StockNews.com Downgrades PennyMac Financial Services (NYSE:PFSI) to Sell

PennyMac Financial Services (NYSE:PFSI) was downgraded by StockNews.com from a “hold” rating to a “sell” rating in a research report issued on Thursday.

PFSI has been the topic of several other reports. Keefe, Bruyette & Woods raised shares of PennyMac Financial Services from a “market perform” rating to an “outperform” rating and raised their target price for the company from $100.00 to $105.00 in a report on Tuesday, April 9th. Barclays raised their target price on shares of PennyMac Financial Services from $103.00 to $112.00 and gave the company an “overweight” rating in a report on Tuesday, April 9th. Deutsche Bank Aktiengesellschaft reduced their price target on shares of PennyMac Financial Services from $115.00 to $112.00 and set a “buy” rating on the stock in a research note on Thursday. Finally, Wedbush restated an “outperform” rating and issued a $110.00 price target on shares of PennyMac Financial Services in a research note on Thursday. One analyst has rated the stock with a sell rating, one has issued a hold rating and six have assigned a buy rating to the company. According to data from MarketBeat.com, PennyMac Financial Services has a consensus rating of “Moderate Buy” and a consensus target price of $97.75.

PennyMac Financial Services Price Performance

PFSI stock opened at $87.01 on Thursday. The company has a quick ratio of 0.37, a current ratio of 0.37 and a debt-to-equity ratio of 1.90. PennyMac Financial Services has a 12 month low of $56.16 and a 12 month high of $94.78. The firm has a market cap of $4.39 billion, a P/E ratio of 30.21, a P/E/G ratio of 0.61 and a beta of 1.67. The company’s 50-day moving average price is $87.83 and its two-hundred day moving average price is $83.05.

PennyMac Financial Services (NYSE:PFSI) last released its earnings results on Wednesday, April 24th. The real estate investment trust reported $2.48 EPS for the quarter, beating the consensus estimate of $2.34 by $0.14. PennyMac Financial Services had a net margin of 10.94% and a return on equity of 10.51%. The firm had revenue of $305.66 million for the quarter, compared to analyst estimates of $422.87 million. On average, analysts anticipate that PennyMac Financial Services will post 10.41 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO David Spector sold 10,000 shares of PennyMac Financial Services stock in a transaction that occurred on Tuesday, April 9th. The shares were sold at an average price of $90.72, for a total transaction of $907,200.00. Following the sale, the chief executive officer now directly owns 250,604 shares in the company, valued at approximately $22,734,794.88. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. In related news, CEO David Spector sold 10,000 shares of PennyMac Financial Services stock in a transaction that occurred on Tuesday, April 9th. The shares were sold at an average price of $90.72, for a total transaction of $907,200.00. Following the sale, the chief executive officer now directly owns 250,604 shares in the company, valued at approximately $22,734,794.88. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Doug Jones sold 17,079 shares of the firm’s stock in a transaction that occurred on Monday, March 11th. The stock was sold at an average price of $86.10, for a total transaction of $1,470,501.90. Following the transaction, the director now owns 23,892 shares of the company’s stock, valued at approximately $2,057,101.20. The disclosure for this sale can be found here. Insiders have sold a total of 87,802 shares of company stock worth $7,666,108 in the last ninety days. Company insiders own 17.40% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Norges Bank bought a new stake in shares of PennyMac Financial Services in the 4th quarter valued at $31,258,000. Boston Partners bought a new stake in shares of PennyMac Financial Services in the 4th quarter valued at $28,191,000. Jacobs Levy Equity Management Inc. bought a new stake in shares of PennyMac Financial Services in the 3rd quarter valued at $17,242,000. Invesco Ltd. increased its stake in shares of PennyMac Financial Services by 47.6% in the 3rd quarter. Invesco Ltd. now owns 490,297 shares of the real estate investment trust’s stock valued at $32,654,000 after acquiring an additional 158,181 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its stake in shares of PennyMac Financial Services by 2.7% in the 4th quarter. Dimensional Fund Advisors LP now owns 2,691,512 shares of the real estate investment trust’s stock valued at $237,851,000 after acquiring an additional 70,178 shares in the last quarter. Institutional investors own 57.87% of the company’s stock.

About PennyMac Financial Services

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.