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 during mid-day trading on Tuesday . The company traded as low as $71.67 and last traded at $71.7850, with a volume of 115103 shares changing hands. The stock had previously closed at $73.11.

Wall Street Analysts Forecast Growth

PFSI has been the subject of a number of research analyst reports. Zacks Research lowered shares of PennyMac Financial Services from a “hold” rating to a “strong sell” rating in a research note on Friday, May 8th. Piper Sandler downgraded shares of PennyMac Financial Services from an “overweight” rating to a “neutral” rating and reduced their price objective for the company from $106.00 to $86.00 in a research note on Thursday, July 30th. Wells Fargo & Company dropped their target price on shares of PennyMac Financial Services from $100.00 to $95.00 and set an “overweight” rating for the company in a research report on Thursday, July 30th. Wall Street Zen lowered shares of PennyMac Financial Services from a “hold” rating to a “sell” rating in a research note on Saturday, August 1st. Finally, BTIG Research reduced their price target on shares of PennyMac Financial Services from $105.00 to $90.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. Four equities research analysts have rated the stock with a Buy rating, four have issued 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 a consensus target price of $104.88.

PennyMac Financial Services Stock Performance

The company has a market cap of $3.71 billion, a P/E ratio of 9.80, a PEG ratio of 0.69 and a beta of 1.45. The company has a quick ratio of 0.38, a current ratio of 0.38 and a debt-to-equity ratio of 3.22. The company has a 50 day moving average price of $80.21 and a 200-day moving average price of $85.12.

PennyMac Financial Services (NYSE:PFSI) last released its earnings results on Wednesday, July 29th. The real estate investment trust reported $1.39 earnings per share for the quarter, missing analysts’ consensus estimates of $2.11 by ($0.72). PennyMac Financial Services had a return on equity of 11.18% and a net margin of 17.74%.During the same period last year, the company earned $2.54 earnings per share. The firm’s quarterly revenue was up 11.8% compared to the same quarter last year. Equities analysts expect that PennyMac Financial Services, Inc. will post 7.36 EPS for the current fiscal year.

PennyMac Financial Services Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, August 27th. Stockholders of record on Monday, August 17th were given a dividend of $0.30 per share. The ex-dividend date of this dividend was Monday, August 17th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.7%. PennyMac Financial Services’s payout ratio is 16.48%.

Insider Activity at PennyMac Financial Services

In related news, CAO Gregory L. Hendry sold 2,943 shares of PennyMac Financial Services stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $81.71, for a total value of $240,472.53. Following the transaction, the chief accounting officer owned 48,968 shares in the company, valued at $4,001,175.28. This trade represents a 5.67% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 15.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On PennyMac Financial Services

Institutional investors have recently made changes to their positions in the business. MFN Partners Management LP acquired a new position in shares of PennyMac Financial Services during the second quarter worth approximately $394,719,083. California State Teachers Retirement System grew its position in PennyMac Financial Services by 8,156.5% during the second quarter. California State Teachers Retirement System now owns 3,011,483 shares of the real estate investment trust’s stock worth $262,300,000 after buying an additional 2,975,009 shares in the last quarter. Vanguard Group Inc. lifted its position in shares of PennyMac Financial Services by 0.5% in the 4th quarter. Vanguard Group Inc. now owns 2,832,737 shares of the real estate investment trust’s stock worth $373,468,000 after acquiring an additional 12,782 shares during the period. BlackRock Inc. bought a new stake in PennyMac Financial Services in the 2nd quarter valued at $202,735,000. Finally, Dimensional Fund Advisors LP raised its position in PennyMac Financial Services by 7.1% in the first quarter. Dimensional Fund Advisors LP now owns 1,916,271 shares of the real estate investment trust’s stock worth $167,474,000 after purchasing an additional 126,902 shares in the last quarter. 57.87% of the stock is currently owned by 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.