PennyMac Financial Services, Inc. (NYSE:PFSI – Get Free Report) hit a new 52-week low during trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $72.79 and last traded at $76.3190, with a volume of 136495 shares changing hands. The stock had previously closed at $86.04.
The real estate investment trust reported $1.39 EPS for the quarter, missing the consensus estimate of $2.11 by ($0.72). PennyMac Financial Services had a net margin of 23.47% and a return on equity of 10.93%. The firm had revenue of $566.00 million during the quarter, compared to analyst estimates of $571.60 million. During the same quarter in the previous year, the firm posted $2.54 earnings per share. PennyMac Financial Services’s quarterly revenue was up 11.8% compared to the same quarter last year.
PennyMac Financial Services Announces Dividend
The firm also recently announced a quarterly dividend, which will be paid on Thursday, August 27th. Shareholders of record on Monday, August 17th will be paid a dividend of $0.30 per share. The ex-dividend date of this dividend is Monday, August 17th. This represents a $1.20 annualized dividend and a yield of 1.6%. PennyMac Financial Services’s payout ratio is presently 12.75%.
Key PennyMac Financial Services News
- Positive Sentiment: Wells Fargo maintained an “overweight” rating on PFSI and lowered its price target from $100 to $95. The revised target still implies approximately 25% upside from the recently quoted share price, signaling that the firm views the selloff as excessive. Benzinga analyst price target report
- Positive Sentiment: PennyMac declared a quarterly dividend of $0.30 per share, payable August 27 to shareholders of record on August 17. The annualized payout is approximately $1.20 per share and represents a yield of about 1.4%, offering ongoing shareholder income.
- Neutral Sentiment: Second-quarter revenue increased 11.8% year over year to $566 million, indicating continued business growth. However, profitability and the outlook are more important to investors given the earnings shortfall. PennyMac second-quarter 2026 results
- Negative Sentiment: PFSI reported second-quarter earnings of $1.39 per share, missing the $2.08–$2.11 analyst consensus by roughly $0.70. Earnings also fell from $2.54 per share in the comparable period, making the results the primary catalyst for investor concern despite the revenue growth. Zacks PennyMac earnings report
- Negative Sentiment: Two law firms announced investigations into potential securities-law violations and allegations that PennyMac may have provided materially misleading information related to refinancing issues. These announcements do not establish wrongdoing, but they add headline, litigation and reputational risk to the stock. Rosen Law Firm investigation announcement
Wall Street Analyst Weigh In
Several equities research analysts recently issued reports on the stock. Zacks Research lowered shares of PennyMac Financial Services from a “hold” rating to a “strong sell” rating in a report on Friday, May 8th. Weiss Ratings downgraded shares of PennyMac Financial Services from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Wednesday, May 6th. Wall Street Zen upgraded shares of PennyMac Financial Services from a “sell” rating to a “hold” rating in a research report on Saturday, May 9th. Keefe, Bruyette & Woods lowered their price target on shares of PennyMac Financial Services from $115.00 to $108.00 and set an “outperform” rating for the company in a report on Friday, May 8th. Finally, Piper Sandler downgraded shares of PennyMac Financial Services from an “overweight” rating to a “neutral” rating and lowered their price target for the stock from $106.00 to $86.00 in a report on Thursday. Four research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, PennyMac Financial Services presently has a consensus rating of “Hold” and an average price target of $107.75.
View Our Latest Stock Analysis on PennyMac Financial Services
Insiders Place Their Bets
In other news, CFO Daniel Stanley Perotti sold 2,925 shares of PennyMac Financial Services stock in a transaction on Friday, May 15th. The shares were sold at an average price of $87.50, for a total transaction of $255,937.50. Following the transaction, the chief financial officer owned 210,625 shares in the company, valued at approximately $18,429,687.50. The trade was a 1.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Gregory L. Hendry sold 2,177 shares of the business’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $86.89, for a total transaction of $189,159.53. Following the completion of the sale, the chief accounting officer directly owned 48,968 shares in the company, valued at approximately $4,254,829.52. This represents a 4.26% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 18,045 shares of company stock valued at $1,565,470 in the last ninety days. 15.80% of the stock is currently owned by insiders.
Institutional Inflows and Outflows
Hedge funds and other institutional investors have recently bought and sold shares of the stock. EverSource Wealth Advisors LLC bought a new stake in shares of PennyMac Financial Services in the 2nd quarter valued at about $26,000. Caitong International Asset Management Co. Ltd raised its position in shares of PennyMac Financial Services by 7,600.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 231 shares of the real estate investment trust’s stock worth $30,000 after acquiring an additional 228 shares during the last quarter. Strs Ohio acquired a new position in shares of PennyMac Financial Services in the first quarter worth approximately $30,000. Los Angeles Capital Management LLC bought a new stake in PennyMac Financial Services in the fourth quarter valued at approximately $31,000. Finally, GAMMA Investing LLC boosted its holdings in PennyMac Financial Services by 97.3% in the fourth quarter. GAMMA Investing LLC now owns 288 shares of the real estate investment trust’s stock valued at $38,000 after acquiring an additional 142 shares during the last quarter. 57.87% of the stock is owned by institutional investors and hedge funds.
PennyMac Financial Services Price Performance
The firm has a market cap of $3.88 billion, a price-to-earnings ratio of 7.95, a P/E/G ratio of 0.61 and a beta of 1.44. The business’s 50-day simple moving average is $83.49 and its two-hundred day simple moving average is $94.11. The company has a current ratio of 0.33, a quick ratio of 0.33 and a debt-to-equity ratio of 3.63.
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.
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