PennyMac Financial Services (NYSE:PFSI) Reaches New 1-Year Low – Should You Sell?

Shares of PennyMac Financial Services, Inc. (NYSE:PFSI) hit a new 52-week low during trading on Wednesday. The stock traded as low as $60.64 and last traded at $60.4830, with a volume of 74333 shares. The stock had previously closed at $62.76.

Analyst Upgrades and Downgrades

PFSI has been the subject of a number of research analyst reports. Keefe, Bruyette & Woods cut their price objective on PennyMac Financial Services from $108.00 to $100.00 and set an “outperform” rating for the company in a research report on Friday, July 31st. Piper Sandler downgraded PennyMac Financial Services from an “overweight” rating to a “neutral” rating and decreased their target price for the stock from $106.00 to $86.00 in a research report on Thursday, July 30th. BTIG Research dropped their price target on PennyMac Financial Services from $105.00 to $90.00 and set a “buy” rating for the company in a research note on Thursday, July 30th. Barclays cut their price target on PennyMac Financial Services from $85.00 to $71.00 and set an “equal weight” rating for the company in a report on Monday. Finally, Stephens reduced their price objective on PennyMac Financial Services from $91.00 to $78.00 and set an “equal weight” rating on the stock in a research note on Thursday, July 30th. Four equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $103.12.

PennyMac Financial Services Stock Performance

The business’s fifty day moving average price is $70.83 and its two-hundred day moving average price is $80.61. The company has a debt-to-equity ratio of 3.22, a quick ratio of 0.38 and a current ratio of 0.38. The stock has a market capitalization of $3.19 billion, a P/E ratio of 8.44, a P/E/G ratio of 0.57 and a beta of 1.45.

PennyMac Financial Services (NYSE:PFSI) last announced its quarterly earnings results on Wednesday, July 29th. The real estate investment trust reported $1.39 EPS for the quarter, missing analysts’ consensus estimates of $2.11 by ($0.72). The business had revenue of $496.96 million during the quarter, compared to the consensus estimate of $571.60 million. PennyMac Financial Services had a net margin of 17.74% and a return on equity of 11.18%. The firm’s revenue was up 11.8% on a year-over-year basis. During the same period in the previous year, the business posted $2.54 EPS. As a group, sell-side analysts forecast that PennyMac Financial Services, Inc. will post 7.36 earnings per share for the current year.

PennyMac Financial Services Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 27th. Stockholders of record on Monday, August 17th were paid a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend was Monday, August 17th. PennyMac Financial Services’s dividend payout ratio (DPR) is presently 16.48%.

Institutional Trading of PennyMac Financial Services

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. GAMMA Investing LLC lifted its position in PennyMac Financial Services by 313.2% in the third quarter. GAMMA Investing LLC now owns 438 shares of the real estate investment trust’s stock worth $27,000 after buying an additional 332 shares during the last quarter. Versant Capital Management Inc bought a new position in PennyMac Financial Services during the third quarter valued at $71,000. QRG Capital Management Inc. raised its stake in shares of PennyMac Financial Services by 7.5% in the second quarter. QRG Capital Management Inc. now owns 3,881 shares of the real estate investment trust’s stock valued at $338,000 after acquiring an additional 271 shares during the period. BlueCrest Capital Management Ltd raised its stake in shares of PennyMac Financial Services by 12.8% in the second quarter. BlueCrest Capital Management Ltd now owns 396,103 shares of the real estate investment trust’s stock valued at $34,501,000 after acquiring an additional 45,008 shares during the period. Finally, Nykredit A S bought a new stake in shares of PennyMac Financial Services in the 2nd quarter worth about $195,000. Hedge funds and other institutional investors own 57.87% of the company’s stock.

PennyMac Financial Services Company Profile

PennyMac Financial Services, Inc (NYSE:PFSI) is a financial services company focused on the U.S. residential mortgage market. Through its operating subsidiaries, the company originates, acquires, services and manages investments in residential mortgage loans and related assets.

PennyMac’s business includes mortgage loan production through correspondent and consumer-direct channels, mortgage servicing and loan administration, and investment management activities. Its services support homeowners, mortgage originators and institutional investors across the residential lending lifecycle, including loan fulfillment, servicing and asset management.

The company was established in 2008 and serves customers and business partners throughout the United States.