Barclays Issues Pessimistic Forecast for PennyMac Financial Services (NYSE:PFSI) Stock Price

PennyMac Financial Services (NYSE:PFSI) had its price target cut by research analysts at Barclays from $71.00 to $67.00 in a note issued to investors on Monday, Benzinga reports. The firm presently has an “equal weight” rating on the real estate investment trust’s stock. Barclays‘s price target would indicate a potential upside of 2.61% from the company’s previous close.

A number of other equities analysts also recently weighed in on the stock. Wall Street Zen downgraded shares of PennyMac Financial Services from a “hold” rating to a “sell” rating in a research note on Saturday, August 1st. Wells Fargo & Company lowered their price objective on shares of PennyMac Financial Services from $95.00 to $85.00 and set an “overweight” rating for the company in a research note on Friday. Weiss Ratings cut shares of PennyMac Financial Services from a “sell (d+)” rating to a “sell (d)” rating in a research note on Thursday. Stephens dropped their price objective on PennyMac Financial Services from $91.00 to $78.00 and set an “equal weight” rating for the company in a report on Thursday, July 30th. Finally, Keefe, Bruyette & Woods lowered PennyMac Financial Services from an “outperform” rating to a “market perform” rating and cut their target price for the stock from $100.00 to $80.00 in a research report on Monday. Three investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, PennyMac Financial Services currently has an average rating of “Hold” and an average price target of $88.71.

PennyMac Financial Services Trading Up 3.8%

Shares of PFSI stock traded up $2.38 during trading hours on Monday, hitting $65.30. 700,342 shares of the company were exchanged, compared to its average volume of 669,135. The firm has a market cap of $3.39 billion, a PE ratio of 14.67 and a beta of 1.48. PennyMac Financial Services has a 1 year low of $57.52 and a 1 year high of $160.36. The company has a quick ratio of 0.38, a current ratio of 0.38 and a debt-to-equity ratio of 3.22. The firm has a fifty day moving average of $66.01 and a 200 day moving average of $85.02.

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

Institutional Investors Weigh In On PennyMac Financial Services

Several large investors have recently made changes to their positions in PFSI. MFN Partners Management LP acquired a new position in shares of PennyMac Financial Services during the 2nd quarter valued at $394,719,083. BlackRock Inc. purchased a new position in PennyMac Financial Services in the second quarter valued at about $202,735,000. Donald Smith & CO. Inc. purchased a new position in PennyMac Financial Services in the second quarter valued at about $163,940,000. Bank of New York Mellon Corp purchased a new position in PennyMac Financial Services in the second quarter valued at about $26,424,000. Finally, Bank of America Corp DE acquired a new position in shares of PennyMac Financial Services during the second quarter worth about $24,930,000. Institutional investors and hedge funds own 57.87% of the company’s stock.

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.