Wells Fargo & Company Cuts PennyMac Financial Services (NYSE:PFSI) Price Target to $110.00

PennyMac Financial Services (NYSE:PFSI) had its target price trimmed by Wells Fargo & Company from $135.00 to $110.00 in a research report report published on Thursday morning, Marketbeat Ratings reports. The firm currently has an overweight rating on the real estate investment trust’s stock.

Other research analysts also recently issued research reports about the stock. Piper Sandler dropped their target price on shares of PennyMac Financial Services from $137.00 to $122.00 and set an “overweight” rating on the stock in a research note on Thursday, April 2nd. Barclays dropped their target price on shares of PennyMac Financial Services from $136.00 to $116.00 and set an “overweight” rating on the stock in a research note on Monday, April 6th. Keefe, Bruyette & Woods raised shares of PennyMac Financial Services from a “market perform” rating to an “outperform” rating and set a $115.00 price objective for the company in a report on Monday, March 16th. Zacks Research raised shares of PennyMac Financial Services from a “strong sell” rating to a “hold” rating in a report on Friday, April 3rd. Finally, BTIG Research reissued a “buy” rating on shares of PennyMac Financial Services in a report on Friday, January 30th. Six analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, PennyMac Financial Services has an average rating of “Moderate Buy” and a consensus target price of $131.14.

PennyMac Financial Services Trading Down 0.4%

Shares of NYSE PFSI opened at $91.39 on Thursday. The firm’s 50 day moving average price is $89.99 and its 200-day moving average price is $116.82. The company has a market cap of $4.77 billion, a PE ratio of 9.83, a P/E/G ratio of 0.53 and a beta of 1.52. PennyMac Financial Services has a 52-week low of $82.65 and a 52-week high of $160.36. The company has a debt-to-equity ratio of 3.32, a quick ratio of 0.34 and a current ratio of 0.34.

PennyMac Financial Services (NYSE:PFSI) last issued its earnings results on Thursday, January 29th. The real estate investment trust reported $1.97 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.23 by ($1.26). The firm had revenue of $538.01 million during the quarter, compared to the consensus estimate of $639.81 million. PennyMac Financial Services had a return on equity of 10.20% and a net margin of 24.48%.The company’s quarterly revenue was up 14.4% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.95 EPS. On average, equities research analysts expect that PennyMac Financial Services will post 13.77 EPS for the current fiscal year.

PennyMac Financial Services Dividend Announcement

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

Insider Activity at PennyMac Financial Services

In related news, Director Patrick Kinsella acquired 2,250 shares of the firm’s stock in a transaction dated Thursday, February 12th. The stock was purchased at an average cost of $89.15 per share, with a total value of $200,587.50. Following the completion of the acquisition, the director directly owned 34,210 shares of the company’s stock, valued at approximately $3,049,821.50. This trade represents a 7.04% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Daniel Stanley Perotti sold 2,925 shares of the company’s stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $93.30, for a total transaction of $272,902.50. Following the sale, the chief financial officer directly owned 213,550 shares of the company’s stock, valued at approximately $19,924,215. This represents a 1.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 51,280 shares of company stock valued at $5,154,453 over the last ninety days. Company insiders own 15.80% of the company’s stock.

Institutional Trading of PennyMac Financial Services

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd increased its holdings in PennyMac Financial Services by 7,600.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 231 shares of the real estate investment trust’s stock valued at $30,000 after buying an additional 228 shares during the last quarter. Virtu Financial LLC purchased a new stake in PennyMac Financial Services during the fourth quarter valued at approximately $379,000. Invesco Ltd. increased its holdings in PennyMac Financial Services by 7.3% during the fourth quarter. Invesco Ltd. now owns 1,569,184 shares of the real estate investment trust’s stock valued at $206,881,000 after buying an additional 106,088 shares during the last quarter. Mercer Global Advisors Inc. ADV increased its holdings in PennyMac Financial Services by 5.2% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 10,167 shares of the real estate investment trust’s stock valued at $1,340,000 after buying an additional 504 shares during the last quarter. Finally, XTX Topco Ltd purchased a new stake in PennyMac Financial Services during the fourth quarter valued at approximately $479,000. 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.