PennyMac Financial Services, Inc. (NYSE:PFSI) Receives $139.71 Average Price Target from Analysts

PennyMac Financial Services, Inc. (NYSE:PFSI) has received an average rating of “Hold” from the nine research firms that are currently covering the stock, Marketbeat reports. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and five have given a buy rating to the company. The average 1 year price target among brokerages that have issued ratings on the stock in the last year is $139.7143.

PFSI has been the subject of a number of recent research reports. Zacks Research downgraded shares of PennyMac Financial Services from a “hold” rating to a “strong sell” rating in a report on Tuesday, February 3rd. Jefferies Financial Group started coverage on PennyMac Financial Services in a research note on Friday, December 19th. They issued a “buy” rating and a $160.00 price target for the company. Weiss Ratings lowered PennyMac Financial Services from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, January 20th. Keefe, Bruyette & Woods dropped their price objective on PennyMac Financial Services from $143.00 to $115.00 and set a “market perform” rating for the company in a report on Monday, February 2nd. Finally, Barclays reduced their target price on PennyMac Financial Services from $158.00 to $136.00 and set an “overweight” rating on the stock in a report on Friday, January 30th.

PennyMac Financial Services Stock Performance

PFSI opened at $90.26 on Tuesday. The company has a debt-to-equity ratio of 3.32, a current ratio of 0.34 and a quick ratio of 0.34. The business has a fifty day simple moving average of $121.07 and a 200 day simple moving average of $122.49. PennyMac Financial Services has a 1 year low of $85.74 and a 1 year high of $160.36. The company has a market capitalization of $4.71 billion, a PE ratio of 9.70, a price-to-earnings-growth ratio of 0.52 and a beta of 1.56.

PennyMac Financial Services (NYSE:PFSI) last posted its 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 for 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 firm’s quarterly revenue was up 14.4% compared to the same quarter last year. During the same period in the prior year, the business posted $1.95 EPS. Research analysts expect that PennyMac Financial Services will post 13.77 EPS for the current year.

PennyMac Financial Services Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, February 26th. Shareholders of record on Monday, February 16th were issued a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend was Friday, February 13th. PennyMac Financial Services’s dividend payout ratio (DPR) is currently 12.90%.

Insider Activity at PennyMac Financial Services

In related news, CFO Daniel Stanley Perotti sold 2,925 shares of the stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $93.30, for a total transaction of $272,902.50. Following the sale, the chief financial officer owned 213,550 shares in the company, valued at approximately $19,924,215. This trade represents a 1.35% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Derek Stark sold 1,903 shares of PennyMac Financial Services stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $91.50, for a total transaction of $174,124.50. Following the completion of the transaction, the insider directly owned 22,477 shares in the company, valued at $2,056,645.50. This trade represents a 7.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 36,308 shares of company stock worth $4,236,500 in the last 90 days. Corporate insiders own 15.80% of the company’s stock.

Institutional Trading of PennyMac Financial Services

Institutional investors and hedge funds have recently modified their holdings of the business. Virtu Financial LLC acquired a new stake in PennyMac Financial Services in the fourth quarter valued at about $379,000. Invesco Ltd. lifted its holdings in shares of PennyMac Financial Services by 7.3% in the fourth quarter. Invesco Ltd. now owns 1,569,184 shares of the real estate investment trust’s stock worth $206,881,000 after acquiring an additional 106,088 shares during the last quarter. Mercer Global Advisors Inc. ADV lifted its holdings in shares of PennyMac Financial Services by 5.2% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 10,167 shares of the real estate investment trust’s stock worth $1,340,000 after acquiring an additional 504 shares during the last quarter. XTX Topco Ltd acquired a new stake in shares of PennyMac Financial Services in the 4th quarter valued at approximately $479,000. Finally, SummitTX Capital L.P. grew its holdings in shares of PennyMac Financial Services by 19.6% during the 4th quarter. SummitTX Capital L.P. now owns 2,795 shares of the real estate investment trust’s stock valued at $368,000 after purchasing an additional 459 shares during the last quarter. 57.87% of the stock is currently owned by institutional investors.

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.