PennyMac Financial Services (NYSE:PFSI) Price Target Lowered to $135.00 at Wells Fargo & Company

PennyMac Financial Services (NYSE:PFSI) had its target price dropped by equities research analysts at Wells Fargo & Company from $150.00 to $135.00 in a research report issued on Friday,Benzinga reports. The brokerage currently has an “overweight” rating on the real estate investment trust’s stock. Wells Fargo & Company‘s price target would indicate a potential upside of 36.42% from the company’s current price.

Several other equities research analysts have also recently issued reports on the stock. BTIG Research reissued a “buy” rating on shares of PennyMac Financial Services in a research report on Friday. Zacks Research raised shares of PennyMac Financial Services to a “hold” rating in a research note on Friday, December 19th. Jefferies Financial Group assumed coverage on shares of PennyMac Financial Services in a report on Friday, December 19th. They issued a “buy” rating and a $160.00 price target on the stock. Piper Sandler dropped their price objective on PennyMac Financial Services from $168.00 to $137.00 and set an “overweight” rating for the company in a report on Friday. Finally, Barclays lifted their target price on PennyMac Financial Services from $139.00 to $158.00 and gave the company an “overweight” rating in a report on Tuesday, January 6th. Five research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $146.86.

PennyMac Financial Services Trading Down 33.9%

Shares of PennyMac Financial Services stock traded down $50.74 during trading hours on Friday, reaching $98.96. 1,822,697 shares of the company’s stock were exchanged, compared to its average volume of 532,734. PennyMac Financial Services has a 52-week low of $85.74 and a 52-week high of $160.36. The company has a fifty day moving average of $137.97 and a 200-day moving average of $123.00. The company has a current ratio of 0.36, a quick ratio of 0.36 and a debt-to-equity ratio of 3.01. The firm has a market capitalization of $5.14 billion, a price-to-earnings ratio of 10.50, a price-to-earnings-growth ratio of 0.67 and a beta of 1.57.

PennyMac Financial Services (NYSE:PFSI) last released its earnings results on Thursday, January 29th. The real estate investment trust reported $1.97 earnings per share for the quarter, missing the consensus estimate of $3.23 by ($1.26). PennyMac Financial Services had a return on equity of 11.69% and a net margin of 25.21%.The business had revenue of $538.01 million for the quarter, compared to analysts’ expectations of $639.81 million. During the same quarter last year, the company posted $1.95 earnings per share. The business’s quarterly revenue was up 14.4% compared to the same quarter last year. Sell-side analysts forecast that PennyMac Financial Services will post 13.77 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CAO Gregory L. Hendry sold 3,530 shares of the business’s stock in a transaction that occurred on Thursday, December 18th. The stock was sold at an average price of $131.64, for a total transaction of $464,689.20. Following the transaction, the chief accounting officer directly owned 48,633 shares of the company’s stock, valued at approximately $6,402,048.12. The trade was a 6.77% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CFO Daniel Stanley Perotti sold 8,775 shares of the stock in a transaction that occurred on Monday, November 17th. The shares were sold at an average price of $126.67, for a total transaction of $1,111,529.25. Following the completion of the sale, the chief financial officer directly owned 216,475 shares of the company’s stock, valued at $27,420,888.25. This trade represents a 3.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 80,076 shares of company stock valued at $10,512,190. Corporate insiders own 15.80% of the company’s stock.

Institutional Trading of PennyMac Financial Services

Hedge funds and other institutional investors have recently modified their holdings of the business. 140 Summer Partners LP purchased a new position in PennyMac Financial Services in the third quarter valued at about $55,268,000. Norges Bank purchased a new position in shares of PennyMac Financial Services during the 2nd quarter valued at approximately $39,976,000. Goldentree Asset Management LP acquired a new stake in shares of PennyMac Financial Services during the second quarter worth approximately $29,249,000. Two Sigma Investments LP increased its stake in shares of PennyMac Financial Services by 1,148.7% in the third quarter. Two Sigma Investments LP now owns 310,919 shares of the real estate investment trust’s stock worth $38,517,000 after buying an additional 286,019 shares during the last quarter. Finally, Holocene Advisors LP boosted its stake in PennyMac Financial Services by 2,379.5% during the 3rd quarter. Holocene Advisors LP now owns 245,268 shares of the real estate investment trust’s stock valued at $30,384,000 after acquiring an additional 235,376 shares during the last quarter. 57.87% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about PennyMac Financial Services

Here are the key news stories impacting PennyMac Financial Services this week:

• Positive Sentiment: PennyMac declared a $0.30 quarterly cash dividend, payable Feb 26 to holders of record Feb 16 — a signal of continued shareholder returns. PennyMac Reports Fourth Quarter and Full‑Year 2025 Results
• Positive Sentiment: Company reported year‑over‑year revenue growth (up ~14.4%) and a small increase in book value per share (to $82.77), which supports underlying franchise strength despite the quarter’s misses. PennyMac Reports Fourth Quarter and Full‑Year 2025 Results
• Neutral Sentiment: Brokerage coverage remains constructive at a consensus “Moderate Buy,” which could limit downside if fundamentals stabilize and margins recover. Consensus Rating Article
• Neutral Sentiment: Management hosted an earnings call and the transcript/highlights are available for detail on margin drivers, reserve assumptions and capital deployment plans — useful for assessing whether the margin pressure is temporary. Earnings Call Highlights
• Negative Sentiment: Q4 EPS missed by $1.26 and revenue missed by ~$101.8M vs. consensus; Seeking Alpha and other outlets report shares dropped sharply as management flagged pressured margins — the primary driver of today’s share decline. Shares Sink After Earnings Miss
• Negative Sentiment: Multiple news outlets (Zacks, Yahoo, MarketBeat summaries) emphasize the magnitude of the miss and lower near‑term profitability, increasing uncertainty around near‑term earnings and valuation multiples. Earnings Miss Coverage

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.