PennyMac Financial Services (NYSE:PFSI) Shares Down 7.2% After Analyst Downgrade

PennyMac Financial Services, Inc. (NYSE:PFSI) shares traded down 7.2% during mid-day trading on Monday after Keefe, Bruyette & Woods lowered their price target on the stock from $143.00 to $115.00. Keefe, Bruyette & Woods currently has a market perform rating on the stock. PennyMac Financial Services traded as low as $91.87 and last traded at $92.73. 705,061 shares changed hands during trading, a decline of 1% from the average session volume of 709,104 shares. The stock had previously closed at $99.92.

A number of other research analysts have also issued reports on the stock. BTIG Research reissued a “buy” rating on shares of PennyMac Financial Services in a research note on Friday. Zacks Research upgraded PennyMac Financial Services to a “hold” rating in a research report on Friday, December 19th. Jefferies Financial Group assumed coverage on PennyMac Financial Services in a research report on Friday, December 19th. They issued a “buy” rating and a $160.00 target price on the stock. Wells Fargo & Company cut their target price on PennyMac Financial Services from $150.00 to $135.00 and set an “overweight” rating on the stock in a research note on Friday. Finally, Weiss Ratings cut PennyMac Financial Services from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, January 20th. Five analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, PennyMac Financial Services currently has a consensus rating of “Moderate Buy” and an average price target of $139.71.

Insider Transactions at PennyMac Financial Services

In other news, CAO Gregory L. Hendry sold 3,530 shares of the company’s stock in a transaction on Thursday, December 18th. The stock was sold at an average price of $131.64, for a total value of $464,689.20. Following the completion of the sale, the chief accounting officer owned 48,633 shares in the company, valued at $6,402,048.12. This represents a 6.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Doug Jones sold 23,453 shares of the firm’s stock in a transaction dated Monday, November 10th. The shares were sold at an average price of $127.56, for a total value of $2,991,664.68. Following the transaction, the director directly owned 19,056 shares of the company’s stock, valued at $2,430,783.36. This represents a 55.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 80,076 shares of company stock valued at $10,512,190 in the last quarter. Company insiders own 15.80% of the company’s stock.

Trending Headlines about 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

Institutional Trading of PennyMac Financial Services

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its position in PennyMac Financial Services by 0.5% in the fourth quarter. Vanguard Group Inc. now owns 2,832,737 shares of the real estate investment trust’s stock worth $373,468,000 after buying an additional 12,782 shares during the last quarter. Invesco Ltd. grew its holdings in shares of PennyMac Financial Services by 18.3% in the 3rd quarter. Invesco Ltd. now owns 1,463,096 shares of the real estate investment trust’s stock worth $181,248,000 after acquiring an additional 226,581 shares during the last quarter. Geode Capital Management LLC raised 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 worth $71,924,000 after purchasing an additional 41,124 shares during the period. Basswood Capital Management L.L.C. lifted its holdings 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 during the last quarter. Finally, 140 Summer Partners LP acquired a new position in shares of PennyMac Financial Services in the 3rd quarter valued at $55,268,000. 57.87% of the stock is owned by institutional investors and hedge funds.

PennyMac Financial Services Price Performance

The stock has a 50-day moving average of $136.74 and a two-hundred day moving average of $123.28. The firm has a market cap of $4.84 billion, a price-to-earnings ratio of 10.01, a price-to-earnings-growth ratio of 0.46 and a beta of 1.55. The company has a current ratio of 0.36, a quick ratio of 0.36 and a debt-to-equity ratio of 3.01.

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

PennyMac Financial Services Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, February 26th. Shareholders of record on Monday, February 16th will be given a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 1.3%. The ex-dividend date is Friday, February 13th. PennyMac Financial Services’s payout ratio is presently 12.90%.

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.