PennyMac Financial Services (NYSE:PFSI) Price Target Raised to $121.00

PennyMac Financial Services (NYSE:PFSI) had its target price increased by Keefe, Bruyette & Woods from $117.00 to $121.00 in a research note issued to investors on Wednesday,Benzinga reports. They currently have an outperform rating on the real estate investment trust’s stock.

A number of other brokerages have also issued reports on PFSI. Piper Sandler cut their target price on PennyMac Financial Services from $125.00 to $121.00 and set an “overweight” rating on the stock in a research report on Wednesday, July 23rd. Wall Street Zen raised PennyMac Financial Services from a “sell” rating to a “hold” rating in a research report on Friday, August 22nd. Wells Fargo & Company started coverage on PennyMac Financial Services in a research report on Monday, August 25th. They set an “overweight” rating and a $115.00 price target on the stock. UBS Group dropped their price target on PennyMac Financial Services from $115.00 to $110.00 and set a “neutral” rating on the stock in a research report on Thursday, July 24th. Finally, Barclays dropped their price target on PennyMac Financial Services from $124.00 to $119.00 and set an “overweight” rating on the stock in a research report on Tuesday, July 8th. Five research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $119.33.

PennyMac Financial Services Stock Up 2.0%

PFSI opened at $117.62 on Wednesday. The company has a debt-to-equity ratio of 3.03, a current ratio of 0.34 and a quick ratio of 0.34. PennyMac Financial Services has a 12 month low of $85.74 and a 12 month high of $119.60. The stock has a market capitalization of $6.08 billion, a price-to-earnings ratio of 16.31 and a beta of 1.51. The business has a 50-day moving average of $102.73 and a two-hundred day moving average of $99.55.

PennyMac Financial Services (NYSE:PFSI) last released its quarterly earnings results on Tuesday, July 22nd. The real estate investment trust reported $1.02 EPS for the quarter, missing the consensus estimate of $3.01 by ($1.99). PennyMac Financial Services had a return on equity of 12.18% and a net margin of 22.00%.The company had revenue of $444.73 million for the quarter, compared to analyst estimates of $547.44 million. During the same period last year, the firm posted $1.85 earnings per share. The business’s revenue was up 9.5% on a year-over-year basis. On average, research analysts expect that PennyMac Financial Services will post 13.77 earnings per share for the current year.

PennyMac Financial Services Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Wednesday, August 13th were issued a $0.30 dividend. The ex-dividend date was Wednesday, August 13th. This represents a $1.20 annualized dividend and a dividend yield of 1.0%. PennyMac Financial Services’s dividend payout ratio is 16.64%.

Insider Transactions at PennyMac Financial Services

In other news, insider Derek Stark sold 4,750 shares of the company’s stock in a transaction on Monday, August 25th. The stock was sold at an average price of $109.56, for a total value of $520,410.00. Following the completion of the sale, the insider owned 20,621 shares in the company, valued at $2,259,236.76. This represents a 18.72% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CEO David Spector sold 5,000 shares of the company’s stock in a transaction on Monday, August 18th. The shares were sold at an average price of $105.73, for a total value of $528,650.00. Following the completion of the sale, the chief executive officer owned 130,604 shares of the company’s stock, valued at approximately $13,808,760.92. This trade represents a 3.69% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 32,707 shares of company stock worth $3,446,223. Corporate insiders own 15.80% of the company’s stock.

Institutional Investors Weigh In On PennyMac Financial Services

Several hedge funds have recently modified their holdings of PFSI. Orbis Allan Gray Ltd lifted its holdings in shares of PennyMac Financial Services by 447.5% during the first quarter. Orbis Allan Gray Ltd now owns 926,775 shares of the real estate investment trust’s stock valued at $92,779,000 after purchasing an additional 757,489 shares during the last quarter. Norges Bank purchased a new stake in shares of PennyMac Financial Services during the second quarter valued at $39,976,000. Goldentree Asset Management LP purchased a new stake in shares of PennyMac Financial Services during the second quarter valued at $29,249,000. Millennium Management LLC lifted its holdings in shares of PennyMac Financial Services by 104.5% during the fourth quarter. Millennium Management LLC now owns 518,574 shares of the real estate investment trust’s stock valued at $52,967,000 after purchasing an additional 264,956 shares during the last quarter. Finally, Philadelphia Financial Management of San Francisco LLC purchased a new stake in shares of PennyMac Financial Services during the first quarter valued at $18,701,000. 57.87% of the stock is owned by hedge funds and other institutional investors.

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.