PennyMac Financial Services (NYSE:PFSI) Sets New 12-Month Low – Here’s Why

PennyMac Financial Services, Inc. (NYSE:PFSI)’s stock price reached a new 52-week low during trading on Friday . The stock traded as low as $82.65 and last traded at $85.72, with a volume of 5911 shares traded. The stock had previously closed at $86.44.

Analyst Upgrades and Downgrades

PFSI has been the topic of several analyst reports. Keefe, Bruyette & Woods upgraded PennyMac Financial Services from a “market perform” rating to an “outperform” rating and set a $115.00 price objective on the stock in a research note on Monday, March 16th. Barclays lowered their target price on PennyMac Financial Services from $158.00 to $136.00 and set an “overweight” rating for the company in a research note on Friday, January 30th. Piper Sandler cut their price target on PennyMac Financial Services from $168.00 to $137.00 and set an “overweight” rating on the stock in a report on Friday, January 30th. Zacks Research lowered PennyMac Financial Services from a “hold” rating to a “strong sell” rating in a research report on Tuesday, February 3rd. 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. Six analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, PennyMac Financial Services has an average rating of “Moderate Buy” and a consensus price target of $139.71.

PennyMac Financial Services Price Performance

The firm has a market capitalization of $4.51 billion, a price-to-earnings ratio of 9.27, a price-to-earnings-growth ratio of 0.49 and a beta of 1.56. The stock’s fifty day moving average price is $102.84 and its two-hundred day moving average price is $119.51. 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 issued its earnings results 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). The firm had revenue of $538.01 million for the quarter, compared to analyst estimates of $639.81 million. PennyMac Financial Services had a return on equity of 10.20% and a net margin of 24.48%.The business’s revenue for the quarter was up 14.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.95 EPS. Equities research analysts expect that PennyMac Financial Services, Inc. will post 13.77 EPS for the current year.

PennyMac Financial Services Announces Dividend

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

Insiders Place Their Bets

In related news, insider Derek Stark sold 1,903 shares of the business’s stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $91.50, for a total transaction of $174,124.50. Following the completion of the sale, the insider owned 22,477 shares in the company, valued at $2,056,645.50. The trade was a 7.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO David Spector sold 12,436 shares of the company’s stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $86.39, for a total value of $1,074,346.04. Following the completion of the transaction, the chief executive officer directly owned 529,401 shares of the company’s stock, valued at $45,734,952.39. This trade represents a 2.30% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 51,280 shares of company stock worth $5,154,453. Insiders own 15.80% of the company’s stock.

Institutional Trading of PennyMac Financial Services

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

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.