PennyMac Financial Services (NYSE:PFSI) Stock Rating Upgraded by Keefe, Bruyette & Woods

PennyMac Financial Services (NYSE:PFSI) was upgraded by Keefe, Bruyette & Woods from a “market perform” rating to an “outperform” rating in a report released on Monday,Benzinga reports. The brokerage currently has a $115.00 target price on the real estate investment trust’s stock. Keefe, Bruyette & Woods’ price objective suggests a potential upside of 36.66% from the stock’s previous close.

A number of other equities analysts have also recently issued reports on PFSI. Barclays cut their price objective on PennyMac Financial Services from $158.00 to $136.00 and set an “overweight” rating for the company in a report on Friday, January 30th. Zacks Research downgraded PennyMac Financial Services from a “hold” rating to a “strong sell” rating in a research report on Tuesday, February 3rd. BTIG Research reiterated a “buy” rating on shares of PennyMac Financial Services in a research report on Friday, January 30th. Weiss Ratings downgraded shares of PennyMac Financial Services from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, January 20th. Finally, Piper Sandler lowered their price objective on shares of PennyMac Financial Services from $168.00 to $137.00 and set an “overweight” rating for the company in a report on Friday, January 30th. Six analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, PennyMac Financial Services has an average rating of “Moderate Buy” and an average price target of $139.71.

PennyMac Financial Services Trading Down 0.5%

Shares of PennyMac Financial Services stock opened at $84.15 on Monday. The company has a debt-to-equity ratio of 3.32, a current ratio of 0.34 and a quick ratio of 0.34. PennyMac Financial Services has a 1 year low of $83.66 and a 1 year high of $160.36. The firm has a market cap of $4.39 billion, a PE ratio of 9.05, a PEG ratio of 0.48 and a beta of 1.56. The company has a 50 day simple moving average of $112.89 and a two-hundred day simple moving average of $121.25.

PennyMac Financial Services (NYSE:PFSI) last posted its quarterly earnings data 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 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 analysts’ expectations of $639.81 million. During the same quarter last year, the business posted $1.95 EPS. The business’s quarterly revenue was up 14.4% compared to the same quarter last year. Analysts expect that PennyMac Financial Services will post 13.77 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Patrick Kinsella purchased 2,250 shares of the business’s stock in a transaction that occurred on Thursday, February 12th. The shares were bought at an average price of $89.15 per share, for a total transaction of $200,587.50. Following the purchase, the director directly owned 34,210 shares of the company’s stock, valued at approximately $3,049,821.50. This represents a 7.04% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Gregory L. Hendry sold 3,530 shares of the 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 in the company, valued at approximately $6,402,048.12. This represents a 6.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 59,810 shares of company stock worth $6,268,192 over the last 90 days. Corporate insiders own 15.80% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd lifted its stake in shares of PennyMac Financial Services by 7,600.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 231 shares of the real estate investment trust’s stock worth $30,000 after buying an additional 228 shares in the last quarter. Virtu Financial LLC purchased a new position in PennyMac Financial Services in the 4th quarter worth approximately $379,000. Invesco Ltd. raised its holdings in PennyMac Financial Services by 7.3% in the 4th quarter. Invesco Ltd. now owns 1,569,184 shares of the real estate investment trust’s stock worth $206,881,000 after acquiring an additional 106,088 shares during the last quarter. Mercer Global Advisors Inc. ADV lifted its position in PennyMac Financial Services by 5.2% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 10,167 shares of the real estate investment trust’s stock valued at $1,340,000 after acquiring an additional 504 shares in the last quarter. Finally, XTX Topco Ltd purchased a new stake in PennyMac Financial Services during the 4th quarter valued at $479,000. 57.87% of the stock is owned by hedge funds and other institutional investors.

PennyMac Financial Services Company Profile

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.