raised their price target on PennyMac Financial Services from $103.00 to $112.00 and gave the company an “overweight” rating in a research report on Tuesday, April 9th. Keefe, Bruyette & Woods raised PennyMac Financial Services from a “market perform” rating to an “outperform” rating and raised their price target for the company from $100.00 to $105.00 in a research report on Tuesday, April 9th. Finally, StockNews.com raised PennyMac Financial Services from a “sell” rating to a “hold” rating in a research report on Thursday, April 11th. One equities research analyst has rated the stock with a sell rating, one has assigned a hold rating and six have given a buy rating to the company. Based on data from MarketBeat, PennyMac Financial Services currently has a consensus rating of “Moderate Buy” and an average target price of $97.75.

PennyMac Financial Services Trading Up 0.9 %

PennyMac Financial Services stock opened at $87.01 on Thursday. The company has a debt-to-equity ratio of 1.90, a current ratio of 0.37 and a quick ratio of 0.37. The company has a market capitalization of $4.39 billion, a price-to-earnings ratio of 30.21, a PEG ratio of 0.61 and a beta of 1.67. PennyMac Financial Services has a one year low of $56.16 and a one year high of $94.78. The company’s fifty day moving average price is $87.83 and its two-hundred day moving average price is $83.05.

PennyMac Financial Services (NYSE:PFSI) last posted its earnings results on Wednesday, April 24th. The real estate investment trust reported $2.48 EPS for the quarter, topping the consensus estimate of $2.34 by $0.14. The firm had revenue of $305.66 million for the quarter, compared to the consensus estimate of $422.87 million. PennyMac Financial Services had a net margin of 10.94% and a return on equity of 10.51%. On average, analysts forecast that PennyMac Financial Services will post 10.41 earnings per share for the current fiscal year.

Insider Activity at PennyMac Financial Services

In related news, CEO David Spector sold 10,000 shares of the stock in a transaction dated Tuesday, April 9th. The shares were sold at an average price of $90.72, for a total value of $907,200.00. Following the completion of the sale, the chief executive officer now owns 250,604 shares in the company, valued at $22,734,794.88. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. In other PennyMac Financial Services news, insider James Follette sold 2,617 shares of the firm’s stock in a transaction dated Tuesday, February 27th. The shares were sold at an average price of $86.24, for a total transaction of $225,690.08. Following the completion of the transaction, the insider now owns 7,257 shares in the company, valued at $625,843.68. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO David Spector sold 10,000 shares of the firm’s stock in a transaction dated Tuesday, April 9th. The stock was sold at an average price of $90.72, for a total transaction of $907,200.00. Following the transaction, the chief executive officer now owns 250,604 shares of the company’s stock, valued at approximately $22,734,794.88. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 87,802 shares of company stock worth $7,666,108. Company insiders own 17.40% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Qube Research & Technologies Ltd bought a new position in PennyMac Financial Services during the third quarter worth about $3,370,000. Graham Capital Management L.P. bought a new position in PennyMac Financial Services during the third quarter worth about $1,237,000. Adage Capital Partners GP L.L.C. bought a new position in PennyMac Financial Services during the third quarter worth about $3,657,000. Invesco Ltd. lifted its stake in PennyMac Financial Services by 47.6% during the third quarter. Invesco Ltd. now owns 490,297 shares of the real estate investment trust’s stock worth $32,654,000 after purchasing an additional 158,181 shares during the period. Finally, Deutsche Bank AG increased its holdings in shares of PennyMac Financial Services by 13.4% during the third quarter. Deutsche Bank AG now owns 13,409 shares of the real estate investment trust’s stock worth $893,000 after buying an additional 1,587 shares in the last quarter. Institutional investors own 57.87% of the company’s stock.

About PennyMac Financial Services

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.