PennyMac Financial Services (NYSE:PFSI) Sets New 12-Month Low – Here’s Why

PennyMac Financial Services, Inc. (NYSE:PFSI) reached a new 52-week low on Friday . The company traded as low as $84.10 and last traded at $84.4710, with a volume of 222780 shares trading hands. The stock had previously closed at $84.61.

Wall Street Analyst Weigh In

Several analysts have issued reports on PFSI shares. Wall Street Zen lowered shares of PennyMac Financial Services from a “buy” rating to a “hold” rating in a research report on Sunday, January 18th. Jefferies Financial Group assumed coverage on shares of PennyMac Financial Services in a research report on Friday, December 19th. They issued a “buy” rating and a $160.00 target price for the company. Wells Fargo & Company lowered their price objective on PennyMac Financial Services from $150.00 to $135.00 and set an “overweight” rating for the company in a research report on Friday, January 30th. Keefe, Bruyette & Woods reduced their price objective on PennyMac Financial Services from $143.00 to $115.00 and set a “market perform” rating for the company in a research report on Monday, February 2nd. Finally, BTIG Research reissued a “buy” rating on shares of PennyMac Financial Services in a research report on Friday, January 30th. Five analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $139.71.

PennyMac Financial Services Trading Down 0.6%

The stock’s fifty day simple moving average is $113.84 and its 200 day simple moving average is $121.25. The firm has a market capitalization of $4.39 billion, a PE ratio of 9.03, a PEG ratio of 0.50 and a beta of 1.56. The company has a quick ratio of 0.34, a current ratio of 0.34 and a debt-to-equity ratio of 3.32.

PennyMac Financial Services (NYSE:PFSI) last released its earnings results on Thursday, January 29th. The real estate investment trust reported $1.97 earnings per share for the quarter, missing the consensus estimate of $3.23 by ($1.26). The company had revenue of $538.01 million for the quarter, compared to analysts’ expectations of $639.81 million. PennyMac Financial Services had a net margin of 24.48% and a return on equity of 10.20%. PennyMac Financial Services’s revenue for the quarter was up 14.4% on a year-over-year basis. During the same quarter last year, the firm posted $1.95 earnings per share. On average, sell-side analysts predict that PennyMac Financial Services, Inc. will post 13.77 earnings per share for the current year.

PennyMac Financial Services Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, February 26th. Stockholders of record on Monday, February 16th were issued a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend was Friday, February 13th. PennyMac Financial Services’s dividend payout ratio is 12.90%.

Insiders Place Their Bets

In other news, CEO David Spector sold 12,436 shares of the business’s stock in a transaction dated Friday, March 6th. The shares were sold at an average price of $86.39, for a total value of $1,074,346.04. Following the sale, the chief executive officer directly owned 529,401 shares in the company, valued at $45,734,952.39. The trade was a 2.30% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Derek Stark sold 1,903 shares of the business’s stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $91.50, for a total value of $174,124.50. Following the transaction, the insider directly owned 22,477 shares in the company, valued at approximately $2,056,645.50. This represents a 7.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 59,810 shares of company stock worth $6,268,192. Insiders own 15.80% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in PFSI. Vise Technologies Inc. bought a new position in PennyMac Financial Services during the 2nd quarter worth about $383,000. Creative Planning boosted its position in shares of PennyMac Financial Services by 89.5% in the 2nd quarter. Creative Planning now owns 13,495 shares of the real estate investment trust’s stock worth $1,345,000 after purchasing an additional 6,374 shares in the last quarter. American Century Companies Inc. grew its stake in shares of PennyMac Financial Services by 15.0% during the second quarter. American Century Companies Inc. now owns 399,388 shares of the real estate investment trust’s stock worth $39,795,000 after acquiring an additional 52,227 shares during the last quarter. Rhumbline Advisers increased its stake in PennyMac Financial Services by 27.7% during the 2nd quarter. Rhumbline Advisers now owns 53,906 shares of the real estate investment trust’s stock valued at $5,371,000 after purchasing an additional 11,698 shares in the last quarter. Finally, Geode Capital Management LLC increased its position in shares of PennyMac Financial Services by 6.0% in the 2nd quarter. Geode Capital Management LLC now owns 721,757 shares of the real estate investment trust’s stock valued at $71,924,000 after acquiring an additional 41,124 shares during the period. 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.