PennyMac Financial Services (NYSE:PFSI) Shares Gap Down Following Weak Earnings

PennyMac Financial Services, Inc. (NYSE:PFSI) shares gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $114.82, but opened at $106.67. PennyMac Financial Services shares last traded at $108.43, with a volume of 17,611 shares changing hands.

The real estate investment trust reported $2.88 earnings per share for the quarter, missing the consensus estimate of $3.09 by ($0.21). PennyMac Financial Services had a return on equity of 15.13% and a net margin of 11.45%.

PennyMac Financial Services Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Sunday, February 23rd. Stockholders of record on Thursday, February 13th will be given a $0.30 dividend. The ex-dividend date of this dividend is Thursday, February 13th. This represents a $1.20 annualized dividend and a dividend yield of 1.14%. PennyMac Financial Services’s dividend payout ratio is presently 38.10%.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on PFSI shares. Wells Fargo & Company raised their price objective on shares of PennyMac Financial Services from $110.00 to $125.00 and gave the stock an “overweight” rating in a research note on Thursday, October 24th. Piper Sandler dropped their price objective on shares of PennyMac Financial Services from $132.00 to $130.00 and set an “overweight” rating for the company in a research note on Friday. Keefe, Bruyette & Woods dropped their price objective on shares of PennyMac Financial Services from $112.00 to $111.00 and set a “market perform” rating for the company in a research note on Tuesday, December 10th. Wedbush reissued an “outperform” rating and set a $130.00 price objective on shares of PennyMac Financial Services in a research note on Wednesday, October 23rd. Finally, Barclays raised their price objective on shares of PennyMac Financial Services from $112.00 to $125.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 8th. One analyst has rated the stock with a sell rating, one has assigned a hold rating and five have given a buy rating to the stock. Based on data from MarketBeat.com, PennyMac Financial Services currently has a consensus rating of “Moderate Buy” and an average target price of $122.17.

Insiders Place Their Bets

In other PennyMac Financial Services news, CFO Daniel Stanley Perotti sold 10,500 shares of PennyMac Financial Services stock in a transaction on Friday, November 15th. The shares were sold at an average price of $100.02, for a total value of $1,050,210.00. Following the transaction, the chief financial officer now owns 225,497 shares in the company, valued at $22,554,209.94. This trade represents a 4.45 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO David Spector sold 5,000 shares of PennyMac Financial Services stock in a transaction on Wednesday, January 8th. The shares were sold at an average price of $99.38, for a total transaction of $496,900.00. Following the completion of the transaction, the chief executive officer now owns 165,604 shares in the company, valued at approximately $16,457,725.52. This trade represents a 2.93 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 147,844 shares of company stock valued at $15,079,791. Company insiders own 16.60% of the company’s stock.

Hedge Funds Weigh In On PennyMac Financial Services

Hedge funds have recently made changes to their positions in the stock. Harbor Capital Advisors Inc. acquired a new position in shares of PennyMac Financial Services in the 3rd quarter valued at $37,000. Blue Trust Inc. boosted its holdings in shares of PennyMac Financial Services by 59.5% in the 3rd quarter. Blue Trust Inc. now owns 702 shares of the real estate investment trust’s stock valued at $80,000 after purchasing an additional 262 shares during the last quarter. KBC Group NV boosted its holdings in shares of PennyMac Financial Services by 20.3% in the 3rd quarter. KBC Group NV now owns 1,340 shares of the real estate investment trust’s stock valued at $153,000 after purchasing an additional 226 shares during the last quarter. Quantbot Technologies LP boosted its holdings in shares of PennyMac Financial Services by 23.7% in the 3rd quarter. Quantbot Technologies LP now owns 1,516 shares of the real estate investment trust’s stock valued at $173,000 after purchasing an additional 290 shares during the last quarter. Finally, Verition Fund Management LLC acquired a new position in shares of PennyMac Financial Services in the 3rd quarter valued at $203,000. Institutional investors and hedge funds own 57.87% of the company’s stock.

PennyMac Financial Services Stock Performance

The company has a market cap of $5.38 billion, a price-to-earnings ratio of 33.31, a price-to-earnings-growth ratio of 0.21 and a beta of 1.78. The stock’s fifty day simple moving average is $104.65 and its two-hundred day simple moving average is $104.42. The company has a debt-to-equity ratio of 2.75, a quick ratio of 0.38 and a current ratio of 0.38.

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.