PennyMac Financial Services (NYSE:PFSI) Price Target Cut to $115.00 by Analysts at Keefe, Bruyette & Woods

PennyMac Financial Services (NYSE:PFSI) had its price objective decreased by Keefe, Bruyette & Woods from $143.00 to $115.00 in a research note released on Monday morning,Benzinga reports. Keefe, Bruyette & Woods currently has a market perform rating on the real estate investment trust’s stock.

PFSI has been the subject of several other reports. Piper Sandler reduced their target price on PennyMac Financial Services from $168.00 to $137.00 and set an “overweight” rating for the company in a research note on Friday. BTIG Research reaffirmed a “buy” rating on shares of PennyMac Financial Services in a report on Friday. Barclays decreased their price objective on shares of PennyMac Financial Services from $158.00 to $136.00 and set an “overweight” rating for the company in a report on Friday. Weiss Ratings downgraded shares of PennyMac Financial Services from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, January 20th. Finally, UBS Group increased their price target on shares of PennyMac Financial Services from $135.00 to $145.00 and gave the stock a “neutral” rating in a research report on Friday, October 24th. Five investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $139.71.

PennyMac Financial Services Stock Performance

NYSE:PFSI opened at $93.05 on Monday. The firm has a 50-day moving average of $136.74 and a two-hundred day moving average of $123.28. 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 stock has a market cap of $4.84 billion, a P/E ratio of 10.01, a PEG ratio of 0.46 and a beta of 1.55. PennyMac Financial Services has a 1-year low of $85.74 and a 1-year high of $160.36.

PennyMac Financial Services (NYSE:PFSI) last released its quarterly earnings results on Thursday, January 29th. The real estate investment trust reported $1.97 EPS for the quarter, missing the consensus estimate of $3.23 by ($1.26). The business had revenue of $538.01 million during the quarter, compared to analyst estimates of $639.81 million. PennyMac Financial Services had a return on equity of 10.36% and a net margin of 24.48%.The company’s revenue was up 14.4% compared to the same quarter last year. During the same quarter last year, the firm posted $1.95 EPS. On average, research analysts expect that PennyMac Financial Services will post 13.77 earnings per share for the current fiscal year.

PennyMac Financial Services Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, February 26th. Shareholders of record on Monday, February 16th will be issued a $0.30 dividend. The ex-dividend date of this dividend is Friday, February 13th. This represents a $1.20 dividend on an annualized basis and a yield of 1.3%. PennyMac Financial Services’s dividend payout ratio (DPR) is currently 12.90%.

Insider Buying and Selling

In other news, CAO Gregory L. Hendry sold 3,530 shares of the stock in a transaction that occurred on Thursday, December 18th. The stock was sold at an average price of $131.64, for a total transaction of $464,689.20. Following the sale, the chief accounting officer directly owned 48,633 shares in the company, valued at approximately $6,402,048.12. This represents a 6.77% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Daniel Stanley Perotti sold 8,775 shares of the business’s stock in a transaction that occurred on Monday, November 17th. The shares were sold at an average price of $126.67, for a total value of $1,111,529.25. Following the transaction, the chief financial officer owned 216,475 shares of the company’s stock, valued at $27,420,888.25. This represents a 3.90% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 80,076 shares of company stock valued at $10,512,190 over the last three months. 15.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. EverSource Wealth Advisors LLC bought a new stake in shares of PennyMac Financial Services during the second quarter valued at about $26,000. GAMMA Investing LLC lifted its stake in shares of PennyMac Financial Services by 97.3% in the 4th quarter. GAMMA Investing LLC now owns 288 shares of the real estate investment trust’s stock worth $38,000 after acquiring an additional 142 shares during the period. Strs Ohio bought a new position in shares of PennyMac Financial Services in the first quarter valued at approximately $30,000. Harbor Capital Advisors Inc. increased its stake in shares of PennyMac Financial Services by 26.3% during the third quarter. Harbor Capital Advisors Inc. now owns 504 shares of the real estate investment trust’s stock valued at $62,000 after acquiring an additional 105 shares during the period. Finally, CWM LLC raised its holdings in PennyMac Financial Services by 92.7% during the third quarter. CWM LLC now owns 555 shares of the real estate investment trust’s stock worth $69,000 after purchasing an additional 267 shares in the last quarter. Institutional investors own 57.87% of the company’s stock.

Key Headlines Impacting PennyMac Financial Services

Here are the key news stories impacting PennyMac Financial Services this week:

• Neutral Sentiment: Volatility tied to MSR realization and prepayments: Management said pretax income excluding valuation items fell sharply (driven by increased realization of MSR cash flows as lower rates boosted prepayments), increasing earnings volatility and uncertainty about near‑term performance. INVESTOR ALERT: Investigation of PennyMac Financial Services, Inc. (PFSI) by Holzer & Holzer, LLC
• Neutral Sentiment: Unusually large options and trading activity—elevated options volume and a post‑earnings gap down signal heavier positioning and short‑term trader interest, which can amplify price moves. PennyMac Financial Services Sees Unusually Large Options Volume (NYSE:PFSI)
• Negative Sentiment: Quarterly earnings and revenue missed expectations—PennyMac reported a significant EPS and revenue shortfall versus consensus for the quarter, which prompted the initial sell‑off and reassessment of near‑term profitability. PennyMac Financial Services (NYSE:PFSI) Shares Gap Down After Earnings Miss
• Negative Sentiment: Multiple securities‑fraud investigations opened—Several law firms have announced investigations and investor alerts alleging possible disclosure issues tied to the quarter and MSR/refinancing matters; that raises legal and settlement risk and increases uncertainty for holders. PennyMac Financial Services, Inc. (PFSI) Shareholders Who Lost Money – Contact Law Offices of Howard G. Smith About Securities Fraud Investigation Securities Fraud Investigation Into PennyMac Financial Services, Inc. (PFSI) Announced – Shareholders Who Lost Money Urged To Contact The Law Offices of Frank R. Cruz PFSI NOTIFICATION: PennyMac Financial Services, Inc. Investigated for Securities Misconduct Over Refinancing Issues PFSI Investor News: If You Have Suffered Losses in PennyMac Financial Services, Inc. (NYSE: PFSI), You Are Encouraged to Contact The Rosen Law Firm About Your Rights
• Negative Sentiment: Analyst target cuts and lower ratings—Banks and research shops have trimmed price targets (e.g., Keefe, Bruyette & Woods and Wells Fargo), signaling reduced near‑term upside and reinforcing selling pressure. Keefe, Bruyette & Woods Lowers Price Target on PFSI Wells Fargo & Company Cuts PennyMac Financial Services (NYSE:PFSI) Price Target to $135.00

PennyMac Financial Services Company Profile

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.