PennyMac Financial Services, Inc. $PFSI Stock: Prescott Group Capital Management L.L.C. Lowers Holdings

Prescott Group Capital Management L.L.C. reduced its position in PennyMac Financial Services, Inc. (NYSE:PFSI) by 51.3% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 60,809 shares of the real estate investment trust’s stock after selling 64,154 shares during the quarter. Prescott Group Capital Management L.L.C. owned about 0.12% of PennyMac Financial Services worth $3,753,000 at the end of the most recent reporting period.

Other large investors have also made changes to their positions in the company. The Manufacturers Life Insurance Company purchased a new position in PennyMac Financial Services during the 2nd quarter worth $1,713,000. BlueCrest Capital Management Ltd increased its position in PennyMac Financial Services by 12.8% during the 2nd quarter. BlueCrest Capital Management Ltd now owns 396,103 shares of the real estate investment trust’s stock valued at $34,501,000 after buying an additional 45,008 shares in the last quarter. Legal & General Group Plc acquired a new position in PennyMac Financial Services during the 2nd quarter valued at about $2,250,000. Donald Smith & CO. Inc. purchased a new stake in PennyMac Financial Services in the second quarter valued at about $163,940,000. Finally, Bank of America Corp DE purchased a new stake in PennyMac Financial Services in the second quarter valued at about $24,930,000. 57.87% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

PFSI has been the subject of several recent analyst reports. Weiss Ratings downgraded PennyMac Financial Services from a “sell (d+)” rating to a “sell (d)” rating in a report on Thursday, October 29th. Keefe, Bruyette & Woods downgraded shares of PennyMac Financial Services from a “moderate buy” rating to a “hold” rating and cut their price objective for the company from $100.00 to $80.00 in a report on Monday. Stephens decreased their price objective on shares of PennyMac Financial Services from $91.00 to $78.00 and set an “equal weight” rating for the company in a research report on Thursday, July 30th. Wall Street Zen cut shares of PennyMac Financial Services from a “hold” rating to a “sell” rating in a research note on Saturday, August 1st. Finally, Piper Sandler lowered their target price on shares of PennyMac Financial Services from $86.00 to $71.00 and set a “neutral” rating for the company in a research note on Friday, October 9th. Three equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $88.71.

PennyMac Financial Services Stock Down 2.3%

PFSI stock opened at $63.79 on Wednesday. PennyMac Financial Services, Inc. has a one year low of $57.52 and a one year high of $160.36. The company has a debt-to-equity ratio of 3.22, a quick ratio of 0.38 and a current ratio of 0.38. The firm’s fifty day moving average is $65.58 and its 200 day moving average is $84.20. The firm has a market cap of $3.31 billion, a PE ratio of 14.34 and a beta of 1.48.

PennyMac Financial Services (NYSE:PFSI) last issued its quarterly earnings data on Thursday, October 29th. The real estate investment trust reported $1.05 earnings per share for the quarter, missing analysts’ consensus estimates of $1.27 by ($0.22). PennyMac Financial Services had a return on equity of 8.20% and a net margin of 11.72%. The firm had revenue of $502.00 million during the quarter, compared to analyst estimates of $531.77 million. During the same quarter last year, the company posted $3.37 EPS. The company’s revenue was down 25.9% on a year-over-year basis. On average, research analysts forecast that PennyMac Financial Services, Inc. will post 5.78 EPS for the current year.

PennyMac Financial Services Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 27th. Investors of record on Monday, November 16th will be paid a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 1.9%. The ex-dividend date is Monday, November 16th. PennyMac Financial Services’s payout ratio is currently 26.97%.

About PennyMac Financial Services

PennyMac Financial Services, Inc (NYSE: PFSI) is a specialty financial services company focused on the U.S. residential mortgage market. Through its subsidiaries, the company originates, acquires, and services residential mortgage loans, with an emphasis on conventional, government-backed, and other mortgage products.

PennyMac’s primary businesses include mortgage production, loan servicing, and investment management. Its production platform acquires and originates loans through correspondent relationships with banks and other lenders, as well as through direct-to-consumer and broker channels.