PennyMac Financial Services (NYSE:PFSI) Trading Down 3.3% – What’s Next?

PennyMac Financial Services, Inc. (NYSE:PFSI)’s share price traded down 3.3% on Friday . The company traded as low as $106.55 and last traded at $106.73. 193,802 shares traded hands during trading, a decline of 23% from the average session volume of 252,855 shares. The stock had previously closed at $110.40.

Analyst Ratings Changes

A number of brokerages recently issued reports on PFSI. StockNews.com downgraded PennyMac Financial Services from a “hold” rating to a “sell” rating in a research report on Wednesday, July 3rd. Piper Sandler boosted their price objective on PennyMac Financial Services from $112.00 to $125.00 and gave the stock an “overweight” rating in a report on Tuesday. Keefe, Bruyette & Woods downgraded shares of PennyMac Financial Services from an “outperform” rating to a “market perform” rating and set a $102.00 target price on the stock. in a research note on Monday, July 22nd. Finally, Wedbush boosted their price target on shares of PennyMac Financial Services from $110.00 to $120.00 and gave the stock an “outperform” rating in a research note on Wednesday, July 24th. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and four have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $109.33.

PennyMac Financial Services Stock Down 3.3 %

The company has a quick ratio of 0.37, a current ratio of 0.37 and a debt-to-equity ratio of 2.75. The company has a 50-day moving average of $104.93 and a two-hundred day moving average of $96.34. The company has a market capitalization of $5.44 billion, a P/E ratio of 37.09, a price-to-earnings-growth ratio of 0.73 and a beta of 1.77.

PennyMac Financial Services (NYSE:PFSI) last posted its quarterly earnings data on Tuesday, July 23rd. The real estate investment trust reported $1.85 EPS for the quarter, missing analysts’ consensus estimates of $2.65 by ($0.80). PennyMac Financial Services had a net margin of 13.13% and a return on equity of 12.69%. The firm had revenue of $406.13 million for the quarter, compared to analysts’ expectations of $469.64 million. During the same quarter last year, the company posted $1.11 EPS. The firm’s revenue was up 20.7% compared to the same quarter last year. On average, research analysts predict that PennyMac Financial Services, Inc. will post 10.61 EPS for the current year.

PennyMac Financial Services Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 23rd. Stockholders of record on Tuesday, August 13th were paid a $0.30 dividend. The ex-dividend date of this dividend was Tuesday, August 13th. This is a boost from PennyMac Financial Services’s previous quarterly dividend of $0.20. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.12%. PennyMac Financial Services’s dividend payout ratio is 41.67%.

Insider Activity at PennyMac Financial Services

In related news, insider Steven Richard Bailey sold 14,130 shares of the stock in a transaction dated Monday, September 16th. The stock was sold at an average price of $116.88, for a total transaction of $1,651,514.40. Following the completion of the sale, the insider now owns 14,670 shares in the company, valued at approximately $1,714,629.60. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In other news, Director Anne Mccallion sold 23,829 shares of the firm’s stock in a transaction dated Monday, August 26th. The stock was sold at an average price of $103.14, for a total transaction of $2,457,723.06. Following the completion of the transaction, the director now owns 1,854 shares in the company, valued at $191,221.56. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Steven Richard Bailey sold 14,130 shares of PennyMac Financial Services stock in a transaction dated Monday, September 16th. The stock was sold at an average price of $116.88, for a total value of $1,651,514.40. Following the completion of the sale, the insider now directly owns 14,670 shares in the company, valued at $1,714,629.60. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 89,855 shares of company stock worth $9,492,499. 16.60% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Edgestream Partners L.P. lifted its stake in shares of PennyMac Financial Services by 256.9% during the 2nd quarter. Edgestream Partners L.P. now owns 84,861 shares of the real estate investment trust’s stock worth $8,028,000 after purchasing an additional 61,087 shares during the last quarter. American Century Companies Inc. boosted its stake in shares of PennyMac Financial Services by 13.2% during the 2nd quarter. American Century Companies Inc. now owns 347,979 shares of the real estate investment trust’s stock worth $32,919,000 after acquiring an additional 40,676 shares in the last quarter. EMG Holdings L.P. grew its position in shares of PennyMac Financial Services by 107.4% during the 2nd quarter. EMG Holdings L.P. now owns 64,451 shares of the real estate investment trust’s stock valued at $6,097,000 after acquiring an additional 33,370 shares during the period. Quantbot Technologies LP purchased a new stake in shares of PennyMac Financial Services in the first quarter valued at approximately $2,570,000. Finally, Denali Advisors LLC lifted its position in shares of PennyMac Financial Services by 179.2% during the 1st quarter. Denali Advisors LLC now owns 41,600 shares of the real estate investment trust’s stock valued at $3,789,000 after buying an additional 26,700 shares in the last quarter. 57.87% of the stock is 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.