PennyMac Financial Services (NYSE:PFSI) Sets New 12-Month Low – Time to Sell?

PennyMac Financial Services, Inc. (NYSE:PFSI)’s stock price reached a new 52-week low during trading on Monday . The company traded as low as $80.14 and last traded at $80.54, with a volume of 34398 shares. The stock had previously closed at $81.24.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on PFSI shares. Zacks Research cut shares of PennyMac Financial Services from a “hold” rating to a “strong sell” rating in a report on Friday, May 8th. Weiss Ratings cut shares of PennyMac Financial Services from a “hold (c-)” rating to a “sell (d+)” rating in a report on Wednesday, May 6th. Barclays lowered their price target on shares of PennyMac Financial Services from $116.00 to $107.00 and set an “overweight” rating on the stock in a report on Monday, May 11th. Wells Fargo & Company lowered their price target on shares of PennyMac Financial Services from $110.00 to $100.00 and set an “overweight” rating on the stock in a report on Wednesday, May 6th. Finally, Wall Street Zen raised shares of PennyMac Financial Services from a “sell” rating to a “hold” rating in a report on Saturday, May 9th. Six investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $122.75.

PennyMac Financial Services Trading Down 2.4%

The stock has a market cap of $4.12 billion, a P/E ratio of 8.44, a PEG ratio of 0.53 and a beta of 1.44. The firm’s fifty day moving average price is $88.20 and its two-hundred day moving average price is $107.15. The company has a debt-to-equity ratio of 3.63, a current ratio of 0.33 and a quick ratio of 0.33.

PennyMac Financial Services (NYSE:PFSI) last released its quarterly earnings results on Tuesday, May 5th. The real estate investment trust reported $2.19 earnings per share for the quarter, missing the consensus estimate of $2.22 by ($0.03). The firm had revenue of $544.98 million during the quarter, compared to the consensus estimate of $546.17 million. PennyMac Financial Services had a return on equity of 10.93% and a net margin of 23.47%.The company’s revenue for the quarter was up 26.5% compared to the same quarter last year. During the same period in the previous year, the company posted $1.42 EPS. As a group, equities research analysts forecast that PennyMac Financial Services, Inc. will post 10.68 EPS for the current year.

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 issued a $0.30 dividend. The ex-dividend date of this dividend was Monday, May 18th. This represents a $1.20 annualized dividend and a dividend yield of 1.5%. PennyMac Financial Services’s dividend payout ratio is presently 12.75%.

Insider Buying and Selling at PennyMac Financial Services

In other news, CEO David Spector sold 10,000 shares of the company’s stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $87.99, for a total value of $879,900.00. Following the transaction, the chief executive officer owned 60,604 shares of the company’s stock, valued at approximately $5,332,545.96. This represents a 14.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel Stanley Perotti sold 2,925 shares of the company’s stock in a transaction on Friday, May 15th. The stock was sold at an average price of $87.50, for a total transaction of $255,937.50. Following the completion of the transaction, the chief financial officer directly owned 210,625 shares in the company, valued at approximately $18,429,687.50. The trade was a 1.37% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 22,925 shares of company stock worth $2,064,138. Insiders own 15.80% 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 stock. EverSource Wealth Advisors LLC purchased a new position in PennyMac Financial Services in the second quarter worth $26,000. Caitong International Asset Management Co. Ltd grew its position in PennyMac Financial Services by 7,600.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 231 shares of the real estate investment trust’s stock worth $30,000 after acquiring an additional 228 shares in the last quarter. Strs Ohio purchased a new position in PennyMac Financial Services in the first quarter worth $30,000. Los Angeles Capital Management LLC purchased a new position in PennyMac Financial Services in the fourth quarter worth $31,000. Finally, GAMMA Investing LLC grew its position in PennyMac Financial Services by 97.3% in the fourth quarter. GAMMA Investing LLC now owns 288 shares of the real estate investment trust’s stock worth $38,000 after acquiring an additional 142 shares in the last quarter. 57.87% of the stock is currently owned by hedge funds and other institutional investors.

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.