PennyMac Financial Services (NYSE:PFSI) Lowered to Sell Rating by Wall Street Zen

Wall Street Zen lowered shares of PennyMac Financial Services (NYSE:PFSI) from a hold rating to a sell rating in a report released on Sunday.

Several other analysts have also issued reports on the stock. UBS Group dropped their price target on shares of PennyMac Financial Services from $115.00 to $110.00 and set a “neutral” rating on the stock in a research report on Thursday, July 24th. Wells Fargo & Company initiated coverage on shares of PennyMac Financial Services in a research report on Monday, August 25th. They set an “overweight” rating and a $115.00 price target on the stock. Piper Sandler dropped their price target on shares of PennyMac Financial Services from $125.00 to $121.00 and set an “overweight” rating on the stock in a research report on Wednesday, July 23rd. Keefe, Bruyette & Woods upped their price target on shares of PennyMac Financial Services from $117.00 to $121.00 and gave the stock an “outperform” rating in a research report on Wednesday, September 3rd. Finally, Barclays dropped their price target on shares of PennyMac Financial Services from $124.00 to $119.00 and set an “overweight” rating on the stock in a research report on Tuesday, July 8th. Five equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, PennyMac Financial Services has a consensus rating of “Moderate Buy” and an average price target of $119.33.

PennyMac Financial Services Stock Performance

Shares of PFSI stock opened at $122.92 on Friday. The company’s fifty day simple moving average is $108.15 and its 200-day simple moving average is $101.33. The company has a quick ratio of 0.34, a current ratio of 0.34 and a debt-to-equity ratio of 3.03. The firm has a market cap of $6.36 billion, a PE ratio of 17.05 and a beta of 1.51. PennyMac Financial Services has a 12 month low of $85.74 and a 12 month high of $130.02.

PennyMac Financial Services (NYSE:PFSI) last announced its quarterly earnings data on Tuesday, July 22nd. The real estate investment trust reported $1.02 EPS for the quarter, missing analysts’ consensus estimates of $3.01 by ($1.99). The business had revenue of $444.73 million during the quarter, compared to the consensus estimate of $547.44 million. PennyMac Financial Services had a return on equity of 12.18% and a net margin of 22.00%.The business’s revenue for the quarter was up 9.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.85 EPS. Equities research analysts expect that PennyMac Financial Services will post 13.77 EPS for the current fiscal year.

PennyMac Financial Services Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 22nd. Shareholders of record on Wednesday, August 13th were issued a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 1.0%. The ex-dividend date was Wednesday, August 13th. PennyMac Financial Services’s payout ratio is currently 16.64%.

Insider Activity at PennyMac Financial Services

In related news, CEO David Spector sold 5,000 shares of the company’s stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $105.73, for a total value of $528,650.00. Following the transaction, the chief executive officer directly owned 130,604 shares in the company, valued at approximately $13,808,760.92. This represents a 3.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Joseph F. Mazzella sold 7,107 shares of the company’s stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $108.16, for a total transaction of $768,693.12. Following the completion of the transaction, the director owned 86,050 shares in the company, valued at $9,307,168. This trade represents a 7.63% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 30,632 shares of company stock valued at $3,295,916 in the last ninety days. Company insiders own 15.80% of the company’s stock.

Hedge Funds Weigh In On PennyMac Financial Services

Several institutional investors and hedge funds have recently modified their holdings of PFSI. Orbis Allan Gray Ltd grew its stake in shares of PennyMac Financial Services by 447.5% in the first quarter. Orbis Allan Gray Ltd now owns 926,775 shares of the real estate investment trust’s stock valued at $92,779,000 after acquiring an additional 757,489 shares in the last quarter. Norges Bank acquired a new position in shares of PennyMac Financial Services in the second quarter valued at about $39,976,000. Goldentree Asset Management LP acquired a new position in shares of PennyMac Financial Services in the second quarter valued at about $29,249,000. Millennium Management LLC grew its stake in shares of PennyMac Financial Services by 48.8% in the first quarter. Millennium Management LLC now owns 771,605 shares of the real estate investment trust’s stock valued at $77,245,000 after acquiring an additional 253,031 shares in the last quarter. Finally, Philadelphia Financial Management of San Francisco LLC acquired a new position in shares of PennyMac Financial Services in the first quarter valued at about $18,701,000. 57.87% of the stock is currently owned by institutional investors and hedge funds.

PennyMac Financial Services Company Profile

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.