PennyMac Financial Services (NYSE:PFSI) Reaches New 12-Month Low on Analyst Downgrade

PennyMac Financial Services, Inc. (NYSE:PFSI) reached a new 52-week low on Tuesday after BTIG Research lowered their price target on the stock from $90.00 to $80.00. BTIG Research currently has a buy rating on the stock. PennyMac Financial Services traded as low as $58.72 and last traded at $58.82, with a volume of 679,711 shares. The stock had previously closed at $59.90.

Other analysts have also issued research reports about the company. Wall Street Zen lowered PennyMac Financial Services from a “hold” rating to a “sell” rating in a research note on Saturday, August 1st. Barclays reduced their target price on shares of PennyMac Financial Services from $85.00 to $71.00 and set an “equal weight” rating on the stock in a report on Monday, October 5th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of PennyMac Financial Services in a research note on Monday, August 3rd. Piper Sandler decreased their price target on shares of PennyMac Financial Services from $86.00 to $71.00 and set a “neutral” rating on the stock in a research note on Friday. Finally, Keefe, Bruyette & Woods lowered their price target on shares of PennyMac Financial Services from $108.00 to $100.00 and set an “outperform” rating for the company in a report on Friday, July 31st. Four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $100.00.

Institutional Investors Weigh In On PennyMac Financial Services

Hedge funds have recently made changes to their positions in the business. Caitong International Asset Management Co. Ltd grew its stake in shares of PennyMac Financial Services by 7,600.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 231 shares of the real estate investment trust’s stock valued at $30,000 after buying an additional 228 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of PennyMac Financial Services in the 2nd quarter worth $25,000. Silvant Capital Management LLC purchased a new position in shares of PennyMac Financial Services in the 2nd quarter worth $34,000. GAMMA Investing LLC raised its position in shares of PennyMac Financial Services by 313.2% in the 3rd quarter. GAMMA Investing LLC now owns 438 shares of the real estate investment trust’s stock worth $27,000 after buying an additional 332 shares during the period. Finally, Freestone Grove Partners LP acquired a new position in PennyMac Financial Services in the second quarter valued at $41,000. Institutional investors and hedge funds own 57.87% of the company’s stock.

PennyMac Financial Services Stock Up 1.4%

The stock has a market cap of $3.10 billion, a price-to-earnings ratio of 8.19, a PEG ratio of 0.58 and a beta of 1.45. The company has a quick ratio of 0.38, a current ratio of 0.38 and a debt-to-equity ratio of 3.22. The stock has a fifty day moving average of $69.82 and a two-hundred day moving average of $80.06.

PennyMac Financial Services (NYSE:PFSI) last posted its quarterly earnings results on Wednesday, July 29th. The real estate investment trust reported $1.39 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.11 by ($0.72). The firm had revenue of $496.96 million for the quarter, compared to analysts’ expectations of $571.60 million. PennyMac Financial Services had a net margin of 17.74% and a return on equity of 11.18%. PennyMac Financial Services’s revenue was up 11.8% on a year-over-year basis. During the same period last year, the firm posted $2.54 EPS. As a group, analysts predict that PennyMac Financial Services, Inc. will post 7.09 EPS for the current fiscal year.

PennyMac Financial Services Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, August 27th. Investors of record on Monday, August 17th were given a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date of this dividend was Monday, August 17th. PennyMac Financial Services’s dividend payout ratio is 16.48%.

About PennyMac Financial Services

PennyMac Financial Services, Inc (NYSE:PFSI) is a financial services company focused on the U.S. residential mortgage market. Through its operating subsidiaries, the company originates, acquires, services and manages investments in residential mortgage loans and related assets.

PennyMac’s business includes mortgage loan production through correspondent and consumer-direct channels, mortgage servicing and loan administration, and investment management activities. Its services support homeowners, mortgage originators and institutional investors across the residential lending lifecycle, including loan fulfillment, servicing and asset management.

The company was established in 2008 and serves customers and business partners throughout the United States.