PennyMac Financial Services (NYSE:PFSI) Stock Dropped to Market Perform by Keefe, Bruyette & Woods

PennyMac Financial Services (NYSE:PFSI) was downgraded by equities research analysts at Keefe, Bruyette & Woods from an “outperform” rating to a “market perform” rating in a research note issued on Monday, Benzinga reports. They currently have a $80.00 price objective on the real estate investment trust’s stock, down from their prior price objective of $100.00. Keefe, Bruyette & Woods‘s price target would suggest a potential upside of 27.13% from the stock’s current price.

Several other equities research analysts also recently issued reports on the company. Wall Street Zen downgraded PennyMac Financial Services from a “hold” rating to a “sell” rating in a report on Saturday, August 1st. Weiss Ratings cut PennyMac Financial Services from a “sell (d+)” rating to a “sell (d)” rating in a research report on Thursday. Piper Sandler decreased their target price on PennyMac Financial Services from $86.00 to $71.00 and set a “neutral” rating for the company in a research report on Friday, October 9th. Barclays reduced their price target on shares of PennyMac Financial Services from $85.00 to $71.00 and set an “equal weight” rating for the company in a research report on Monday, October 5th. Finally, Stephens decreased their target price on PennyMac Financial Services from $91.00 to $78.00 and set an “equal weight” rating for the company in a research report on Thursday, July 30th. Three research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $89.29.

PennyMac Financial Services Stock Performance

NYSE PFSI opened at $62.93 on Monday. PennyMac Financial Services has a 1 year low of $57.52 and a 1 year high of $160.36. The firm has a market capitalization of $3.27 billion, a P/E ratio of 14.14 and a beta of 1.48. The firm’s fifty day moving average price is $66.01 and its two-hundred day moving average price is $85.02. The company has a current ratio of 0.38, a quick ratio of 0.38 and a debt-to-equity ratio of 3.22.

PennyMac Financial Services (NYSE:PFSI) last released its earnings results on Thursday, October 29th. The real estate investment trust reported $1.05 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.27 by ($0.22). PennyMac Financial Services had a net margin of 11.72% and a return on equity of 8.20%. The business had revenue of $502.00 million during the quarter, compared to the consensus estimate of $531.77 million. During the same quarter in the prior year, the firm earned $3.37 EPS. The business’s revenue was down 25.9% on a year-over-year basis. As a group, research analysts anticipate that PennyMac Financial Services will post 6.78 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of PFSI. QRG Capital Management Inc. raised its position in PennyMac Financial Services by 7.5% in the second quarter. QRG Capital Management Inc. now owns 3,881 shares of the real estate investment trust’s stock valued at $338,000 after purchasing an additional 271 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in PennyMac Financial Services in the 2nd quarter valued at approximately $25,000. Pictet Asset Management Holding SA boosted its position in PennyMac Financial Services by 6.3% during the first quarter. Pictet Asset Management Holding SA now owns 5,518 shares of the real estate investment trust’s stock worth $482,000 after purchasing an additional 329 shares in the last quarter. GAMMA Investing LLC lifted its holdings in PennyMac Financial Services by 313.2% in the 3rd quarter. GAMMA Investing LLC now owns 438 shares of the real estate investment trust’s stock valued at $27,000 after purchasing an additional 332 shares in the last quarter. Finally, Covestor Ltd boosted its holdings in PennyMac Financial Services by 82.0% in the third quarter. Covestor Ltd now owns 770 shares of the real estate investment trust’s stock valued at $48,000 after acquiring an additional 347 shares during the last quarter. 57.87% of the stock is owned by hedge funds and other institutional investors.

PennyMac Financial Services Company Profile

PennyMac Financial Services, Inc (NYSE: PFSI) is a specialty financial services company focused on the U.S. residential mortgage market. Through its subsidiaries, the company originates, acquires, and services residential mortgage loans, with an emphasis on conventional, government-backed, and other mortgage products.

PennyMac’s primary businesses include mortgage production, loan servicing, and investment management. Its production platform acquires and originates loans through correspondent relationships with banks and other lenders, as well as through direct-to-consumer and broker channels.