PennyMac Financial Services (NYSE:PFSI) Price Target Cut to $85.00 by Analysts at Wells Fargo & Company

PennyMac Financial Services (NYSE:PFSI) had its price objective decreased by Wells Fargo & Company from $95.00 to $85.00 in a research report released on Friday morning,Benzinga reports. Wells Fargo & Company currently has an overweight rating on the real estate investment trust’s stock.

Other research analysts have also recently issued research reports about the stock. Barclays cut their price objective on shares of PennyMac Financial Services from $85.00 to $71.00 and set an “equal weight” rating on the stock in a research report on Monday, October 5th. Keefe, Bruyette & Woods lowered their target price on shares of PennyMac Financial Services from $108.00 to $100.00 and set an “outperform” rating for the company in a report on Friday, July 31st. Piper Sandler dropped their price target on shares of PennyMac Financial Services from $86.00 to $71.00 and set a “neutral” rating for the company in a research note on Friday, October 9th. Weiss Ratings downgraded shares of PennyMac Financial Services from a “sell (d+)” rating to a “sell (d)” rating in a report on Thursday. Finally, Wall Street Zen downgraded shares of PennyMac Financial Services from a “hold” rating to a “sell” rating in a report on Saturday, August 1st. Four equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $92.14.

PennyMac Financial Services Stock Performance

NYSE PFSI opened at $62.93 on Friday. The company has a market cap of $3.27 billion, a P/E ratio of 14.14 and a beta of 1.45. The company has a debt-to-equity ratio of 3.22, a quick ratio of 0.38 and a current ratio of 0.38. The business’s 50 day moving average price is $66.01 and its 200-day moving average price is $85.02. PennyMac Financial Services has a fifty-two week low of $57.52 and a fifty-two week high of $160.36.

PennyMac Financial Services (NYSE:PFSI) last released its quarterly earnings results on Thursday, October 29th. The real estate investment trust reported $1.05 earnings per share for the quarter, missing the consensus estimate of $1.27 by ($0.22). The company had revenue of $502.00 million for the quarter, compared to analysts’ expectations of $531.77 million. PennyMac Financial Services had a net margin of 11.72% and a return on equity of 8.20%. The business’s quarterly revenue was down 25.9% on a year-over-year basis. During the same quarter in the previous year, the company posted $3.37 EPS. Sell-side analysts predict that PennyMac Financial Services will post 6.78 earnings per share for the current year.

PennyMac Financial Services Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, November 27th. Stockholders of record on Monday, November 16th will be paid a dividend of $0.30 per share. The ex-dividend date is Monday, November 16th. This represents a $1.20 annualized dividend and a dividend yield of 1.9%. PennyMac Financial Services’s dividend payout ratio (DPR) is currently 16.48%.

Institutional Trading of PennyMac Financial Services

A number of hedge funds have recently added to or reduced their stakes in PFSI. MFN Partners Management LP purchased a new stake in PennyMac Financial Services during the second quarter worth $394,719,083. BlackRock Inc. purchased a new position in shares of PennyMac Financial Services in the 2nd quarter valued at $202,735,000. Dimensional Fund Advisors LP increased its holdings in shares of PennyMac Financial Services by 7.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,916,271 shares of the real estate investment trust’s stock valued at $167,474,000 after acquiring an additional 126,902 shares during the period. Donald Smith & CO. Inc. purchased a new position in shares of PennyMac Financial Services in the 2nd quarter valued at $163,940,000. Finally, Senvest Management LLC increased its holdings in shares of PennyMac Financial Services by 21.9% in the 1st quarter. Senvest Management LLC now owns 508,633 shares of the real estate investment trust’s stock valued at $44,455,000 after acquiring an additional 91,300 shares during the period. 57.87% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about PennyMac Financial Services

Here are the key news stories impacting PennyMac Financial Services this week:

• Positive Sentiment: PennyMac declared a quarterly dividend of $0.30 per share, payable November 27 to shareholders of record as of November 16. The $1.20 annualized payout represents a dividend yield of approximately 1.9%, offering income support for investors.
• Neutral Sentiment: Wells Fargo lowered its price target for PFSI from $95 to $85 but maintained an “overweight” rating. The revised target still implies substantial potential upside from recent levels, while the reduction reflects more cautious near-term expectations. Wells Fargo price target update
• Neutral Sentiment: The company’s earnings release and conference call provided additional detail on third-quarter performance and management commentary. PennyMac third-quarter earnings release PennyMac earnings call transcript
• Negative Sentiment: Third-quarter earnings were weaker than expected. PennyMac reported adjusted earnings of $1.05 per share versus consensus estimates ranging from $1.27 to $1.37, while revenue of $502 million missed the $531.77 million consensus estimate. Revenue declined 25.9% year over year, and earnings dropped sharply from $3.37 per share in the prior-year quarter. The earnings and revenue misses are the primary reasons PFSI shares have decreased. PennyMac third-quarter earnings analysis

PennyMac Financial Services Company Profile

PennyMac Financial Services, Inc (NYSE: PFSI) is a specialty financial services company focused on the U.S. residential mortgage market. Through its subsidiaries, the company originates, acquires, and services residential mortgage loans, with an emphasis on conventional, government-backed, and other mortgage products.

PennyMac’s primary businesses include mortgage production, loan servicing, and investment management. Its production platform acquires and originates loans through correspondent relationships with banks and other lenders, as well as through direct-to-consumer and broker channels.