PennyMac Financial Services, Inc. (NYSE:PFSI) Receives Consensus Recommendation of “Moderate Buy” from Brokerages

PennyMac Financial Services, Inc. (NYSE:PFSIGet Free Report) has earned an average rating of “Moderate Buy” from the six research firms that are covering the company, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a hold rating and four have issued a buy rating on the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $111.50.

Several analysts recently commented on PFSI shares. Keefe, Bruyette & Woods downgraded shares of PennyMac Financial Services from an “outperform” rating to a “market perform” rating and set a $102.00 price target for the company. in a research report on Monday, July 22nd. Piper Sandler increased their target price on shares of PennyMac Financial Services from $112.00 to $125.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 1st. Wedbush boosted their price target on PennyMac Financial Services from $110.00 to $120.00 and gave the company an “outperform” rating in a research report on Wednesday, July 24th. Barclays lifted their target price on PennyMac Financial Services from $112.00 to $125.00 and gave the company an “overweight” rating in a research note on Tuesday. Finally, StockNews.com downgraded PennyMac Financial Services from a “hold” rating to a “sell” rating in a report on Wednesday, July 3rd.

Read Our Latest Stock Analysis on PFSI

PennyMac Financial Services Price Performance

PFSI opened at $106.18 on Friday. PennyMac Financial Services has a one year low of $62.15 and a one year high of $119.13. The company has a debt-to-equity ratio of 2.75, a quick ratio of 0.37 and a current ratio of 0.37. The stock has a market capitalization of $5.44 billion, a P/E ratio of 29.33, a price-to-earnings-growth ratio of 0.66 and a beta of 1.77. The business’s 50-day simple moving average is $105.93 and its 200-day simple moving average is $97.07.

PennyMac Financial Services (NYSE:PFSIGet Free Report) last released its quarterly earnings results on Tuesday, July 23rd. The real estate investment trust reported $1.85 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.65 by ($0.80). The firm had revenue of $406.13 million for the quarter, compared to analysts’ expectations of $469.64 million. PennyMac Financial Services had a return on equity of 12.69% and a net margin of 13.13%. The company’s quarterly revenue was up 20.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.11 EPS. Analysts anticipate that PennyMac Financial Services will post 11.06 EPS for the current year.

PennyMac Financial Services Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 23rd. Investors of record on Tuesday, August 13th were issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 1.13%. The ex-dividend date of this dividend was Tuesday, August 13th. This is a positive change from PennyMac Financial Services’s previous quarterly dividend of $0.20. PennyMac Financial Services’s dividend payout ratio is currently 33.15%.

Insiders Place Their Bets

In related news, insider Steven Richard Bailey sold 14,130 shares of the firm’s stock in a transaction dated Monday, September 16th. The shares were sold at an average price of $116.88, for a total value of $1,651,514.40. Following the completion of the sale, the insider now owns 14,670 shares in the company, valued at $1,714,629.60. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In other news, Director Joseph F. Mazzella sold 11,396 shares of the firm’s stock in a transaction on Wednesday, August 14th. The stock was sold at an average price of $97.92, for a total value of $1,115,896.32. Following the completion of the transaction, the director now owns 105,446 shares in the company, valued at $10,325,272.32. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Steven Richard Bailey sold 14,130 shares of PennyMac Financial Services stock in a transaction on Monday, September 16th. The stock was sold at an average price of $116.88, for a total value of $1,651,514.40. Following the transaction, the insider now directly owns 14,670 shares of the company’s stock, valued at $1,714,629.60. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 79,855 shares of company stock worth $8,571,899. 16.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On PennyMac Financial Services

Several hedge funds have recently added to or reduced their stakes in PFSI. Hexagon Capital Partners LLC raised its holdings in shares of PennyMac Financial Services by 29.6% in the second quarter. Hexagon Capital Partners LLC now owns 477 shares of the real estate investment trust’s stock worth $45,000 after acquiring an additional 109 shares during the last quarter. QRG Capital Management Inc. raised its stake in PennyMac Financial Services by 0.7% in the 1st quarter. QRG Capital Management Inc. now owns 33,892 shares of the real estate investment trust’s stock valued at $3,087,000 after purchasing an additional 232 shares during the last quarter. MorganRosel Wealth Management LLC raised its stake in PennyMac Financial Services by 2.2% in the 1st quarter. MorganRosel Wealth Management LLC now owns 10,811 shares of the real estate investment trust’s stock valued at $985,000 after purchasing an additional 236 shares during the last quarter. Arizona State Retirement System lifted its holdings in PennyMac Financial Services by 2.9% in the 2nd quarter. Arizona State Retirement System now owns 11,999 shares of the real estate investment trust’s stock valued at $1,135,000 after purchasing an additional 336 shares in the last quarter. Finally, ProShare Advisors LLC boosted its stake in shares of PennyMac Financial Services by 8.5% during the 1st quarter. ProShare Advisors LLC now owns 4,587 shares of the real estate investment trust’s stock worth $418,000 after purchasing an additional 361 shares during the last quarter. 57.87% of the stock is currently owned by hedge funds and other institutional investors.

About PennyMac Financial Services

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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.

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Analyst Recommendations for PennyMac Financial Services (NYSE:PFSI)

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