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

PennyMac Financial Services, Inc. (NYSE:PFSI) has been given an average recommendation of “Moderate Buy” by the nine brokerages that are presently covering the stock, Marketbeat Ratings reports. Four equities research analysts have rated the stock with a hold rating and five have issued a buy rating on the company. The average 12-month price objective among brokerages that have updated their coverage on the stock in the last year is $145.4286.

Several equities analysts have recently weighed in on PFSI shares. Barclays upped their price objective 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. Keefe, Bruyette & Woods upped their price target on PennyMac Financial Services from $138.00 to $143.00 and gave the stock a “market perform” rating in a research note on Thursday, December 18th. Piper Sandler raised their price objective on PennyMac Financial Services from $140.00 to $146.00 and gave the company an “overweight” rating in a research note on Monday, December 22nd. Zacks Research upgraded PennyMac Financial Services to a “hold” rating in a report on Friday, December 19th. Finally, Jefferies Financial Group assumed coverage on PennyMac Financial Services in a report on Friday, December 19th. They issued a “buy” rating and a $160.00 target price on the stock.

Insider Activity at PennyMac Financial Services

In related news, Director Anne Mccallion sold 27,771 shares of the company’s stock in a transaction dated Friday, October 24th. The shares were sold at an average price of $131.55, for a total value of $3,653,275.05. Following the sale, the director owned 1,547 shares in the company, valued at $203,507.85. This represents a 94.72% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO David Spector sold 5,000 shares of the firm’s stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $129.81, for a total transaction of $649,050.00. Following the completion of the transaction, the chief executive officer directly owned 110,604 shares in the company, valued at approximately $14,357,505.24. The trade was a 4.33% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 208,129 shares of company stock valued at $26,957,567 over the last quarter. 15.80% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On PennyMac Financial Services

Several institutional investors have recently bought and sold shares of the stock. Invesco Ltd. lifted its stake in PennyMac Financial Services by 18.3% during the 3rd quarter. Invesco Ltd. now owns 1,463,096 shares of the real estate investment trust’s stock valued at $181,248,000 after acquiring an additional 226,581 shares in the last quarter. Millennium Management LLC raised its holdings in shares of PennyMac Financial Services by 48.8% in the first quarter. Millennium Management LLC now owns 771,605 shares of the real estate investment trust’s stock valued at $77,245,000 after purchasing an additional 253,031 shares during the last quarter. Geode Capital Management LLC lifted its position in shares of PennyMac Financial Services by 6.0% during the second quarter. Geode Capital Management LLC now owns 721,757 shares of the real estate investment trust’s stock valued at $71,924,000 after purchasing an additional 41,124 shares in the last quarter. Basswood Capital Management L.L.C. lifted its position in shares of PennyMac Financial Services by 5.9% during the second quarter. Basswood Capital Management L.L.C. now owns 570,210 shares of the real estate investment trust’s stock valued at $56,816,000 after purchasing an additional 31,743 shares in the last quarter. Finally, 140 Summer Partners LP purchased a new position in PennyMac Financial Services during the third quarter worth about $55,268,000. Institutional investors own 57.87% of the company’s stock.

PennyMac Financial Services Price Performance

PennyMac Financial Services stock opened at $131.46 on Monday. The stock has a market capitalization of $6.83 billion, a price-to-earnings ratio of 14.17, a PEG ratio of 0.60 and a beta of 1.57. PennyMac Financial Services has a 52-week low of $85.74 and a 52-week high of $137.53. The company has a debt-to-equity ratio of 3.01, a quick ratio of 0.36 and a current ratio of 0.36. The stock’s 50 day moving average price is $130.10 and its two-hundred day moving average price is $116.95.

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

PennyMac Financial Services Dividend Announcement

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