PennyMac Financial Services (NYSE:PFSI) Lowered to “Strong Sell” Rating by Zacks Research

Zacks Research cut shares of PennyMac Financial Services (NYSE:PFSI) from a hold rating to a strong sell rating in a research note issued to investors on Tuesday,Zacks.com reports.

Several other analysts have also weighed in on PFSI. Wells Fargo & Company lowered their target price on PennyMac Financial Services from $150.00 to $135.00 and set an “overweight” rating on the stock in a report on Friday, January 30th. Weiss Ratings lowered PennyMac Financial Services from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, January 20th. UBS Group lifted their price objective on PennyMac Financial Services from $135.00 to $145.00 and gave the company a “neutral” rating in a research report on Friday, October 24th. BTIG Research reiterated a “buy” rating on shares of PennyMac Financial Services in a research report on Friday, January 30th. Finally, Piper Sandler lowered their price target on PennyMac Financial Services from $168.00 to $137.00 and set an “overweight” rating for the company in a report on Friday, January 30th. Five research 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, the company presently has a consensus rating of “Hold” and an average price target of $139.71.

PennyMac Financial Services Stock Performance

Shares of PFSI opened at $96.03 on Tuesday. The company has a debt-to-equity ratio of 3.01, a quick ratio of 0.36 and a current ratio of 0.36. PennyMac Financial Services has a 1 year low of $85.74 and a 1 year high of $160.36. The stock has a market capitalization of $4.99 billion, a PE ratio of 10.33, a PEG ratio of 0.53 and a beta of 1.54. The stock has a 50-day simple moving average of $135.12 and a 200-day simple moving average of $123.03.

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). PennyMac Financial Services had a return on equity of 10.36% and a net margin of 24.48%.The business had revenue of $538.01 million for the quarter, compared to analysts’ expectations of $639.81 million. During the same period last year, the firm earned $1.95 earnings per share. The firm’s quarterly revenue was up 14.4% on a year-over-year basis. On average, analysts predict that PennyMac Financial Services will post 13.77 earnings per share for the current fiscal year.

PennyMac Financial Services Dividend Announcement

The business 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 $0.30 dividend. The ex-dividend date of this dividend is Friday, February 13th. This represents a $1.20 annualized dividend and a yield of 1.2%. PennyMac Financial Services’s dividend payout ratio (DPR) is 12.90%.

Insider Buying and Selling

In other news, CFO Daniel Stanley Perotti sold 8,775 shares of the company’s stock in a transaction dated Monday, November 17th. The stock was sold at an average price of $126.67, for a total value of $1,111,529.25. Following the completion of the sale, 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 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 sale, the director owned 19,056 shares in the company, valued at approximately $2,430,783.36. The trade was a 55.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 75,758 shares of company stock worth $9,967,733. Company insiders own 15.80% of the company’s stock.

Institutional Trading of PennyMac Financial Services

Several large investors have recently modified their holdings of the business. EverSource Wealth Advisors LLC bought a new stake in shares of PennyMac Financial Services in the second quarter worth $26,000. GAMMA Investing LLC raised its position 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. Strs Ohio bought a new stake in PennyMac Financial Services in the first quarter valued at $30,000. Harbor Capital Advisors Inc. lifted its position in PennyMac Financial Services by 26.3% in the 3rd quarter. Harbor Capital Advisors Inc. now owns 504 shares of the real estate investment trust’s stock valued at $62,000 after purchasing an additional 105 shares during the last quarter. Finally, CWM LLC raised its holdings in shares of PennyMac Financial Services by 92.7% during the third quarter. CWM LLC now owns 555 shares of the real estate investment trust’s stock valued at $69,000 after buying an additional 267 shares during the last quarter. 57.87% of the stock is currently owned by institutional investors and hedge funds.

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.