PennyMac Financial Services (NYSE:PFSI) Stock Price Breaks Below 50-Day Moving Average – Here’s Why

PennyMac Financial Services, Inc. (NYSE:PFSI)’s share price crossed below its fifty day moving average during trading on Tuesday. The stock has a fifty day moving average of $64.82 and traded as low as $62.20. PennyMac Financial Services shares last traded at $62.7260, with a volume of 541,655 shares.

Wall Street Analyst Weigh In

PFSI has been the subject of several recent analyst reports. Wall Street Zen cut PennyMac Financial Services from a “hold” rating to a “sell” rating in a research note on Saturday, August 1st. BTIG Research set a $80.00 price objective on PennyMac Financial Services and gave the company a “buy” rating in a research report on Thursday. Keefe, Bruyette & Woods cut PennyMac Financial Services from a “moderate buy” rating to a “hold” rating and dropped their price objective for the company from $100.00 to $80.00 in a research report on Monday, November 2nd. Stephens reduced their price objective on PennyMac Financial Services from $91.00 to $78.00 and set an “equal weight” rating for the company in a report on Thursday, July 30th. Finally, Wells Fargo & Company decreased their target price on PennyMac Financial Services from $95.00 to $85.00 and set an “overweight” rating for the company in a research report on Friday, October 30th. Three research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $88.71.

PennyMac Financial Services Stock Performance

The firm has a market cap of $3.15 billion, a P/E ratio of 13.64 and a beta of 1.48. The company has a debt-to-equity ratio of 3.12, a quick ratio of 0.29 and a current ratio of 0.29. The business’s 50-day simple moving average is $64.42 and its 200 day simple moving average is $81.13.

PennyMac Financial Services (NYSE:PFSI) last released its quarterly earnings results on Thursday, October 29th. The real estate investment trust reported $1.05 earnings per share for the quarter, missing the consensus estimate of $1.27 by ($0.22). The firm had revenue of $502.00 million for the quarter, compared to the consensus estimate of $531.77 million. PennyMac Financial Services had a net margin of 11.72% and a return on equity of 8.18%. PennyMac Financial Services’s quarterly revenue was down 25.9% compared to the same quarter last year. During the same period in the previous year, the company earned $3.37 earnings per share. As a group, equities analysts predict that PennyMac Financial Services, Inc. will post 5.78 earnings per share for the current year.

PennyMac Financial Services Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 27th. Investors of record on Monday, November 16th will be given a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date is Monday, November 16th. PennyMac Financial Services’s dividend payout ratio is 26.97%.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. QRG Capital Management Inc. grew its stake in shares of PennyMac Financial Services by 7.5% during the 2nd quarter. QRG Capital Management Inc. now owns 3,881 shares of the real estate investment trust’s stock valued at $338,000 after purchasing an additional 271 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of PennyMac Financial Services in the second quarter worth approximately $25,000. GAMMA Investing LLC grew its position in PennyMac Financial Services by 313.2% during the third quarter. GAMMA Investing LLC now owns 438 shares of the real estate investment trust’s stock valued at $27,000 after buying an additional 332 shares during the period. Covestor Ltd increased its holdings in PennyMac Financial Services by 82.0% during the third quarter. Covestor Ltd now owns 770 shares of the real estate investment trust’s stock valued at $48,000 after buying an additional 347 shares during the last quarter. Finally, Silvant Capital Management LLC bought a new stake in shares of PennyMac Financial Services during the 2nd quarter valued at $34,000. Institutional investors own 57.87% of the company’s stock.

PennyMac Financial Services Company Profile

PennyMac Financial Services, Inc. is a mortgage banking company founded in 2008 and headquartered in Westlake Village, California. It operates primarily in the U.S. residential mortgage market, originating and acquiring home loans through correspondent, broker-direct and consumer-direct channels. The company also services residential mortgage loans for itself and other investors. Its servicing activities include collecting payments, managing escrow accounts and supporting borrowers throughout the life of their loans.