PennyMac Financial Services (NYSE:PFSI) Rating Lowered to Strong Sell at Zacks Research

PennyMac Financial Services (NYSE:PFSI) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Tuesday,Zacks.com reports.

PFSI has been the subject of a number of other reports. Wall Street Zen downgraded PennyMac Financial Services from a “buy” rating to a “hold” rating in a research note on Sunday, January 18th. Jefferies Financial Group began coverage on shares of PennyMac Financial Services in a report on Friday, December 19th. They issued a “buy” rating and a $160.00 price objective for the company. Wells Fargo & Company reduced their target price on shares of PennyMac Financial Services from $150.00 to $135.00 and set an “overweight” rating on the stock in a research note on Friday, January 30th. BTIG Research reiterated a “buy” rating on shares of PennyMac Financial Services in a report on Friday, January 30th. Finally, Barclays cut their price target on shares of PennyMac Financial Services from $158.00 to $136.00 and set an “overweight” rating for the company in a report on Friday, January 30th. Five research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, PennyMac Financial Services currently has an average rating of “Hold” and an average target price of $139.71.

PennyMac Financial Services Stock Up 3.1%

Shares of NYSE PFSI opened at $96.03 on Tuesday. The stock has a market cap of $4.99 billion, a PE ratio of 10.33, a P/E/G ratio of 0.53 and a beta of 1.54. The company has a current ratio of 0.36, a quick ratio of 0.36 and a debt-to-equity ratio of 3.01. PennyMac Financial Services has a 12-month low of $85.74 and a 12-month high of $160.36. The company has a 50-day moving average of $135.12 and a 200 day moving average of $123.03.

PennyMac Financial Services (NYSE:PFSI) last issued 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 10.36% and a net margin of 24.48%.The company had revenue of $538.01 million for the quarter, compared to analyst estimates of $639.81 million. During the same quarter in the prior year, the firm earned $1.95 earnings per share. The company’s revenue for the quarter was up 14.4% on a year-over-year basis. As a group, sell-side analysts predict that PennyMac Financial Services will post 13.77 EPS for the current fiscal year.

Insider Activity at PennyMac Financial Services

In other news, CAO Gregory L. Hendry sold 3,530 shares of PennyMac Financial Services stock in a transaction on 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 approximately $6,402,048.12. The trade was a 6.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO David Spector sold 10,000 shares of the business’s stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $145.19, for a total value of $1,451,900.00. Following the completion of the sale, the chief executive officer owned 100,604 shares in the company, valued at $14,606,694.76. This represents a 9.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 75,758 shares of company stock worth $9,967,733 over the last quarter. Company insiders own 15.80% of the company’s stock.

Hedge Funds Weigh In On PennyMac Financial Services

Several institutional investors have recently bought and sold shares of PFSI. EverSource Wealth Advisors LLC acquired a new stake in shares of PennyMac Financial Services during the second quarter worth about $26,000. Strs Ohio purchased a new stake in PennyMac Financial Services during the 1st quarter worth approximately $30,000. GAMMA Investing LLC lifted its holdings in PennyMac Financial Services by 97.3% during 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 in the last quarter. Bayforest Capital Ltd acquired a new stake in PennyMac Financial Services during the 2nd quarter worth approximately $62,000. Finally, Harbor Capital Advisors Inc. boosted its position in PennyMac Financial Services by 26.3% in the 3rd 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. 57.87% of the stock is owned by institutional investors and hedge funds.

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.