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

PennyMac Financial Services (NYSE:PFSI) had its price objective cut by equities research analysts at BTIG Research from $150.00 to $105.00 in a research note issued on Tuesday,Benzinga reports. The brokerage currently has a “buy” rating on the real estate investment trust’s stock. BTIG Research’s price objective would suggest a potential upside of 27.63% from the company’s current price.

Other equities analysts also recently issued reports about the stock. Piper Sandler lowered their target price on shares of PennyMac Financial Services from $122.00 to $112.00 and set an “overweight” rating on the stock in a research report on Wednesday, May 6th. Stephens started coverage on shares of PennyMac Financial Services in a report on Friday, April 24th. They set an “equal weight” rating and a $100.00 price target for the company. Zacks Research cut shares of PennyMac Financial Services from a “hold” rating to a “strong sell” rating in a report on Friday, May 8th. Barclays decreased their price target on shares of PennyMac Financial Services from $116.00 to $107.00 and set an “overweight” rating for the company in a report on Monday, May 11th. Finally, Wells Fargo & Company decreased their price target on shares of PennyMac Financial Services from $110.00 to $100.00 and set an “overweight” rating for the company in a report on Wednesday, May 6th. Six analysts have rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $117.13.

PennyMac Financial Services Trading Up 0.7%

PennyMac Financial Services stock opened at $82.27 on Tuesday. The company has a debt-to-equity ratio of 3.63, a current ratio of 0.33 and a quick ratio of 0.33. The company has a market capitalization of $4.27 billion, a price-to-earnings ratio of 8.74, a PEG ratio of 0.53 and a beta of 1.44. PennyMac Financial Services has a one year low of $77.67 and a one year high of $160.36. The company’s fifty day moving average price is $87.48 and its two-hundred day moving average price is $105.21.

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

Insider Activity

In related news, CFO Daniel Stanley Perotti sold 2,925 shares of the stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $87.50, for a total value of $255,937.50. Following the completion of the sale, the chief financial officer owned 210,625 shares in the company, valued at approximately $18,429,687.50. This trade represents a 1.37% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Spector sold 10,000 shares of the stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $87.99, for a total transaction of $879,900.00. Following the completion of the sale, the chief executive officer owned 60,604 shares of the company’s stock, valued at approximately $5,332,545.96. The trade was a 14.16% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 22,925 shares of company stock valued at $2,064,138. 15.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On PennyMac Financial Services

Hedge funds have recently made changes to their positions in the stock. Hudson Bay Capital Management LP acquired a new stake in shares of PennyMac Financial Services during the third quarter worth approximately $5,593,000. 140 Summer Partners LP acquired a new stake in shares of PennyMac Financial Services during the third quarter worth approximately $55,268,000. Picton Mahoney Asset Management increased its holdings in shares of PennyMac Financial Services by 554.1% during the third quarter. Picton Mahoney Asset Management now owns 28,872 shares of the real estate investment trust’s stock worth $3,576,000 after buying an additional 24,458 shares in the last quarter. American Century Companies Inc. increased its holdings in shares of PennyMac Financial Services by 7.5% during the third quarter. American Century Companies Inc. now owns 429,403 shares of the real estate investment trust’s stock worth $53,195,000 after buying an additional 30,015 shares in the last quarter. Finally, M&T Bank Corp acquired a new stake in shares of PennyMac Financial Services during the fourth quarter worth approximately $5,095,000. Institutional investors own 57.87% of the company’s stock.

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.