PennyMac Financial Services (NYSE:PFSI) Hits New 1-Year High – Here’s Why

by · The Cerbat Gem

PennyMac Financial Services, Inc. (NYSE:PFSI – Get Free Report)’s share price reached a new 52-week high on Thursday . The stock traded as high as $149.17 and last traded at $149.42, with a volume of 7042 shares changing hands. The stock had previously closed at $147.37.

Wall Street Analyst Weigh In

PFSI has been the topic of several research reports. Barclays upped their target price on PennyMac Financial Services from $139.00 to $158.00 and gave the company an “overweight” rating in a research report on Tuesday, January 6th. Wall Street Zen upgraded PennyMac Financial Services from a “hold” rating to a “buy” rating in a research note on Saturday, January 10th. Zacks Research upgraded PennyMac Financial Services to a “hold” rating in a research report on Friday, December 19th. Jefferies Financial Group initiated coverage on PennyMac Financial Services in a report on Friday, December 19th. They set a “buy” rating and a $160.00 target price for the company. Finally, BTIG Research upped their price target on shares of PennyMac Financial Services from $135.00 to $150.00 and gave the company a “buy” rating in a research note on Monday, December 29th. Six research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $153.43.

View Our Latest Report on PennyMac Financial Services

PennyMac Financial Services Price Performance

The company’s 50-day moving average is $133.47 and its two-hundred day moving average is $119.88. The company has a debt-to-equity ratio of 3.01, a current ratio of 0.36 and a quick ratio of 0.36. The firm has a market cap of $8.29 billion, a P/E ratio of 17.20, a PEG ratio of 0.69 and a beta of 1.57.

PennyMac Financial Services (NYSE:PFSI – Get Free Report) last released its earnings results on Tuesday, October 21st. The real estate investment trust reported $3.37 EPS for the quarter, beating the consensus estimate of $2.98 by $0.39. PennyMac Financial Services had a net margin of 25.21% and a return on equity of 11.69%. The firm had revenue of $632.90 million for the quarter, compared to analyst estimates of $573.46 million. During the same period last year, the firm earned $1.30 EPS. The business’s quarterly revenue was up 53.7% compared to the same quarter last year. Sell-side analysts anticipate that PennyMac Financial Services, Inc. will post 13.77 EPS for the current fiscal year.

PennyMac Financial Services Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, November 26th. Stockholders of record on Monday, November 17th were paid a $0.30 dividend. The ex-dividend date was Monday, November 17th. This represents a $1.20 annualized dividend and a dividend yield of 0.8%. PennyMac Financial Services’s dividend payout ratio (DPR) is presently 12.93%.

Insiders Place Their Bets

In other PennyMac Financial Services news, CEO David Spector sold 71,161 shares of the business’s stock in a transaction dated Thursday, October 23rd. The stock was sold at an average price of $128.07, for a total transaction of $9,113,589.27. Following the completion of the transaction, the chief executive officer owned 577,859 shares of the company’s stock, valued at approximately $74,006,402.13. The trade was a 10.96% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Anne Mccallion sold 27,771 shares of the firm’s stock in a transaction that occurred on Friday, October 24th. The shares were sold at an average price of $131.55, for a total transaction of $3,653,275.05. Following the completion of the sale, the director owned 1,547 shares in the company, valued at approximately $203,507.85. The trade was a 94.72% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 218,129 shares of company stock worth $28,409,467 over the last 90 days. Corporate insiders own 15.80% of the company’s stock.

Institutional Trading of PennyMac Financial Services

Several hedge funds and other institutional investors have recently made changes to their positions in PFSI. SG Americas Securities LLC raised its holdings in PennyMac Financial Services by 110.3% in the 4th quarter. SG Americas Securities LLC now owns 7,602 shares of the real estate investment trust’s stock valued at $1,002,000 after buying an additional 3,988 shares during the last quarter. GAMMA Investing LLC increased its position in PennyMac Financial Services by 97.3% in the 4th 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 period. Hudson Bay Capital Management LP bought a new position in shares of PennyMac Financial Services during the third quarter valued at $5,593,000. Goldentree Asset Management LP raised its stake in shares of PennyMac Financial Services by 0.8% during the third quarter. Goldentree Asset Management LP now owns 296,441 shares of the real estate investment trust’s stock valued at $36,649,000 after acquiring an additional 2,242 shares during the last quarter. Finally, CIBC Private Wealth Group LLC acquired a new position in shares of PennyMac Financial Services during the third quarter worth $78,000. 57.87% of the stock is currently owned by institutional investors.

About PennyMac Financial Services

(Get Free Report)

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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