PennyMac Financial Services (NYSE:PFSI) Downgraded by Zacks Investment Research to Hold

Zacks Investment Research cut shares of PennyMac Financial Services (NYSE:PFSI) from a strong-buy rating to a hold rating in a research note published on Thursday morning, Zacks.com reports.

According to Zacks, “PennyMac Financial Services, Inc. provides financial services primarily in the United States. The Company conducts its business in two segments: mortgage banking and investment management. Mortgage banking segment offers correspondent and retail lending businesses and loan servicing business. Investment management segment offers investment advisory and investment management services. PennyMac Financial Services, Inc. is headquartered in Moorpark, California. “

A number of other brokerages have also recently commented on PFSI. Barclays restated a buy rating and set a $37.00 target price on shares of PennyMac Financial Services in a report on Friday, October 25th. Piper Jaffray Companies raised their target price on PennyMac Financial Services from $42.00 to $44.00 and gave the company an overweight rating in a report on Tuesday, November 19th. Keefe, Bruyette & Woods cut PennyMac Financial Services from an outperform rating to a market perform rating and set a $36.00 target price for the company. in a report on Sunday, December 8th. Finally, ValuEngine cut PennyMac Financial Services from a sell rating to a strong sell rating in a report on Thursday, December 26th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and four have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of Hold and an average target price of $34.50.

Shares of NYSE:PFSI traded down $0.03 during midday trading on Thursday, reaching $33.87. 345,935 shares of the company’s stock were exchanged, compared to its average volume of 377,656. The firm’s 50 day simple moving average is $33.80 and its two-hundred day simple moving average is $30.41. The company has a debt-to-equity ratio of 2.18, a current ratio of 0.18 and a quick ratio of 0.18. The stock has a market cap of $2.66 billion, a price-to-earnings ratio of 9.30, a P/E/G ratio of 0.74 and a beta of 0.41. PennyMac Financial Services has a fifty-two week low of $20.36 and a fifty-two week high of $34.74.

PennyMac Financial Services (NYSE:PFSI) last issued its quarterly earnings data on Thursday, October 31st. The real estate investment trust reported $1.51 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.25 by $0.26. PennyMac Financial Services had a return on equity of 15.84% and a net margin of 22.54%. The firm had revenue of $436.35 million during the quarter, compared to the consensus estimate of $368.20 million. Equities research analysts predict that PennyMac Financial Services will post 4.51 earnings per share for the current fiscal year.

In other news, Chairman Stanford L. Kurland sold 15,000 shares of PennyMac Financial Services stock in a transaction dated Friday, November 8th. The stock was sold at an average price of $30.72, for a total value of $460,800.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Anne Mccallion sold 10,000 shares of PennyMac Financial Services stock in a transaction dated Tuesday, November 5th. The shares were sold at an average price of $30.74, for a total value of $307,400.00. Insiders sold a total of 190,628 shares of company stock valued at $6,129,741 in the last quarter. Company insiders own 22.17% of the company’s stock.

Hedge funds have recently bought and sold shares of the stock. Price T Rowe Associates Inc. MD increased its position in PennyMac Financial Services by 8.4% during the second quarter. Price T Rowe Associates Inc. MD now owns 6,080,275 shares of the real estate investment trust’s stock worth $134,860,000 after buying an additional 472,076 shares during the period. State Street Corp increased its holdings in shares of PennyMac Financial Services by 9.2% in the third quarter. State Street Corp now owns 565,255 shares of the real estate investment trust’s stock valued at $17,172,000 after purchasing an additional 47,473 shares during the period. Northern Trust Corp increased its holdings in shares of PennyMac Financial Services by 6.5% in the second quarter. Northern Trust Corp now owns 359,441 shares of the real estate investment trust’s stock valued at $7,973,000 after purchasing an additional 21,954 shares during the period. Nuveen Asset Management LLC acquired a new position in shares of PennyMac Financial Services in the second quarter valued at approximately $6,812,000. Finally, Millennium Management LLC acquired a new position in shares of PennyMac Financial Services in the third quarter valued at approximately $7,065,000. Hedge funds and other institutional investors own 50.94% of the company’s stock.

About PennyMac Financial Services

PennyMac Financial Services, Inc, through its subsidiaries, engages in the mortgage banking and investment management activities in the United States. It operates through three segments: Loan Production, Loan Servicing, and Investment Management. The Loan Production segment is involved in the origination, acquisition, and sale of mortgage loans.

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