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

PennyMac Financial Services, Inc. (NYSE:PFSI)’s share price gapped down prior to trading on Thursday after Deutsche Bank Aktiengesellschaft lowered their price target on the stock from $115.00 to $112.00. The stock had previously closed at $92.07, but opened at $85.32. Deutsche Bank Aktiengesellschaft currently has a buy rating on the stock. PennyMac Financial Services shares last traded at $85.85, with a volume of 297,138 shares trading hands.

A number of other analysts have also issued reports on the company. StockNews.com raised PennyMac Financial Services from a “sell” rating to a “hold” rating in a research note on Thursday, April 11th. Wedbush reissued an “outperform” rating and issued a $110.00 target price on shares of PennyMac Financial Services in a research note on Thursday. Keefe, Bruyette & Woods upgraded shares of PennyMac Financial Services from a “market perform” rating to an “outperform” rating and increased their price objective for the stock from $100.00 to $105.00 in a research note on Tuesday, April 9th. Finally, Barclays increased their price objective on PennyMac Financial Services from $103.00 to $112.00 and gave the company an “overweight” rating in a report on Tuesday, April 9th. Two equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $98.38.

Insider Activity

In other PennyMac Financial Services news, CEO David Spector sold 15,000 shares of the stock in a transaction dated Tuesday, February 20th. The stock was sold at an average price of $87.18, for a total transaction of $1,307,700.00. Following the sale, the chief executive officer now directly owns 270,604 shares of the company’s stock, valued at approximately $23,591,256.72. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In other news, CEO David Spector sold 15,000 shares of the stock in a transaction that occurred on Tuesday, February 20th. The stock was sold at an average price of $87.18, for a total transaction of $1,307,700.00. Following the completion of the transaction, the chief executive officer now directly owns 270,604 shares of the company’s stock, valued at approximately $23,591,256.72. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Doug Jones sold 17,079 shares of the business’s stock in a transaction on Monday, March 11th. The shares were sold at an average price of $86.10, for a total transaction of $1,470,501.90. Following the sale, the director now directly owns 23,892 shares of the company’s stock, valued at $2,057,101.20. The disclosure for this sale can be found here. Over the last three months, insiders have sold 87,802 shares of company stock valued at $7,666,108. Company insiders own 17.40% of the company’s stock.

Hedge Funds Weigh In On PennyMac Financial Services

Several institutional investors and hedge funds have recently modified their holdings of the stock. Dimensional Fund Advisors LP increased its holdings in PennyMac Financial Services by 2.7% during the 4th quarter. Dimensional Fund Advisors LP now owns 2,691,512 shares of the real estate investment trust’s stock worth $237,851,000 after purchasing an additional 70,178 shares in the last quarter. Vanguard Group Inc. grew its holdings in shares of PennyMac Financial Services by 0.8% during the fourth quarter. Vanguard Group Inc. now owns 2,610,041 shares of the real estate investment trust’s stock worth $230,649,000 after purchasing an additional 19,748 shares during the last quarter. Invesco Ltd. grew 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 buying an additional 158,181 shares during the period. Charles Schwab Investment Management Inc. boosted its holdings in PennyMac Financial Services by 1.0% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 396,745 shares of the real estate investment trust’s stock worth $35,060,000 after acquiring an additional 3,947 shares in the last quarter. Finally, Norges Bank acquired a new stake in PennyMac Financial Services in the fourth quarter valued at approximately $31,258,000. 57.87% of the stock is currently owned by hedge funds and other institutional investors.

PennyMac Financial Services Stock Down 6.4 %

The stock has a 50 day moving average price of $87.88 and a 200 day moving average price of $82.82. The company has a debt-to-equity ratio of 1.90, a quick ratio of 0.37 and a current ratio of 0.37. The company has a market capitalization of $4.35 billion, a P/E ratio of 31.42, a PEG ratio of 0.61 and a beta of 1.67.

PennyMac Financial Services (NYSE:PFSI) last posted its earnings results on Wednesday, April 24th. The real estate investment trust reported $2.48 earnings per share for the quarter, beating analysts’ consensus estimates of $2.34 by $0.14. The firm had revenue of $305.66 million during the quarter, compared to analyst estimates of $422.87 million. PennyMac Financial Services had a net margin of 10.32% and a return on equity of 7.69%. Equities research analysts forecast that PennyMac Financial Services, Inc. will post 10.41 earnings per share for the current fiscal year.

PennyMac Financial Services Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, February 23rd. Shareholders of record on Tuesday, February 13th were paid a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a yield of 0.93%. The ex-dividend date was Monday, February 12th. PennyMac Financial Services’s dividend payout ratio is currently 29.52%.

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.