PennyMac Financial Services (NYSE:PFSI) Hits New 1-Year Low – Time to Sell?

PennyMac Financial Services, Inc. (NYSE:PFSI) shares hit a new 52-week low 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 have weighed in 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. Barclays cut their price objective 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 cut their price objective 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. Wall Street Zen upgraded shares of PennyMac Financial Services from a “sell” rating to a “hold” rating in a report on Saturday, May 9th. Finally, 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. Six equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $122.75.

PennyMac Financial Services Price Performance

The firm has a market capitalization of $4.26 billion, a P/E ratio of 8.72, a PEG ratio of 0.52 and a beta of 1.44. The company has a debt-to-equity ratio of 3.63, a quick ratio of 0.33 and a current ratio of 0.33. The firm has a 50-day moving average of $88.00 and a 200-day moving average of $106.53.

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

PennyMac Financial Services Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, May 28th. Investors of record on Monday, May 18th were given a $0.30 dividend. The ex-dividend date of this dividend was Monday, May 18th. This represents a $1.20 annualized dividend and a yield of 1.5%. PennyMac Financial Services’s dividend payout ratio is 12.75%.

Insider Activity at PennyMac Financial Services

In related news, CEO David Spector sold 10,000 shares of the company’s stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $87.99, for a total value of $879,900.00. Following the transaction, the chief executive officer directly owned 60,604 shares of the company’s stock, valued at approximately $5,332,545.96. This represents a 14.16% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 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 that occurred on Friday, May 15th. The shares were sold at an average price of $87.50, for a total value of $255,937.50. Following the completion of the transaction, the chief financial officer directly owned 210,625 shares in the company, valued at $18,429,687.50. This trade represents a 1.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 22,925 shares of company stock worth $2,064,138 over the last ninety days. 15.80% of the stock is currently owned by insiders.

Institutional Investors Weigh In On PennyMac Financial Services

Several institutional investors and hedge funds have recently added to or reduced their stakes in PFSI. AQR Capital Management LLC boosted its holdings in PennyMac Financial Services by 3.8% in the first quarter. AQR Capital Management LLC now owns 24,012 shares of the real estate investment trust’s stock worth $2,404,000 after purchasing an additional 875 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in PennyMac Financial Services by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,923 shares of the real estate investment trust’s stock worth $1,594,000 after purchasing an additional 706 shares during the last quarter. Intech Investment Management LLC boosted its holdings in PennyMac Financial Services by 5.8% in the first quarter. Intech Investment Management LLC now owns 15,382 shares of the real estate investment trust’s stock worth $1,540,000 after purchasing an additional 840 shares during the last quarter. Strs Ohio purchased a new stake in PennyMac Financial Services in the first quarter worth approximately $30,000. Finally, Prudential Financial Inc. boosted its holdings in PennyMac Financial Services by 82.8% in the second quarter. Prudential Financial Inc. now owns 4,084 shares of the real estate investment trust’s stock worth $413,000 after purchasing an additional 1,850 shares during the last quarter. Hedge funds and other institutional investors own 57.87% of the company’s stock.

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.