PennyMac Financial Services, Inc. (NYSE:PFSI) Receives $131.14 Average PT from Brokerages

Shares of PennyMac Financial Services, Inc. (NYSE:PFSI) have earned an average rating of “Moderate Buy” from the nine ratings firms that are presently covering the stock, Marketbeat.com reports. Three investment analysts have rated the stock with a hold rating and six have issued a buy rating on the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is $131.1429.

PFSI has been the subject of several research reports. Wall Street Zen downgraded PennyMac Financial Services from a “hold” rating to a “sell” rating in a research note on Saturday, April 11th. Barclays lowered their target price on PennyMac Financial Services from $136.00 to $116.00 and set an “overweight” rating on the stock in a report on Monday, April 6th. BTIG Research reissued a “buy” rating on shares of PennyMac Financial Services in a research report on Friday, January 30th. Wells Fargo & Company reduced their price objective on PennyMac Financial Services from $135.00 to $110.00 and set an “overweight” rating on the stock in a research report on Thursday, April 9th. Finally, Jefferies Financial Group initiated coverage on PennyMac Financial Services in a research note on Friday, December 19th. They set a “buy” rating and a $160.00 price objective on the stock.

PennyMac Financial Services Price Performance

PFSI stock opened at $94.76 on Wednesday. The firm has a 50 day moving average of $89.78 and a 200-day moving average of $115.80. PennyMac Financial Services has a 12-month low of $82.65 and a 12-month high of $160.36. The company has a current ratio of 0.34, a quick ratio of 0.34 and a debt-to-equity ratio of 3.32. The company has a market cap of $4.94 billion, a price-to-earnings ratio of 10.19, a PEG ratio of 0.54 and a beta of 1.52.

PennyMac Financial Services (NYSE:PFSI) last released its quarterly earnings results on Thursday, January 29th. The real estate investment trust reported $1.97 earnings per share for the quarter, missing analysts’ consensus estimates of $3.23 by ($1.26). The firm had revenue of $538.01 million during the quarter, compared to analyst estimates of $639.81 million. PennyMac Financial Services had a return on equity of 10.20% and a net margin of 24.48%.The business’s revenue was up 14.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.95 EPS. As a group, equities analysts expect that PennyMac Financial Services will post 13.77 EPS for the current fiscal year.

PennyMac Financial Services Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, February 26th. Stockholders of record on Monday, February 16th were given a $0.30 dividend. The ex-dividend date of this dividend was Friday, February 13th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.3%. PennyMac Financial Services’s payout ratio is currently 12.90%.

Insiders Place Their Bets

In other PennyMac Financial Services news, Director Patrick Kinsella purchased 2,250 shares of the stock in a transaction on Thursday, February 12th. The stock was bought at an average price of $89.15 per share, for a total transaction of $200,587.50. Following the acquisition, the director directly owned 34,210 shares of the company’s stock, valued at $3,049,821.50. This represents a 7.04% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. Also, CFO Daniel Stanley Perotti sold 2,925 shares of the firm’s stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $93.30, for a total transaction of $272,902.50. Following the completion of the sale, the chief financial officer directly owned 213,550 shares in the company, valued at $19,924,215. This represents a 1.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 51,280 shares of company stock valued at $4,630,853 in the last quarter. Corporate insiders own 15.80% of the company’s stock.

Institutional Trading of PennyMac Financial Services

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. boosted its holdings in PennyMac Financial Services by 0.5% in the fourth quarter. Vanguard Group Inc. now owns 2,832,737 shares of the real estate investment trust’s stock valued at $373,468,000 after acquiring an additional 12,782 shares during the last quarter. Invesco Ltd. grew its holdings in shares of PennyMac Financial Services by 7.3% during the 4th quarter. Invesco Ltd. now owns 1,569,184 shares of the real estate investment trust’s stock worth $206,881,000 after purchasing an additional 106,088 shares during the period. 140 Summer Partners LP grew its holdings in shares of PennyMac Financial Services by 50.2% during the 4th quarter. 140 Summer Partners LP now owns 669,892 shares of the real estate investment trust’s stock worth $88,319,000 after purchasing an additional 223,752 shares during the period. Basswood Capital Management L.L.C. increased its position in PennyMac Financial Services by 5.9% during the 2nd quarter. Basswood Capital Management L.L.C. now owns 570,210 shares of the real estate investment trust’s stock worth $56,816,000 after purchasing an additional 31,743 shares in the last quarter. Finally, American Century Companies Inc. raised its holdings in PennyMac Financial Services by 7.5% in the third quarter. American Century Companies Inc. now owns 429,403 shares of the real estate investment trust’s stock valued at $53,195,000 after buying an additional 30,015 shares during the period. 57.87% of the stock is currently owned by institutional investors and hedge funds.

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.