PennyMac Financial Services (NYSE:PFSI) Shares Gap Down on Analyst Downgrade

PennyMac Financial Services, Inc. (NYSE:PFSI) gapped down prior to trading on Thursday after Deutsche Bank Aktiengesellschaft lowered their price target on the stock from $115.00 to $112.00. The stock had previously closed at $92.07, but opened at $85.32. Deutsche Bank Aktiengesellschaft currently has a buy rating on the stock. PennyMac Financial Services shares last traded at $85.85, with a volume of 297,138 shares traded.

A number of other equities research analysts have also weighed in on PFSI. Keefe, Bruyette & Woods upgraded PennyMac Financial Services from a “market perform” rating to an “outperform” rating and boosted their price target for the stock from $100.00 to $105.00 in a research note on Tuesday, April 9th. StockNews.com upgraded PennyMac Financial Services from a “sell” rating to a “hold” rating in a research report on Thursday, April 11th. Barclays increased their price objective on PennyMac Financial Services from $103.00 to $112.00 and gave the company an “overweight” rating in a research note on Tuesday, April 9th. Finally, Wedbush reaffirmed an “outperform” rating and set a $110.00 target price on shares of PennyMac Financial Services in a report on Thursday. Two analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. According to data from MarketBeat, PennyMac Financial Services currently has an average rating of “Moderate Buy” and a consensus target price of $98.38.

Insider Activity at PennyMac Financial Services

In other PennyMac Financial Services news, CFO Daniel Stanley Perotti sold 11,400 shares of the firm’s stock in a transaction dated Thursday, February 15th. The shares were sold at an average price of $88.50, for a total value of $1,008,900.00. Following the transaction, the chief financial officer now owns 257,897 shares of the company’s stock, valued at $22,823,884.50. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other PennyMac Financial Services news, CFO Daniel Stanley Perotti sold 11,400 shares of PennyMac Financial Services stock in a transaction that occurred on Thursday, February 15th. The shares were sold at an average price of $88.50, for a total transaction of $1,008,900.00. Following the transaction, the chief financial officer now directly owns 257,897 shares in the company, valued at approximately $22,823,884.50. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO David Spector sold 15,000 shares of the business’s stock in a transaction on Tuesday, February 20th. The shares were sold at an average price of $87.18, for a total transaction of $1,307,700.00. Following the sale, the chief executive officer now directly owns 270,604 shares in the company, valued at $23,591,256.72. The disclosure for this sale can be found here. In the last three months, insiders sold 87,802 shares of company stock worth $7,666,108. Corporate insiders own 17.40% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. SG Americas Securities LLC increased its stake in PennyMac Financial Services by 283.2% during the 3rd quarter. SG Americas Securities LLC now owns 10,415 shares of the real estate investment trust’s stock worth $694,000 after acquiring an additional 7,697 shares during the period. Exchange Traded Concepts LLC bought a new stake in shares of PennyMac Financial Services during the third quarter worth $57,000. Dakota Wealth Management bought a new position in shares of PennyMac Financial Services in the 3rd quarter valued at $1,313,000. Bank of New York Mellon Corp increased its position in shares of PennyMac Financial Services by 3.2% during the third quarter. Bank of New York Mellon Corp now owns 234,486 shares of the real estate investment trust’s stock worth $15,617,000 after buying an additional 7,251 shares during the period. Finally, Zurcher Kantonalbank Zurich Cantonalbank grew its stake in shares of PennyMac Financial Services by 13.2% during the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 8,076 shares of the real estate investment trust’s stock worth $538,000 after acquiring an additional 944 shares during the period. Institutional investors and hedge funds own 57.87% of the company’s stock.

PennyMac Financial Services Stock Performance

The company’s fifty day simple moving average is $87.88 and its 200 day simple moving average is $82.82. The company has a debt-to-equity ratio of 1.90, a current ratio of 0.37 and a quick ratio of 0.37. The firm has a market capitalization of $4.35 billion, a PE ratio of 31.42, a P/E/G ratio of 0.61 and a beta of 1.67.

PennyMac Financial Services (NYSE:PFSI) last released its quarterly earnings data on Wednesday, April 24th. The real estate investment trust reported $2.48 earnings per share for the quarter, beating analysts’ consensus estimates of $2.34 by $0.14. The business had revenue of $305.66 million during the quarter, compared to analyst estimates of $422.87 million. PennyMac Financial Services had a net margin of 10.32% and a return on equity of 7.69%. As a group, equities research analysts expect that PennyMac Financial Services, Inc. will post 10.41 EPS for the current fiscal year.

PennyMac Financial Services Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, February 23rd. Shareholders of record on Tuesday, February 13th were issued a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a yield of 0.93%. The ex-dividend date of this dividend was Monday, February 12th. PennyMac Financial Services’s dividend payout ratio is presently 29.52%.

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.