PennyMac Financial Services (NYSE:PFSI) Stock Rating Lowered by Zacks Research

PennyMac Financial Services (NYSE:PFSI) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued on Tuesday,Zacks.com reports.

Several other research firms also recently commented on PFSI. Jefferies Financial Group began coverage on shares of PennyMac Financial Services in a research note on Friday, December 19th. They issued a “buy” rating and a $160.00 price target on the stock. Wall Street Zen downgraded PennyMac Financial Services from a “buy” rating to a “hold” rating in a report on Sunday, January 18th. Wells Fargo & Company lowered their target price on PennyMac Financial Services from $150.00 to $135.00 and set an “overweight” rating for the company in a report on Friday, January 30th. Keefe, Bruyette & Woods dropped their price target on PennyMac Financial Services from $143.00 to $115.00 and set a “market perform” rating on the stock in a research report on Monday. Finally, Piper Sandler decreased their price objective on PennyMac Financial Services from $168.00 to $137.00 and set an “overweight” rating for the company in a report on Friday, January 30th. Five analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $139.71.

PennyMac Financial Services Stock Performance

PFSI stock traded up $1.20 during midday trading on Tuesday, reaching $97.28. 1,054,690 shares of the company’s stock traded hands, compared to its average volume of 958,149. The company has a current ratio of 0.36, a quick ratio of 0.36 and a debt-to-equity ratio of 3.01. The stock’s 50-day moving average is $135.12 and its 200 day moving average is $123.03. The stock has a market cap of $5.06 billion, a P/E ratio of 10.46, a PEG ratio of 0.53 and a beta of 1.54. PennyMac Financial Services has a 52-week low of $85.74 and a 52-week high of $160.36.

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 (EPS) for the quarter, missing the consensus estimate of $3.23 by ($1.26). PennyMac Financial Services had a return on equity of 10.36% and a net margin of 24.48%.The firm had revenue of $538.01 million during the quarter, compared to analysts’ expectations of $639.81 million. During the same period in the prior year, the company posted $1.95 earnings per share. The company’s revenue was up 14.4% compared to the same quarter last year. As a group, analysts anticipate that PennyMac Financial Services will post 13.77 EPS for the current year.

Insider Activity at PennyMac Financial Services

In related news, Director Doug Jones sold 23,453 shares of PennyMac Financial Services stock in a transaction dated Monday, November 10th. The stock was sold at an average price of $127.56, for a total transaction of $2,991,664.68. Following the completion of the sale, the director owned 19,056 shares of the company’s stock, valued at $2,430,783.36. The trade was a 55.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO David Spector sold 10,000 shares of the stock in a transaction on Tuesday, January 13th. The stock was sold at an average price of $145.19, for a total transaction of $1,451,900.00. Following the completion of the sale, the chief executive officer owned 100,604 shares in the company, valued at $14,606,694.76. The trade was a 9.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 75,758 shares of company stock worth $9,967,733. 15.80% of the stock is owned by company insiders.

Hedge Funds Weigh In On PennyMac Financial Services

Hedge funds have recently bought and sold shares of the business. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of PennyMac Financial Services in the fourth quarter valued at approximately $402,000. Swiss Life Asset Management Ltd purchased a new position in PennyMac Financial Services in the 4th quarter valued at approximately $373,000. Sequoia Financial Advisors LLC acquired a new position in shares of PennyMac Financial Services in the fourth quarter worth $223,000. Strs Ohio grew its stake in shares of PennyMac Financial Services by 36.4% in the fourth quarter. Strs Ohio now owns 1,500 shares of the real estate investment trust’s stock worth $198,000 after acquiring an additional 400 shares in the last quarter. Finally, M&T Bank Corp acquired a new stake in shares of PennyMac Financial Services in the fourth quarter valued at $216,000. 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.