PennyMac Financial Services (NYSE:PFSI) Sets New 52-Week Low – Should You Sell?

PennyMac Financial Services, Inc. (NYSE:PFSI) shares hit a new 52-week low during mid-day trading on Friday . The stock traded as low as $84.67 and last traded at $85.41, with a volume of 146024 shares trading hands. The stock had previously closed at $88.53.

Analyst Ratings Changes

A number of research firms have recently commented on PFSI. Zacks Research downgraded PennyMac Financial Services from a “hold” rating to a “strong sell” rating in a research report on Tuesday, February 3rd. Piper Sandler reduced their target price on PennyMac Financial Services from $168.00 to $137.00 and set an “overweight” rating on the stock in a research note on Friday, January 30th. Barclays dropped their price objective on PennyMac Financial Services from $158.00 to $136.00 and set an “overweight” rating on the stock in a research note on Friday, January 30th. BTIG Research reiterated a “buy” rating on shares of PennyMac Financial Services in a research note on Friday, January 30th. Finally, Wells Fargo & Company reduced their target price on shares of PennyMac Financial Services from $150.00 to $135.00 and set an “overweight” rating for the company in a report on Friday, January 30th. Five analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, PennyMac Financial Services currently has an average rating of “Hold” and an average price target of $139.71.

PennyMac Financial Services Price Performance

The firm’s fifty day moving average price is $117.48 and its 200 day moving average price is $121.89. The firm has a market capitalization of $4.50 billion, a PE ratio of 9.28, a P/E/G ratio of 0.49 and a beta of 1.56. The company has a current ratio of 0.34, a quick ratio of 0.34 and a debt-to-equity ratio of 3.32.

PennyMac Financial Services (NYSE:PFSI) last announced its quarterly earnings results on Thursday, January 29th. The real estate investment trust reported $1.97 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $3.23 by ($1.26). The company had revenue of $538.01 million during the quarter, compared to analyst estimates of $639.81 million. PennyMac Financial Services had a net margin of 24.48% and a return on equity of 10.20%. The company’s revenue was up 14.4% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.95 earnings per share. As a group, equities analysts forecast that PennyMac Financial Services, Inc. will post 13.77 earnings per share for the current year.

PennyMac Financial Services Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, February 26th. Shareholders of record on Monday, February 16th were given a $0.30 dividend. The ex-dividend date was Friday, February 13th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.4%. PennyMac Financial Services’s dividend payout ratio is 12.90%.

Insider Activity

In related news, insider Derek Stark sold 1,066 shares of PennyMac Financial Services stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $87.66, for a total value of $93,445.56. Following the completion of the transaction, the insider owned 20,944 shares in the company, valued at $1,835,951.04. The trade was a 4.84% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO David Spector sold 10,000 shares of the company’s stock in a transaction that occurred on Thursday, February 19th. The stock was sold at an average price of $94.50, for a total value of $945,000.00. Following the transaction, the chief executive officer directly owned 90,604 shares of the company’s stock, valued at approximately $8,562,078. The trade was a 9.94% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 37,374 shares of company stock worth $4,329,946. 15.80% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On PennyMac Financial Services

Institutional investors have recently bought and sold shares of the company. EverSource Wealth Advisors LLC acquired a new stake in shares of PennyMac Financial Services during the 2nd quarter worth approximately $26,000. Caitong International Asset Management Co. Ltd grew its position in PennyMac Financial Services by 7,600.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 231 shares of the real estate investment trust’s stock worth $30,000 after acquiring an additional 228 shares during the period. Strs Ohio acquired a new stake in PennyMac Financial Services during the first quarter worth $30,000. Los Angeles Capital Management LLC purchased a new stake in PennyMac Financial Services in the fourth quarter valued at $31,000. Finally, GAMMA Investing LLC grew its holdings in shares of PennyMac Financial Services by 97.3% during the 4th quarter. GAMMA Investing LLC now owns 288 shares of the real estate investment trust’s stock worth $38,000 after purchasing an additional 142 shares during the period. 57.87% of the stock is owned by hedge funds and other institutional investors.

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.