Zacks Investment Research Downgrades PennyMac Financial Services (NYSE:PFSI) to Sell


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Zacks Investment Research downgraded shares of PennyMac Financial Services (NYSE:PFSI) from a hold rating to a sell rating in a report issued on Thursday morning, Zacks.com reports.

According to Zacks, “PennyMac Financial Services, Inc. provides financial services primarily in the United States. The Company conducts its business in two segments: mortgage banking and investment management. Mortgage banking segment offers correspondent and retail lending businesses and loan servicing business. Investment management segment offers investment advisory and investment management services. PennyMac Financial Services, Inc. is headquartered in Moorpark, California. “

A number of other equities analysts have also recently issued reports on the stock. Piper Sandler increased their price objective on shares of PennyMac Financial Services from $90.00 to $109.00 and gave the company an overweight rating in a research note on Friday, February 5th. Credit Suisse Group increased their price objective on shares of PennyMac Financial Services from $80.00 to $85.00 and gave the company an outperform rating in a research note on Monday, February 8th. Wedbush restated an outperform rating on shares of PennyMac Financial Services in a research note on Monday, February 1st. Wells Fargo & Company restated an equal weight rating and issued a $70.00 price objective (down previously from $75.00) on shares of PennyMac Financial Services in a research note on Thursday, March 25th. Finally, Keefe, Bruyette & Woods restated a market perform rating and issued a $73.00 price objective (down previously from $77.00) on shares of PennyMac Financial Services in a research note on Tuesday. One investment analyst has rated the stock with a sell rating, two have given a hold rating and six have assigned a buy rating to the stock. The stock presently has a consensus rating of Buy and an average target price of $82.38.

Shares of PennyMac Financial Services stock opened at $59.77 on Thursday. The company has a debt-to-equity ratio of 2.76, a current ratio of 0.34 and a quick ratio of 0.34. PennyMac Financial Services has a fifty-two week low of $25.01 and a fifty-two week high of $70.99. The firm has a fifty day moving average price of $62.70 and a two-hundred day moving average price of $60.72. The company has a market cap of $4.14 billion, a PE ratio of 3.51 and a beta of 1.22.

PennyMac Financial Services (NYSE:PFSI) last issued its quarterly earnings results on Thursday, February 4th. The real estate investment trust reported $5.97 earnings per share for the quarter, beating analysts’ consensus estimates of $5.92 by $0.05. PennyMac Financial Services had a net margin of 42.70% and a return on equity of 54.29%. The firm had revenue of $1.04 billion during the quarter, compared to the consensus estimate of $1.06 billion. Analysts expect that PennyMac Financial Services will post 20.98 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which was paid on Thursday, February 25th. Investors of record on Friday, February 12th were given a dividend of $0.20 per share. The ex-dividend date of this dividend was Thursday, February 11th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.34%. This is a boost from PennyMac Financial Services’s previous quarterly dividend of $0.12. PennyMac Financial Services’s dividend payout ratio (DPR) is 16.36%.

In related news, Director Stanford L. Kurland sold 15,000 shares of the stock in a transaction dated Wednesday, January 20th. The shares were sold at an average price of $59.90, for a total transaction of $898,500.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Mfn Partners, Lp bought 133,383 shares of the company’s stock in a transaction that occurred on Friday, March 5th. The shares were purchased at an average price of $58.14 per share, with a total value of $7,754,887.62. The disclosure for this purchase can be found here. In the last quarter, insiders have purchased 1,166,474 shares of company stock valued at $72,939,758 and have sold 295,679 shares valued at $18,417,510. Company insiders own 21.48% of the company’s stock.

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Wiley BROS. Aintree Capital LLC acquired a new stake in PennyMac Financial Services in the 1st quarter valued at about $1,319,000. SkyView Investment Advisors LLC acquired a new stake in PennyMac Financial Services in the 4th quarter valued at about $319,000. RBF Capital LLC acquired a new stake in PennyMac Financial Services in the 4th quarter valued at about $328,000. Norges Bank acquired a new stake in PennyMac Financial Services in the 4th quarter valued at about $29,185,000. Finally, Healthcare of Ontario Pension Plan Trust Fund acquired a new stake in PennyMac Financial Services in the 4th quarter valued at about $4,528,000. Hedge funds and other institutional investors own 51.72% of the company’s stock.

About PennyMac Financial Services

PennyMac Financial Services, Inc, through its subsidiaries, engages in the mortgage banking and investment management activities in the United States. It operates through three segments: Production, Servicing, and Investment Management. The Production segment is involved in the origination, acquisition, and sale of loans.

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Analyst Recommendations for PennyMac Financial Services (NYSE:PFSI)

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