PennyMac Financial Services (NYSE:PFSI) Shares Gap Down Following Analyst Downgrade

Shares of PennyMac Financial Services, Inc. (NYSE:PFSI) gapped down prior to trading on Thursday after StockNews.com downgraded the stock from a hold rating to a sell rating. The stock had previously closed at $92.07, but opened at $85.32. PennyMac Financial Services shares last traded at $85.85, with a volume of 297,138 shares.

PFSI has been the topic of a number of other reports. Barclays raised their target price on PennyMac Financial Services from $103.00 to $112.00 and gave the stock an “overweight” rating in a report on Tuesday, April 9th. Wedbush reaffirmed an “outperform” rating and issued a $110.00 target price on shares of PennyMac Financial Services in a report on Thursday. Deutsche Bank Aktiengesellschaft decreased their target price on PennyMac Financial Services from $115.00 to $112.00 and set a “buy” rating on the stock in a report on Thursday. Finally, Keefe, Bruyette & Woods raised PennyMac Financial Services from a “market perform” rating to an “outperform” rating and raised their target price for the stock from $100.00 to $105.00 in a report on Tuesday, April 9th. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating and six have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, PennyMac Financial Services presently has an average rating of “Moderate Buy” and an average price target of $98.38.

Insider Buying and Selling at PennyMac Financial Services

In other PennyMac Financial Services news, insider James Follette sold 2,617 shares of the firm’s stock in a transaction dated Tuesday, February 27th. The stock was sold at an average price of $86.24, for a total transaction of $225,690.08. Following the sale, the insider now directly owns 7,257 shares of the company’s stock, valued at $625,843.68. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. In other news, insider James Follette sold 2,617 shares of the firm’s stock in a transaction dated Tuesday, February 27th. The stock was sold at an average price of $86.24, for a total transaction of $225,690.08. Following the completion of the transaction, the insider now owns 7,257 shares in the company, valued at $625,843.68. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO David Spector sold 10,000 shares of PennyMac Financial Services stock in a transaction dated Tuesday, April 9th. The stock was sold at an average price of $90.72, for a total value of $907,200.00. Following the completion of the transaction, the chief executive officer now owns 250,604 shares of the company’s stock, valued at approximately $22,734,794.88. The disclosure for this sale can be found here. Insiders have sold a total of 87,802 shares of company stock valued at $7,666,108 over the last ninety days. 17.40% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in PFSI. SG Americas Securities LLC grew its position in PennyMac Financial Services by 283.2% in the third quarter. SG Americas Securities LLC now owns 10,415 shares of the real estate investment trust’s stock worth $694,000 after acquiring an additional 7,697 shares in the last quarter. Exchange Traded Concepts LLC purchased a new position in shares of PennyMac Financial Services during the third quarter valued at approximately $57,000. Dakota Wealth Management purchased a new position in shares of PennyMac Financial Services during the third quarter valued at approximately $1,313,000. Bank of New York Mellon Corp boosted its position in shares of PennyMac Financial Services by 3.2% during the third quarter. Bank of New York Mellon Corp now owns 234,486 shares of the real estate investment trust’s stock valued at $15,617,000 after buying an additional 7,251 shares during the period. Finally, Zurcher Kantonalbank Zurich Cantonalbank boosted its position in shares of PennyMac Financial Services by 13.2% during the third quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 8,076 shares of the real estate investment trust’s stock valued at $538,000 after buying an additional 944 shares during the period. Hedge funds and other institutional investors own 57.87% of the company’s stock.

PennyMac Financial Services Stock Down 6.4 %

The company has a 50-day simple moving average of $87.95 and a 200-day simple moving average of $82.89. The firm has a market cap of $4.35 billion, a PE ratio of 31.81, a price-to-earnings-growth ratio of 0.61 and a beta of 1.67. The company has a debt-to-equity ratio of 1.90, a current ratio of 0.37 and a quick ratio of 0.37.

PennyMac Financial Services (NYSE:PFSI) last announced its earnings results on Wednesday, April 24th. The real estate investment trust reported $2.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.34 by $0.14. PennyMac Financial Services had a return on equity of 7.69% and a net margin of 10.32%. The business had revenue of $305.66 million during the quarter, compared to analyst estimates of $422.87 million. Analysts expect that PennyMac Financial Services, Inc. will post 10.41 earnings per share for the current fiscal year.

PennyMac Financial Services Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, February 23rd. Investors of record on Tuesday, February 13th were issued a $0.20 dividend. The ex-dividend date of this dividend was Monday, February 12th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.93%. PennyMac Financial Services’s payout ratio is 29.52%.

PennyMac Financial Services Company Profile

PennyMac Financial Services, Inc, through its subsidiaries, engages in the mortgage banking and investment management activities in the United States. The company operates through three segments: Production, Servicing, and Investment Management. The Production segment is involved in the origination, acquisition, and sale of loans.