PennyMac Financial Services (NYSE:PFSI) Issues Quarterly Earnings Results

PennyMac Financial Services (NYSE:PFSI) released its earnings results on Wednesday. The real estate investment trust reported $1.39 earnings per share for the quarter, missing the consensus estimate of $2.25 by ($0.86), FiscalAI reports. The business had revenue of $566.00 million for the quarter, compared to the consensus estimate of $581.72 million. PennyMac Financial Services had a return on equity of 10.93% and a net margin of 23.47%.

PennyMac Financial Services Trading Up 0.3%

Shares of PFSI stock traded up $0.22 during mid-day trading on Wednesday, reaching $85.92. 618,225 shares of the stock traded hands, compared to its average volume of 681,072. The company has a market cap of $4.46 billion, a price-to-earnings ratio of 9.13, a price-to-earnings-growth ratio of 0.60 and a beta of 1.44. The company has a quick ratio of 0.33, a current ratio of 0.33 and a debt-to-equity ratio of 3.63. The stock’s fifty day simple moving average is $83.52 and its two-hundred day simple moving average is $94.48. PennyMac Financial Services has a 1-year low of $77.67 and a 1-year high of $160.36.

PennyMac Financial Services Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, May 28th. Stockholders of record on Monday, May 18th were paid a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend was Monday, May 18th. PennyMac Financial Services’s dividend payout ratio (DPR) is presently 12.75%.

Analyst Ratings Changes

PFSI has been the subject of a number of research analyst reports. Zacks Research cut PennyMac Financial Services from a “hold” rating to a “strong sell” rating in a report on Friday, May 8th. Stephens started coverage on PennyMac Financial Services in a research note on Friday, April 24th. They issued an “equal weight” rating and a $100.00 price objective on the stock. BTIG Research decreased their target price on PennyMac Financial Services from $150.00 to $105.00 and set a “buy” rating on the stock in a research report on Tuesday, June 16th. Wall Street Zen raised shares of PennyMac Financial Services from a “sell” rating to a “hold” rating in a report on Saturday, May 9th. Finally, Piper Sandler reduced their price target on shares of PennyMac Financial Services from $112.00 to $106.00 and set an “overweight” rating on the stock in a research note on Thursday, July 2nd. Five equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $114.62.

Insider Activity at PennyMac Financial Services

In related news, CFO Daniel Stanley Perotti sold 2,925 shares of the firm’s stock in a transaction that occurred 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 completion of the transaction, the chief financial officer owned 210,625 shares in the company, valued at $18,429,687.50. This trade represents a 1.37% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Spector sold 10,000 shares of PennyMac Financial Services stock in a transaction that occurred 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 sale, the chief executive officer owned 60,604 shares in the company, valued at approximately $5,332,545.96. This represents a 14.16% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 18,045 shares of company stock worth $1,565,470 in the last quarter. 15.80% of the stock is owned by insiders.

Institutional Trading of PennyMac Financial Services

Several institutional investors have recently modified their holdings of the business. EverSource Wealth Advisors LLC bought a new position in shares of PennyMac Financial Services in the 2nd quarter worth about $26,000. Strs Ohio bought a new stake in shares of PennyMac Financial Services during the 1st quarter valued at about $30,000. Los Angeles Capital Management LLC acquired a new stake in PennyMac Financial Services during the fourth quarter worth approximately $31,000. CIBC Private Wealth Group LLC acquired a new stake in PennyMac Financial Services during the third quarter worth approximately $78,000. Finally, Raymond James Financial Inc. bought a new stake in PennyMac Financial Services in the second quarter worth approximately $82,000. 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.