PennyMac Financial Services (NYSE:PFSI) Reaches New 1-Year High on Analyst Upgrade

PennyMac Financial Services, Inc. (NYSE:PFSI) shares reached a new 52-week high on Friday after Keefe, Bruyette & Woods raised their price target on the stock from $138.00 to $143.00. Keefe, Bruyette & Woods currently has a market perform rating on the stock. PennyMac Financial Services traded as high as $137.53 and last traded at $136.3920, with a volume of 74717 shares traded. The stock had previously closed at $132.41.

PFSI has been the subject of a number of other reports. BTIG Research reaffirmed a “buy” rating and set a $135.00 price objective on shares of PennyMac Financial Services in a report on Wednesday, October 22nd. Wells Fargo & Company upped their target price on shares of PennyMac Financial Services from $115.00 to $135.00 and gave the stock an “overweight” rating in a research report on Wednesday, October 22nd. Barclays lifted their price target on shares of PennyMac Financial Services from $136.00 to $139.00 and gave the company an “overweight” rating in a report on Wednesday, October 22nd. Wall Street Zen upgraded shares of PennyMac Financial Services from a “hold” rating to a “buy” rating in a research note on Saturday, November 1st. Finally, Piper Sandler raised their price objective on PennyMac Financial Services from $136.00 to $140.00 and gave the company an “overweight” rating in a research report on Wednesday, October 22nd. Five equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $142.43.

Insiders Place Their Bets

In other PennyMac Financial Services news, Director Doug Jones sold 23,453 shares of the stock in a transaction on Monday, November 10th. The stock was sold at an average price of $127.56, for a total value of $2,991,664.68. Following the sale, the director owned 19,056 shares in the company, valued at $2,430,783.36. This trade represents a 55.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Daniel Stanley Perotti sold 26,011 shares of PennyMac Financial Services stock in a transaction dated Friday, October 24th. The shares were sold at an average price of $131.36, for a total transaction of $3,416,804.96. Following the sale, the chief financial officer owned 9,964 shares of the company’s stock, valued at $1,308,871.04. The trade was a 72.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 218,129 shares of company stock worth $28,164,517. Insiders own 15.80% of the company’s stock.

Institutional Trading of PennyMac Financial Services

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Harbor Capital Advisors Inc. boosted its holdings in shares of PennyMac Financial Services by 26.3% in the 3rd quarter. Harbor Capital Advisors Inc. now owns 504 shares of the real estate investment trust’s stock valued at $62,000 after buying an additional 105 shares in the last quarter. AlphaQuest LLC raised its stake in shares of PennyMac Financial Services by 4.4% during the 1st quarter. AlphaQuest LLC now owns 2,587 shares of the real estate investment trust’s stock worth $259,000 after acquiring an additional 110 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in PennyMac Financial Services by 0.7% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 16,034 shares of the real estate investment trust’s stock valued at $1,598,000 after acquiring an additional 111 shares during the last quarter. Sei Investments Co. lifted its position in PennyMac Financial Services by 0.7% during the third quarter. Sei Investments Co. now owns 22,145 shares of the real estate investment trust’s stock valued at $2,743,000 after acquiring an additional 146 shares during the last quarter. Finally, CANADA LIFE ASSURANCE Co boosted its stake in PennyMac Financial Services by 1.0% in the third quarter. CANADA LIFE ASSURANCE Co now owns 16,236 shares of the real estate investment trust’s stock valued at $2,026,000 after acquiring an additional 163 shares in the last quarter. Institutional investors own 57.87% of the company’s stock.

PennyMac Financial Services Stock Up 1.1%

The company’s fifty day simple moving average is $127.98 and its 200-day simple moving average is $114.06. The company has a debt-to-equity ratio of 3.01, a current ratio of 0.36 and a quick ratio of 0.36. The firm has a market capitalization of $6.96 billion, a PE ratio of 14.43 and a beta of 1.58.

PennyMac Financial Services (NYSE:PFSI) last issued its quarterly earnings results on Tuesday, October 21st. The real estate investment trust reported $3.37 earnings per share for the quarter, topping the consensus estimate of $2.98 by $0.39. PennyMac Financial Services had a return on equity of 11.69% and a net margin of 25.21%.The business had revenue of $632.90 million during the quarter, compared to the consensus estimate of $573.46 million. During the same quarter last year, the company earned $1.30 earnings per share. The company’s quarterly revenue was up 53.7% on a year-over-year basis. On average, analysts forecast that PennyMac Financial Services, Inc. will post 13.77 EPS for the current year.

PennyMac Financial Services Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, November 26th. Shareholders of record on Monday, November 17th were given a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend was Monday, November 17th. PennyMac Financial Services’s dividend payout ratio (DPR) is currently 12.93%.

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.