Wall Street Zen Upgrades PennyMac Financial Services (NYSE:PFSI) to “Hold”

PennyMac Financial Services (NYSE:PFSI) was upgraded by investment analysts at Wall Street Zen from a “sell” rating to a “hold” rating in a research report issued on Monday.

PFSI has been the subject of a number of other reports. Wells Fargo & Company began coverage on shares of PennyMac Financial Services in a research note on Monday, August 25th. They issued an “overweight” rating and a $115.00 price objective for the company. Keefe, Bruyette & Woods raised their price target on PennyMac Financial Services from $117.00 to $121.00 and gave the stock an “outperform” rating in a report on Wednesday, September 3rd. Piper Sandler decreased their price objective on PennyMac Financial Services from $125.00 to $121.00 and set an “overweight” rating on the stock in a research note on Wednesday, July 23rd. Barclays cut their target price on PennyMac Financial Services from $124.00 to $119.00 and set an “overweight” rating for the company in a research note on Tuesday, July 8th. Finally, UBS Group reduced their target price on PennyMac Financial Services from $115.00 to $110.00 and set a “neutral” rating for the company in a report on Thursday, July 24th. Five equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, PennyMac Financial Services has an average rating of “Moderate Buy” and a consensus price target of $119.33.

PennyMac Financial Services Trading Down 0.8%

Shares of PFSI opened at $123.73 on Monday. PennyMac Financial Services has a fifty-two week low of $85.74 and a fifty-two week high of $130.02. The business has a 50-day moving average of $110.37 and a 200 day moving average of $102.29. The firm has a market cap of $6.40 billion, a P/E ratio of 17.16 and a beta of 1.51. The company has a debt-to-equity ratio of 3.03, a quick ratio of 0.34 and a current ratio of 0.34.

PennyMac Financial Services (NYSE:PFSI) last issued its earnings results on Tuesday, July 22nd. The real estate investment trust reported $1.02 earnings per share for the quarter, missing analysts’ consensus estimates of $3.01 by ($1.99). The business had revenue of $444.73 million for the quarter, compared to the consensus estimate of $547.44 million. PennyMac Financial Services had a return on equity of 12.18% and a net margin of 22.00%.PennyMac Financial Services’s revenue for the quarter was up 9.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.85 EPS. As a group, research analysts forecast that PennyMac Financial Services will post 13.77 EPS for the current year.

Insider Activity at PennyMac Financial Services

In other PennyMac Financial Services news, insider Derek Stark sold 4,750 shares of the business’s stock in a transaction that occurred on Monday, August 25th. The shares were sold at an average price of $109.56, for a total value of $520,410.00. Following the completion of the transaction, the insider owned 20,621 shares of the company’s stock, valued at $2,259,236.76. The trade was a 18.72% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Joseph F. Mazzella sold 7,107 shares of the stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $108.16, for a total transaction of $768,693.12. Following the completion of the transaction, the director directly owned 86,050 shares in the company, valued at $9,307,168. The trade was a 7.63% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 35,632 shares of company stock valued at $3,910,766. Company insiders own 15.80% of the company’s stock.

Hedge Funds Weigh In On PennyMac Financial Services

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Orbis Allan Gray Ltd increased its position in shares of PennyMac Financial Services by 447.5% during the 1st quarter. Orbis Allan Gray Ltd now owns 926,775 shares of the real estate investment trust’s stock valued at $92,779,000 after purchasing an additional 757,489 shares during the last quarter. Norges Bank purchased a new stake in PennyMac Financial Services in the second quarter worth approximately $39,976,000. Goldentree Asset Management LP bought a new position in PennyMac Financial Services during the second quarter valued at approximately $29,249,000. Millennium Management LLC raised its stake in shares of PennyMac Financial Services by 48.8% during the first quarter. Millennium Management LLC now owns 771,605 shares of the real estate investment trust’s stock worth $77,245,000 after acquiring an additional 253,031 shares in the last quarter. Finally, Philadelphia Financial Management of San Francisco LLC bought a new stake in shares of PennyMac Financial Services in the 1st quarter worth approximately $18,701,000. 57.87% of the stock is currently owned by hedge funds and other institutional investors.

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.