PennyMac Financial Services (NYSE:PFSI) Price Target Cut to $122.00 by Analysts at Piper Sandler

PennyMac Financial Services (NYSE:PFSI) had its price objective dropped by stock analysts at Piper Sandler from $137.00 to $122.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The firm presently has an “overweight” rating on the real estate investment trust’s stock. Piper Sandler’s target price would suggest a potential upside of 39.91% from the stock’s current price.

PFSI has been the subject of a number of other reports. Jefferies Financial Group began coverage on PennyMac Financial Services in a research note on Friday, December 19th. They set a “buy” rating and a $160.00 price objective for the company. Weiss Ratings lowered PennyMac Financial Services from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, January 20th. Zacks Research downgraded shares of PennyMac Financial Services from a “hold” rating to a “strong sell” rating in a report on Tuesday, February 3rd. Wells Fargo & Company decreased their price target on shares of PennyMac Financial Services from $150.00 to $135.00 and set an “overweight” rating for the company in a research report on Friday, January 30th. Finally, Wall Street Zen cut shares of PennyMac Financial Services from a “buy” rating to a “hold” rating in a report on Sunday, January 18th. Six investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, PennyMac Financial Services presently has an average rating of “Moderate Buy” and an average price target of $137.57.

PennyMac Financial Services Stock Down 0.6%

NYSE:PFSI traded down $0.50 during trading hours on Thursday, reaching $87.20. The company’s stock had a trading volume of 27,891 shares, compared to its average volume of 855,930. The stock has a 50 day moving average price of $97.33 and a two-hundred day moving average price of $118.49. The company has a debt-to-equity ratio of 3.32, a quick ratio of 0.34 and a current ratio of 0.34. The company has a market capitalization of $4.55 billion, a P/E ratio of 9.37, a price-to-earnings-growth ratio of 0.50 and a beta of 1.52. PennyMac Financial Services has a 12 month low of $82.65 and a 12 month high of $160.36.

PennyMac Financial Services (NYSE:PFSI) last announced 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). PennyMac Financial Services had a net margin of 24.48% and a return on equity of 10.20%. The company had revenue of $538.01 million for the quarter, compared to the consensus estimate of $639.81 million. During the same period last year, the business posted $1.95 EPS. The firm’s revenue was up 14.4% compared to the same quarter last year. Equities analysts predict that PennyMac Financial Services will post 13.77 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Derek Stark sold 1,903 shares of the company’s stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $91.50, for a total transaction of $174,124.50. Following the transaction, the insider directly owned 22,477 shares of the company’s stock, valued at $2,056,645.50. This represents a 7.81% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO David Spector sold 12,436 shares of the stock in a transaction dated 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 sale, the chief executive officer owned 529,401 shares of the company’s stock, valued at approximately $45,734,952.39. This trade represents a 2.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 51,280 shares of company stock valued at $5,154,453 in the last 90 days. Corporate insiders own 15.80% of the company’s stock.

Hedge Funds Weigh In On PennyMac Financial Services

Several hedge funds and other institutional investors have recently modified their holdings of PFSI. AQR Capital Management LLC boosted its stake in PennyMac Financial Services by 3.8% in the 1st quarter. AQR Capital Management LLC now owns 24,012 shares of the real estate investment trust’s stock worth $2,404,000 after purchasing an additional 875 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in PennyMac Financial Services by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,923 shares of the real estate investment trust’s stock worth $1,594,000 after purchasing an additional 706 shares during the last quarter. Intech Investment Management LLC increased its stake in PennyMac Financial Services by 5.8% during the 1st quarter. Intech Investment Management LLC now owns 15,382 shares of the real estate investment trust’s stock valued at $1,540,000 after purchasing an additional 840 shares in the last quarter. Strs Ohio purchased a new position in shares of PennyMac Financial Services in the first quarter worth $30,000. Finally, Legal & General Group Plc raised its holdings in shares of PennyMac Financial Services by 0.5% in the second quarter. Legal & General Group Plc now owns 35,478 shares of the real estate investment trust’s stock worth $3,535,000 after buying an additional 173 shares during the last quarter. 57.87% of the stock is owned by hedge funds and other institutional investors.

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.