Wall Street Zen Downgrades PennyMac Financial Services (NYSE:PFSI) to Hold

by · The Markets Daily

PennyMac Financial Services (NYSE:PFSI – Get Free Report) was downgraded by Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Sunday.

Other research analysts have also issued research reports about the company. Keefe, Bruyette & Woods lifted their target price on PennyMac Financial Services from $138.00 to $143.00 and gave the stock a “market perform” rating in a research report on Thursday, December 18th. Zacks Research raised PennyMac Financial Services to a “hold” rating in a research note on Friday, December 19th. BTIG Research boosted their target price on PennyMac Financial Services from $135.00 to $150.00 and gave the stock a “buy” rating in a research report on Monday, December 29th. Jefferies Financial Group started coverage on shares of PennyMac Financial Services in a research report on Friday, December 19th. They issued a “buy” rating and a $160.00 price target for the company. Finally, Weiss Ratings raised shares of PennyMac Financial Services from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Monday, January 5th. Six research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, PennyMac Financial Services has a consensus rating of “Moderate Buy” and a consensus price target of $153.43.

Get Our Latest Stock Report on PFSI

PennyMac Financial Services Price Performance

Shares of NYSE PFSI opened at $159.60 on Friday. The company has a debt-to-equity ratio of 3.01, a current ratio of 0.36 and a quick ratio of 0.36. PennyMac Financial Services has a 1-year low of $85.74 and a 1-year high of $160.36. The company has a market capitalization of $8.29 billion, a price-to-earnings ratio of 17.20, a PEG ratio of 0.73 and a beta of 1.57. The business has a 50-day moving average of $134.12 and a 200-day moving average of $120.54.

PennyMac Financial Services (NYSE:PFSI – Get Free Report) last released its quarterly earnings results on Tuesday, October 21st. The real estate investment trust reported $3.37 earnings per share for the quarter, beating analysts’ consensus estimates of $2.98 by $0.39. PennyMac Financial Services had a net margin of 25.21% and a return on equity of 11.69%. The business had revenue of $632.90 million during the quarter, compared to analyst estimates of $573.46 million. During the same period last year, the business earned $1.30 EPS. The business’s revenue was up 53.7% on a year-over-year basis. On average, equities analysts anticipate that PennyMac Financial Services will post 13.77 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CAO Gregory L. Hendry sold 3,530 shares of the business’s stock in a transaction dated Thursday, December 18th. The stock was sold at an average price of $131.64, for a total value of $464,689.20. Following the completion of the sale, the chief accounting officer directly owned 48,633 shares of the company’s stock, valued at $6,402,048.12. The trade was a 6.77% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at 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 stock was sold at an average price of $126.67, for a total value of $1,111,529.25. Following the completion of the transaction, the chief financial officer owned 216,475 shares in the company, valued at approximately $27,420,888.25. The trade was a 3.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 218,129 shares of company stock valued at $28,409,467. 15.80% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On PennyMac Financial Services

Several hedge funds and other institutional investors have recently modified their holdings of PFSI. EverSource Wealth Advisors LLC bought a new position in shares of PennyMac Financial Services in the second quarter valued at $26,000. Strs Ohio purchased a new position in PennyMac Financial Services during the first quarter worth about $30,000. GAMMA Investing LLC boosted its stake in shares of PennyMac Financial Services by 97.3% in the 4th quarter. GAMMA Investing LLC now owns 288 shares of the real estate investment trust’s stock worth $38,000 after buying an additional 142 shares during the last quarter. Bayforest Capital Ltd purchased a new position in PennyMac Financial Services in the second quarter worth $62,000. Finally, Harbor Capital Advisors Inc. grew its position in PennyMac Financial Services by 26.3% during the third quarter. Harbor Capital Advisors Inc. now owns 504 shares of the real estate investment trust’s stock valued at $62,000 after buying an additional 105 shares during the period. Institutional investors own 57.87% of the company’s stock.

PennyMac Financial Services Company Profile

(Get Free Report)

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.

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