Wall Street Zen Downgrades PennyMac Financial Services (NYSE:PFSI) to Sell
by Doug Wharley · The Cerbat GemPennyMac Financial Services (NYSE:PFSI – Get Free Report) was downgraded by research analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a report issued on Saturday.
A number of other research analysts have also recently commented on the company. Wells Fargo & Company decreased their price target on PennyMac Financial Services from $135.00 to $110.00 and set an “overweight” rating on the stock in a research note on Thursday. Keefe, Bruyette & Woods upgraded PennyMac Financial Services from a “market perform” rating to an “outperform” rating and set a $115.00 price target on the stock in a research note on Monday, March 16th. Weiss Ratings cut PennyMac Financial Services from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday, January 20th. Zacks Research upgraded PennyMac Financial Services from a “strong sell” rating to a “hold” rating in a research note on Friday, April 3rd. Finally, Jefferies Financial Group started coverage on PennyMac Financial Services in a research report on Friday, December 19th. They set a “buy” rating and a $160.00 price objective on the stock. Six equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $131.14.
View Our Latest Stock Analysis on PennyMac Financial Services
PennyMac Financial Services Stock Down 0.0%
NYSE:PFSI opened at $91.39 on Friday. The company has a quick ratio of 0.34, a current ratio of 0.34 and a debt-to-equity ratio of 3.32. The stock’s fifty day moving average is $89.99 and its two-hundred day moving average is $116.77. PennyMac Financial Services has a 52 week low of $82.65 and a 52 week high of $160.36. The stock has a market capitalization of $4.77 billion, a price-to-earnings ratio of 9.83, a price-to-earnings-growth ratio of 0.53 and a beta of 1.52.
PennyMac Financial Services (NYSE:PFSI – Get Free Report) last released 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 firm had revenue of $538.01 million for the quarter, compared to analyst estimates of $639.81 million. During the same quarter last year, the company earned $1.95 earnings per share. The firm’s revenue for the quarter was up 14.4% on a year-over-year basis. Research analysts anticipate that PennyMac Financial Services will post 13.77 EPS for the current year.
Insider Buying and Selling
In other PennyMac Financial Services news, insider Derek Stark sold 1,066 shares of the stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $87.66, for a total value of $93,445.56. Following the sale, the insider owned 20,944 shares of the company’s stock, valued at $1,835,951.04. This trade represents a 4.84% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Daniel Stanley Perotti sold 2,925 shares of the 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 in the company, valued at $19,924,215. This represents a 1.35% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 51,280 shares of company stock worth $5,154,453 over the last 90 days. 15.80% of the stock is currently owned by company insiders.
Hedge Funds Weigh In On PennyMac Financial Services
Large investors have recently bought and sold shares of the business. Hudson Bay Capital Management LP purchased a new position in PennyMac Financial Services in the third quarter valued at $5,593,000. 140 Summer Partners LP purchased a new position in PennyMac Financial Services in the third quarter valued at $55,268,000. American Century Companies Inc. increased its holdings in PennyMac Financial Services by 7.5% in the third quarter. American Century Companies Inc. now owns 429,403 shares of the real estate investment trust’s stock valued at $53,195,000 after buying an additional 30,015 shares during the last quarter. Picton Mahoney Asset Management increased its holdings in PennyMac Financial Services by 554.1% in the third quarter. Picton Mahoney Asset Management now owns 28,872 shares of the real estate investment trust’s stock valued at $3,576,000 after buying an additional 24,458 shares during the last quarter. Finally, EMG Holdings L.P. purchased a new position in PennyMac Financial Services in the third quarter valued at $6,458,000. Hedge funds and other institutional investors own 57.87% of the company’s stock.
About PennyMac Financial Services
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.