BTIG Research Issues Pessimistic Forecast for PennyMac Financial Services (NYSE:PFSI) Stock Price

PennyMac Financial Services (NYSE:PFSI) had its price target reduced by stock analysts at BTIG Research from $150.00 to $105.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The firm presently has a “buy” rating on the real estate investment trust’s stock. BTIG Research’s price target indicates a potential upside of 27.63% from the company’s current price.

A number of other equities research analysts also recently commented on PFSI. Zacks Research downgraded PennyMac Financial Services from a “hold” rating to a “strong sell” rating in a research report on Friday, May 8th. Wall Street Zen upgraded PennyMac Financial Services from a “sell” rating to a “hold” rating in a research report on Saturday, May 9th. Piper Sandler cut their price objective on PennyMac Financial Services from $122.00 to $112.00 and set an “overweight” rating for the company in a research report on Wednesday, May 6th. Keefe, Bruyette & Woods cut their price objective on PennyMac Financial Services from $115.00 to $108.00 and set an “outperform” rating for the company in a research report on Friday, May 8th. Finally, Barclays cut their price objective on PennyMac Financial Services from $116.00 to $107.00 and set an “overweight” rating for the company in a research report on Monday, May 11th. Six equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $117.13.

PennyMac Financial Services Stock Performance

Shares of PFSI stock opened at $82.27 on Tuesday. PennyMac Financial Services has a 12-month low of $77.67 and a 12-month high of $160.36. The firm has a market capitalization of $4.27 billion, a price-to-earnings ratio of 8.74, a price-to-earnings-growth ratio of 0.53 and a beta of 1.44. The business has a 50 day simple moving average of $87.48 and a 200 day simple moving average of $105.21. The company has a debt-to-equity ratio of 3.63, a current ratio of 0.33 and a quick ratio of 0.33.

PennyMac Financial Services (NYSE:PFSI) last issued its quarterly earnings data on Tuesday, May 5th. The real estate investment trust reported $2.19 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.22 by ($0.03). The business had revenue of $544.98 million during the quarter, compared to the consensus estimate of $546.17 million. PennyMac Financial Services had a return on equity of 10.93% and a net margin of 23.47%.The business’s quarterly revenue was up 26.5% compared to the same quarter last year. During the same period last year, the company earned $1.42 earnings per share. On average, equities research analysts anticipate that PennyMac Financial Services will post 10.68 EPS for the current year.

Insiders Place Their Bets

In other news, CEO David Spector sold 10,000 shares of the company’s stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $87.99, for a total value of $879,900.00. Following the transaction, the chief executive officer directly owned 60,604 shares of the company’s stock, valued at approximately $5,332,545.96. This represents a 14.16% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel Stanley Perotti sold 2,925 shares of the company’s stock in a transaction on Friday, May 15th. The stock was sold at an average price of $87.50, for a total transaction of $255,937.50. Following the completion of the transaction, the chief financial officer directly owned 210,625 shares in the company, valued at $18,429,687.50. This trade represents a 1.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 22,925 shares of company stock worth $2,064,138 over the last ninety days. 15.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On PennyMac Financial Services

Hedge funds have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd increased 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 acquiring an additional 228 shares during the last quarter. Los Angeles Capital Management LLC acquired a new position in shares of PennyMac Financial Services in the fourth quarter worth $31,000. EverSource Wealth Advisors LLC acquired a new position in shares of PennyMac Financial Services in the second quarter worth $26,000. GAMMA Investing LLC increased its position in PennyMac Financial Services by 97.3% during the fourth 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. Finally, Strs Ohio acquired a new position in PennyMac Financial Services during the first quarter worth $30,000. 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.