Zacks Investment Research Upgrades PennyMac Financial Services (NYSE:PFSI) to Strong-Buy

Zacks Investment Research upgraded shares of PennyMac Financial Services (NYSE:PFSI) from a hold rating to a strong-buy rating in a research report released on Wednesday, Zacks.com reports. Zacks Investment Research currently has $26.00 price target on the real estate investment trust’s stock.

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. “

Separately, Wedbush reissued an outperform rating on shares of PennyMac Financial Services in a research note on Thursday, April 4th. Two investment analysts have rated the stock with a hold rating, three have given a buy rating and one has issued a strong buy rating to the company’s stock. PennyMac Financial Services currently has an average rating of Buy and a consensus target price of $24.67.



NYSE:PFSI opened at $23.42 on Wednesday. The company has a market capitalization of $1.83 billion, a price-to-earnings ratio of 9.44, a price-to-earnings-growth ratio of 0.78 and a beta of 0.47. PennyMac Financial Services has a 52-week low of $18.77 and a 52-week high of $24.50. The company’s fifty day simple moving average is $22.09. The company has a quick ratio of 0.19, a current ratio of 0.19 and a debt-to-equity ratio of 1.64.

PennyMac Financial Services (NYSE:PFSI) last posted its quarterly earnings data on Thursday, May 2nd. The real estate investment trust reported $0.58 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.62 by ($0.04). The business had revenue of $247.71 million for the quarter, compared to the consensus estimate of $246.88 million. PennyMac Financial Services had a net margin of 11.79% and a return on equity of 6.57%. On average, equities analysts predict that PennyMac Financial Services will post 2.99 earnings per share for the current year.

In other PennyMac Financial Services news, insider Stanford L. Kurland sold 6,000 shares of the firm’s stock in a transaction dated Tuesday, May 14th. The stock was sold at an average price of $22.63, for a total transaction of $135,780.00. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Anne Mccallion sold 10,000 shares of the firm’s stock in a transaction dated Thursday, May 23rd. The shares were sold at an average price of $22.74, for a total value of $227,400.00. The disclosure for this sale can be found here. Insiders have sold 172,000 shares of company stock worth $3,809,070 in the last 90 days. Company insiders own 22.17% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Long Pond Capital LP increased its holdings in shares of PennyMac Financial Services by 202.8% in the first quarter. Long Pond Capital LP now owns 757,000 shares of the real estate investment trust’s stock worth $16,836,000 after buying an additional 507,000 shares during the period. Geode Capital Management LLC increased its holdings in shares of PennyMac Financial Services by 128.0% in the fourth quarter. Geode Capital Management LLC now owns 485,064 shares of the real estate investment trust’s stock worth $10,312,000 after buying an additional 272,320 shares during the period. Northern Trust Corp increased its holdings in shares of PennyMac Financial Services by 43.0% in the fourth quarter. Northern Trust Corp now owns 337,412 shares of the real estate investment trust’s stock worth $7,173,000 after buying an additional 101,429 shares during the period. Boston Partners increased its holdings in shares of PennyMac Financial Services by 3.5% in the first quarter. Boston Partners now owns 309,334 shares of the real estate investment trust’s stock worth $6,880,000 after buying an additional 10,461 shares during the period. Finally, Bank of New York Mellon Corp increased its holdings in shares of PennyMac Financial Services by 25.1% in the fourth quarter. Bank of New York Mellon Corp now owns 157,163 shares of the real estate investment trust’s stock worth $3,341,000 after buying an additional 31,508 shares during the period. Institutional investors and hedge funds own 30.72% 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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