PennyMac Financial Services (NYSE:PFSI) Lowered to Strong Sell Rating by Zacks Research

PennyMac Financial Services (NYSE:PFSI) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Tuesday,Zacks.com reports.

Other equities research analysts also recently issued reports about the stock. Wall Street Zen downgraded shares of PennyMac Financial Services from a “buy” rating to a “hold” rating in a research report on Sunday, January 18th. Piper Sandler dropped their target price on PennyMac Financial Services from $168.00 to $137.00 and set an “overweight” rating on the stock in a report on Friday, January 30th. Weiss Ratings cut PennyMac Financial Services from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, January 20th. Barclays decreased their price target on PennyMac Financial Services from $158.00 to $136.00 and set an “overweight” rating for the company in a report on Friday, January 30th. Finally, Keefe, Bruyette & Woods lowered their price objective on PennyMac Financial Services from $143.00 to $115.00 and set a “market perform” rating for the company in a research report on Monday. Five investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $139.71.

PennyMac Financial Services Price Performance

PFSI stock opened at $96.03 on Tuesday. The business’s 50-day moving average is $135.12 and its two-hundred day moving average is $123.03. The company has a debt-to-equity ratio of 3.01, a current ratio of 0.36 and a quick ratio of 0.36. The firm has a market capitalization of $4.99 billion, a P/E ratio of 10.33, a P/E/G ratio of 0.53 and a beta of 1.54. PennyMac Financial Services has a 1 year low of $85.74 and a 1 year high of $160.36.

PennyMac Financial Services (NYSE:PFSI) last released its earnings results on Thursday, January 29th. The real estate investment trust reported $1.97 earnings per share for the quarter, missing analysts’ consensus estimates of $3.23 by ($1.26). The firm had revenue of $538.01 million for the quarter, compared to analysts’ expectations of $639.81 million. PennyMac Financial Services had a return on equity of 10.36% and a net margin of 24.48%.The firm’s quarterly revenue was up 14.4% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.95 earnings per share. Analysts anticipate that PennyMac Financial Services will post 13.77 earnings per share for the current fiscal year.

Insider Buying and Selling at PennyMac Financial Services

In other news, CEO David Spector sold 10,000 shares of the company’s stock in a transaction dated Tuesday, January 13th. The shares were sold at an average price of $145.19, for a total value of $1,451,900.00. Following the completion of the sale, the chief executive officer directly owned 100,604 shares of the company’s stock, valued at approximately $14,606,694.76. This represents a 9.04% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Doug Jones sold 23,453 shares of the stock in a transaction dated Monday, November 10th. The stock was sold at an average price of $127.56, for a total transaction of $2,991,664.68. Following the sale, the director owned 19,056 shares of the company’s stock, valued at $2,430,783.36. This trade represents a 55.17% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 75,758 shares of company stock valued at $9,967,733. Company insiders own 15.80% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of PFSI. EverSource Wealth Advisors LLC purchased a new stake in shares of PennyMac Financial Services during the second quarter worth approximately $26,000. Strs Ohio acquired a new position in PennyMac Financial Services in the 1st quarter valued at $30,000. GAMMA Investing LLC raised its position in PennyMac Financial Services by 97.3% during the 4th quarter. GAMMA Investing LLC now owns 288 shares of the real estate investment trust’s stock worth $38,000 after buying an additional 142 shares during the last quarter. Bayforest Capital Ltd acquired a new stake in shares of PennyMac Financial Services in the 2nd quarter worth $62,000. Finally, Harbor Capital Advisors Inc. boosted its holdings in shares of PennyMac Financial Services by 26.3% in the third quarter. Harbor Capital Advisors Inc. now owns 504 shares of the real estate investment trust’s stock valued at $62,000 after acquiring an additional 105 shares in the last quarter. 57.87% of the stock is currently owned by hedge funds and other institutional investors.

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.