PennyMac Financial Services (NYSE:PFSI) Hits New 12-Month Low – Should You Sell?

Shares of PennyMac Financial Services, Inc. (NYSE:PFSI) hit a new 52-week low during trading on Wednesday . The company traded as low as $67.54 and last traded at $68.0820, with a volume of 1036217 shares trading hands. The stock had previously closed at $68.97.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on PFSI shares. BTIG Research cut their price target on shares of PennyMac Financial Services from $105.00 to $90.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. Wells Fargo & Company decreased their price objective on shares of PennyMac Financial Services from $100.00 to $95.00 and set an “overweight” rating for the company in a report on Thursday, July 30th. Keefe, Bruyette & Woods cut their target price on shares of PennyMac Financial Services from $108.00 to $100.00 and set an “outperform” rating on the stock in a report on Friday, July 31st. Barclays reduced their price target on shares of PennyMac Financial Services from $93.00 to $85.00 and set an “equal weight” rating on the stock in a research report on Thursday, July 30th. Finally, Wall Street Zen lowered shares of PennyMac Financial Services from a “hold” rating to a “sell” rating in a report on Saturday, August 1st. Four equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $104.88.

PennyMac Financial Services Stock Performance

The stock has a market cap of $3.46 billion, a P/E ratio of 9.15, a price-to-earnings-growth ratio of 0.62 and a beta of 1.44. The company has a debt-to-equity ratio of 3.22, a current ratio of 0.38 and a quick ratio of 0.38. The stock’s 50 day simple moving average is $76.78 and its two-hundred day simple moving average is $83.10.

PennyMac Financial Services (NYSE:PFSI) last issued its quarterly earnings data on Wednesday, July 29th. The real estate investment trust reported $1.39 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.11 by ($0.72). PennyMac Financial Services had a return on equity of 11.18% and a net margin of 17.74%.The company had revenue of $496.96 million for the quarter, compared to the consensus estimate of $571.60 million. During the same period in the prior year, the company earned $2.54 EPS. The firm’s revenue was up 11.8% on a year-over-year basis. As a group, research analysts forecast that PennyMac Financial Services, Inc. will post 7.36 EPS for the current year.

PennyMac Financial Services Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, August 27th. Investors of record on Monday, August 17th were paid a $0.30 dividend. The ex-dividend date of this dividend was Monday, August 17th. This represents a $1.20 dividend on an annualized basis and a yield of 1.8%. PennyMac Financial Services’s dividend payout ratio is presently 16.48%.

Insider Transactions at PennyMac Financial Services

In other PennyMac Financial Services news, CAO Gregory Hendry sold 2,943 shares of the stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $81.71, for a total transaction of $240,472.53. Following the completion of the transaction, the chief accounting officer owned 48,968 shares in the company, valued at approximately $4,001,175.28. This represents a 5.67% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 15.20% of the company’s stock.

Institutional Trading of PennyMac Financial Services

A number of institutional investors have recently modified their holdings of PFSI. MFN Partners Management LP acquired a new position in PennyMac Financial Services during the second quarter worth $394,719,083. BlackRock Inc. acquired a new stake in shares of PennyMac Financial Services in the second quarter valued at about $202,735,000. Donald Smith & CO. Inc. acquired a new stake in shares of PennyMac Financial Services in the second quarter valued at about $163,940,000. Norges Bank bought a new stake in PennyMac Financial Services during the fourth quarter worth about $44,287,000. Finally, Bank of New York Mellon Corp bought a new stake in PennyMac Financial Services during the second quarter worth about $26,424,000. 57.87% of the stock is currently owned by institutional investors.

PennyMac Financial Services Company Profile

PennyMac Financial Services, Inc (NYSE:PFSI) is a mortgage banking company that provides a range of residential lending and loan servicing services in the United States. The company operates through its subsidiaries and focuses primarily on the production and servicing of conventional and government-insured residential mortgage loans.

PennyMac’s loan production business acquires, originates and refinances mortgage loans through correspondent, broker-direct and consumer-direct channels.