PennyMac Financial Services (NYSE:PFSI) Shares Down 3.6% – What’s Next?

PennyMac Financial Services, Inc. (NYSE:PFSI)’s stock price dropped 3.6% during trading on Thursday . The stock traded as low as $98.25 and last traded at $98.44. Approximately 118,976 shares changed hands during mid-day trading, a decline of 54% from the average daily volume of 257,161 shares. The stock had previously closed at $102.14.

Analysts Set New Price Targets

Several analysts recently commented on the company. Barclays raised their target price on PennyMac Financial Services from $112.00 to $125.00 and gave the stock an “overweight” rating in a report on Tuesday, October 8th. Wells Fargo & Company lifted their target price on shares of PennyMac Financial Services from $110.00 to $125.00 and gave the company an “overweight” rating in a report on Thursday, October 24th. Piper Sandler raised their price target on shares of PennyMac Financial Services from $125.00 to $132.00 and gave the company an “overweight” rating in a research report on Wednesday, October 23rd. Wedbush reiterated an “outperform” rating and issued a $130.00 price objective on shares of PennyMac Financial Services in a research report on Wednesday, October 23rd. Finally, Keefe, Bruyette & Woods lowered their target price on shares of PennyMac Financial Services from $112.00 to $111.00 and set a “market perform” rating on the stock in a research note on Tuesday, December 10th. One equities research analyst has rated the stock with a sell rating, one has assigned a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $122.50.

PennyMac Financial Services Stock Performance

The company has a current ratio of 0.38, a quick ratio of 0.38 and a debt-to-equity ratio of 2.75. The stock has a market cap of $5.16 billion, a price-to-earnings ratio of 31.98 and a beta of 1.78. The firm’s 50-day moving average is $103.46 and its two-hundred day moving average is $102.75.

PennyMac Financial Services (NYSE:PFSI) last issued its quarterly earnings results on Tuesday, October 22nd. The real estate investment trust reported $1.30 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.92 by ($1.62). The firm had revenue of $411.83 million during the quarter, compared to analyst estimates of $513.12 million. PennyMac Financial Services had a return on equity of 15.13% and a net margin of 11.45%. The business’s revenue was up 2.9% on a year-over-year basis. During the same period in the prior year, the firm earned $1.77 earnings per share. As a group, sell-side analysts expect that PennyMac Financial Services, Inc. will post 11.88 earnings per share for the current year.

PennyMac Financial Services Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, November 27th. Investors of record on Monday, November 18th were given a dividend of $0.30 per share. The ex-dividend date was Monday, November 18th. This represents a $1.20 dividend on an annualized basis and a yield of 1.19%. PennyMac Financial Services’s payout ratio is presently 38.10%.

Insider Buying and Selling at PennyMac Financial Services

In other PennyMac Financial Services news, CEO David Spector sold 61,120 shares of the business’s stock in a transaction dated Friday, December 20th. The shares were sold at an average price of $101.72, for a total value of $6,217,126.40. Following the transaction, the chief executive officer now directly owns 634,612 shares in the company, valued at $64,552,732.64. The trade was a 8.78 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Doug Jones sold 7,882 shares of the company’s stock in a transaction that occurred on Thursday, December 26th. The shares were sold at an average price of $103.16, for a total value of $813,107.12. Following the completion of the transaction, the director now owns 450,000 shares in the company, valued at $46,422,000. This represents a 1.72 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 152,844 shares of company stock worth $15,658,591. Insiders own 16.60% of the company’s stock.

Hedge Funds Weigh In On PennyMac Financial Services

Several institutional investors have recently bought and sold shares of the company. Harbor Capital Advisors Inc. acquired a new stake in shares of PennyMac Financial Services in the 3rd quarter valued at $37,000. Blue Trust Inc. raised its stake in PennyMac Financial Services by 59.5% in the third quarter. Blue Trust Inc. now owns 702 shares of the real estate investment trust’s stock valued at $80,000 after buying an additional 262 shares in the last quarter. KBC Group NV raised its stake in PennyMac Financial Services by 20.3% in the third quarter. KBC Group NV now owns 1,340 shares of the real estate investment trust’s stock valued at $153,000 after buying an additional 226 shares in the last quarter. Quantbot Technologies LP lifted its holdings in PennyMac Financial Services by 23.7% during the 3rd quarter. Quantbot Technologies LP now owns 1,516 shares of the real estate investment trust’s stock worth $173,000 after buying an additional 290 shares during the last quarter. Finally, Verition Fund Management LLC acquired a new position in shares of PennyMac Financial Services during the 3rd quarter worth about $203,000. 57.87% of the stock is owned by institutional investors and hedge funds.

About PennyMac Financial Services

PennyMac Financial Services, Inc, through its subsidiaries, engages in the mortgage banking and investment management activities in the United States. The company operates through three segments: Production, Servicing, and Investment Management. The Production segment is involved in the origination, acquisition, and sale of loans.