PennyMac Financial Services (NYSE:PFSI) Shares Gap Down on Analyst Downgrade

Shares of PennyMac Financial Services, Inc. (NYSE:PFSI) gapped down prior to trading on Thursday after Keefe, Bruyette & Woods lowered their price target on the stock from $105.00 to $100.00. The stock had previously closed at $92.07, but opened at $85.32. Keefe, Bruyette & Woods currently has an outperform rating on the stock. PennyMac Financial Services shares last traded at $85.85, with a volume of 297,138 shares.

Several other analysts also recently weighed in on the company. Barclays increased their target price on PennyMac Financial Services from $103.00 to $112.00 and gave the company an “overweight” rating in a research note on Tuesday, April 9th. Wedbush reiterated an “outperform” rating and issued a $110.00 price objective on shares of PennyMac Financial Services in a research report on Thursday. Deutsche Bank Aktiengesellschaft cut their target price on PennyMac Financial Services from $115.00 to $112.00 and set a “buy” rating for the company in a research report on Thursday. Finally, StockNews.com downgraded PennyMac Financial Services from a “hold” rating to a “sell” rating in a research report on Thursday. One analyst has rated the stock with a sell rating, one has assigned a hold rating and six have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $97.75.

Insiders Place Their Bets

In other news, CFO Daniel Stanley Perotti sold 11,400 shares of the company’s stock in a transaction that occurred on Thursday, February 15th. The stock was sold at an average price of $88.50, for a total value of $1,008,900.00. Following the transaction, the chief financial officer now owns 257,897 shares of the company’s stock, valued at $22,823,884.50. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. In other PennyMac Financial Services news, insider James Follette sold 2,617 shares of the company’s stock in a transaction on Tuesday, February 27th. The stock was sold at an average price of $86.24, for a total transaction of $225,690.08. Following the completion of the sale, the insider now directly owns 7,257 shares in the company, valued at $625,843.68. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Daniel Stanley Perotti sold 11,400 shares of the company’s stock in a transaction on Thursday, February 15th. The stock was sold at an average price of $88.50, for a total value of $1,008,900.00. Following the sale, the chief financial officer now owns 257,897 shares of the company’s stock, valued at $22,823,884.50. The disclosure for this sale can be found here. Insiders have sold a total of 87,802 shares of company stock valued at $7,666,108 over the last 90 days. 17.40% of the stock is currently owned by insiders.

Institutional Trading of PennyMac Financial Services

A number of institutional investors and hedge funds have recently bought and sold shares of PFSI. Qube Research & Technologies Ltd bought a new position in shares of PennyMac Financial Services during the 3rd quarter worth about $3,370,000. Graham Capital Management L.P. bought a new position in shares of PennyMac Financial Services during the 3rd quarter worth about $1,237,000. Adage Capital Partners GP L.L.C. bought a new position in shares of PennyMac Financial Services during the 3rd quarter worth about $3,657,000. Invesco Ltd. boosted its position in shares of PennyMac Financial Services by 47.6% during the 3rd quarter. Invesco Ltd. now owns 490,297 shares of the real estate investment trust’s stock worth $32,654,000 after purchasing an additional 158,181 shares in the last quarter. Finally, Deutsche Bank AG lifted its position in PennyMac Financial Services by 13.4% in the 3rd quarter. Deutsche Bank AG now owns 13,409 shares of the real estate investment trust’s stock valued at $893,000 after acquiring an additional 1,587 shares in the last quarter. 57.87% of the stock is currently owned by institutional investors and hedge funds.

PennyMac Financial Services Stock Performance

The firm has a market cap of $4.39 billion, a P/E ratio of 30.21, a PEG ratio of 0.61 and a beta of 1.67. The company has a current ratio of 0.37, a quick ratio of 0.37 and a debt-to-equity ratio of 1.90. The company’s 50-day moving average is $87.83 and its two-hundred day moving average is $83.05.

PennyMac Financial Services (NYSE:PFSI) last announced its quarterly earnings results on Wednesday, April 24th. The real estate investment trust reported $2.48 earnings per share for the quarter, beating the consensus estimate of $2.34 by $0.14. PennyMac Financial Services had a net margin of 10.94% and a return on equity of 10.51%. The business had revenue of $305.66 million for the quarter, compared to analysts’ expectations of $422.87 million. As a group, equities analysts predict that PennyMac Financial Services, Inc. will post 10.41 EPS for the current fiscal year.

PennyMac Financial Services Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 24th. Investors of record on Tuesday, May 14th will be given a $0.20 dividend. The ex-dividend date is Monday, May 13th. This represents a $0.80 annualized dividend and a yield of 0.92%. PennyMac Financial Services’s payout ratio is 27.78%.

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.