PennyMac Financial Services (NYSE:PFSI) Reaches New 1-Year Low – Here’s What Happened

PennyMac Financial Services, Inc. (NYSE:PFSI)’s share price reached a new 52-week low during mid-day trading on Thursday . The stock traded as low as $69.81 and last traded at $69.8650, with a volume of 10999 shares trading hands. The stock had previously closed at $70.91.

Analysts Set New Price Targets

PFSI has been the topic of a number of research analyst reports. Piper Sandler cut PennyMac Financial Services from an “overweight” rating to a “neutral” rating and dropped their target price for the stock from $106.00 to $86.00 in a report on Thursday, July 30th. Stephens decreased their price target on PennyMac Financial Services from $91.00 to $78.00 and set an “equal weight” rating for the company in a research note on Thursday, July 30th. Barclays lowered their price target on PennyMac Financial Services from $93.00 to $85.00 and set an “equal weight” rating on the stock in a research report on Thursday, July 30th. Weiss Ratings reissued a “sell (d+)” rating on shares of PennyMac Financial Services in a research note on Monday, August 3rd. Finally, Wall Street Zen lowered PennyMac Financial Services from a “hold” rating to a “sell” rating in a report on Saturday, August 1st. Four analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $104.88.

PennyMac Financial Services Price Performance

The firm has a market capitalization of $3.62 billion, a P/E ratio of 9.56, a P/E/G ratio of 0.68 and a beta of 1.44. The business’s fifty day moving average is $78.48 and its 200 day moving average is $84.10. The company has a current ratio of 0.38, a quick ratio of 0.38 and a debt-to-equity ratio of 3.22.

PennyMac Financial Services (NYSE:PFSI) last issued its earnings results on Wednesday, July 29th. The real estate investment trust reported $1.39 earnings per share for the quarter, missing analysts’ consensus estimates of $2.11 by ($0.72). PennyMac Financial Services had a return on equity of 11.18% and a net margin of 17.74%.PennyMac Financial Services’s revenue for the quarter was up 11.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.54 EPS. As a group, analysts forecast that PennyMac Financial Services, Inc. will post 7.36 EPS for the current year.

PennyMac Financial Services Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 27th. Stockholders of record on Monday, August 17th were paid a dividend of $0.30 per share. The ex-dividend date of this dividend was Monday, August 17th. This represents a $1.20 annualized dividend and a dividend yield of 1.7%. PennyMac Financial Services’s dividend payout ratio (DPR) is currently 16.48%.

Insider Activity

In related news, CAO Gregory Hendry sold 2,943 shares of PennyMac Financial Services stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $81.71, for a total value of $240,472.53. Following the transaction, the chief accounting officer directly owned 48,968 shares in the company, valued at $4,001,175.28. The trade was a 5.67% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 15.20% of the stock is owned by insiders.

Institutional Investors Weigh In On PennyMac Financial Services

Several hedge funds have recently modified their holdings of PFSI. MFN Partners Management LP purchased a new position in shares of PennyMac Financial Services in the second quarter worth approximately $394,719,083. California State Teachers Retirement System lifted its position in shares of PennyMac Financial Services by 8,156.5% in the 2nd quarter. California State Teachers Retirement System now owns 3,011,483 shares of the real estate investment trust’s stock valued at $262,300,000 after acquiring an additional 2,975,009 shares in the last quarter. BlackRock Inc. acquired a new position in PennyMac Financial Services in the 2nd quarter worth approximately $202,735,000. Donald Smith & CO. Inc. acquired a new position in PennyMac Financial Services in the 2nd quarter worth approximately $163,940,000. Finally, Norges Bank purchased a new position in PennyMac Financial Services during the 4th quarter worth approximately $44,287,000. 57.87% of the stock is owned by hedge funds and other institutional investors.

PennyMac Financial Services Company Profile

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.