PennyMac Financial Services (NYSE:PFSI) Sets New 1-Year Low – Time to Sell?

PennyMac Financial Services, Inc. (NYSE:PFSI)’s share price reached a new 52-week low during mid-day trading on Friday . The company traded as low as $84.10 and last traded at $84.4710, with a volume of 222780 shares changing hands. The stock had previously closed at $84.61.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on PFSI shares. Zacks Research downgraded shares of PennyMac Financial Services from a “hold” rating to a “strong sell” rating in a research report on Tuesday, February 3rd. Keefe, Bruyette & Woods decreased their price objective on PennyMac Financial Services from $143.00 to $115.00 and set a “market perform” rating for the company in a report on Monday, February 2nd. BTIG Research reaffirmed a “buy” rating on shares of PennyMac Financial Services in a research report on Friday, January 30th. Weiss Ratings lowered shares of PennyMac Financial Services from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, January 20th. Finally, Piper Sandler cut their price objective on shares of PennyMac Financial Services from $168.00 to $137.00 and set an “overweight” rating for the company in a research report on Friday, January 30th. Five investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, PennyMac Financial Services presently has an average rating of “Hold” and an average target price of $139.71.

PennyMac Financial Services Stock Down 0.6%

The stock has a 50 day moving average price of $113.84 and a 200 day moving average price of $121.25. The company has a market capitalization of $4.39 billion, a P/E ratio of 9.03, a PEG ratio of 0.50 and a beta of 1.56. The company has a current ratio of 0.34, a quick ratio of 0.34 and a debt-to-equity ratio of 3.32.

PennyMac Financial Services (NYSE:PFSI) last issued its quarterly earnings results on Thursday, January 29th. The real estate investment trust reported $1.97 EPS for the quarter, missing analysts’ consensus estimates of $3.23 by ($1.26). PennyMac Financial Services had a return on equity of 10.20% and a net margin of 24.48%.The business had revenue of $538.01 million for the quarter, compared to analyst estimates of $639.81 million. During the same quarter last year, the firm posted $1.95 EPS. PennyMac Financial Services’s revenue for the quarter was up 14.4% on a year-over-year basis. On average, research analysts anticipate that PennyMac Financial Services, Inc. will post 13.77 earnings per share for the current fiscal year.

PennyMac Financial Services Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, February 26th. Shareholders of record on Monday, February 16th were paid a $0.30 dividend. The ex-dividend date of this dividend was Friday, February 13th. This represents a $1.20 annualized dividend and a yield of 1.4%. PennyMac Financial Services’s payout ratio is 12.90%.

Insider Buying and Selling at PennyMac Financial Services

In other PennyMac Financial Services news, CEO David Spector sold 12,436 shares of the firm’s stock in a transaction on Friday, March 6th. The shares were sold at an average price of $86.39, for a total value of $1,074,346.04. Following the completion of the sale, the chief executive officer directly owned 529,401 shares in the company, valued at approximately $45,734,952.39. This trade represents a 2.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Daniel Stanley Perotti sold 2,925 shares of the business’s stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $93.30, for a total value of $272,902.50. Following the completion of the sale, the chief financial officer directly owned 213,550 shares of the company’s stock, valued at $19,924,215. The trade was a 1.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 59,810 shares of company stock valued at $6,268,192 over the last 90 days. Insiders own 15.80% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in PFSI. Caitong International Asset Management Co. Ltd lifted its position 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 worth $30,000 after buying an additional 228 shares in the last quarter. Virtu Financial LLC purchased a new position in shares of PennyMac Financial Services in the fourth quarter worth about $379,000. Invesco Ltd. raised its holdings in PennyMac Financial Services by 7.3% during the 4th quarter. Invesco Ltd. now owns 1,569,184 shares of the real estate investment trust’s stock valued at $206,881,000 after acquiring an additional 106,088 shares during the period. Mercer Global Advisors Inc. ADV boosted its stake in PennyMac Financial Services by 5.2% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 10,167 shares of the real estate investment trust’s stock worth $1,340,000 after purchasing an additional 504 shares during the period. Finally, XTX Topco Ltd bought a new position in PennyMac Financial Services in the 4th quarter valued at $479,000. 57.87% of the stock is owned by 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.