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

Zacks Investment Research upgraded shares of PennyMac Financial Services (NYSE:PFSI) from a hold rating to a strong-buy rating in a report published on Wednesday morning, Zacks.com reports. The firm currently has $72.00 target price 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. “

Several other equities research analysts have also recently weighed in on PFSI. Wedbush reiterated an outperform rating on shares of PennyMac Financial Services in a report on Monday, February 1st. Credit Suisse Group increased their target price on shares of PennyMac Financial Services from $80.00 to $85.00 and gave the stock an outperform rating in a report on Monday, February 8th. Jefferies Financial Group initiated coverage on shares of PennyMac Financial Services in a report on Monday, December 14th. They issued a buy rating and a $95.00 price target for the company. Piper Sandler upped their price target on shares of PennyMac Financial Services from $90.00 to $109.00 and gave the stock an overweight rating in a research report on Friday, February 5th. Finally, Keefe, Bruyette & Woods lowered shares of PennyMac Financial Services from an outperform rating to a market perform rating and cut their price objective for the company from $77.00 to $73.00 in a report on Tuesday. Three research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company’s stock. The stock has an average rating of Buy and an average price target of $82.38.

PennyMac Financial Services stock opened at $60.04 on Wednesday. The company has a debt-to-equity ratio of 2.76, a current ratio of 0.34 and a quick ratio of 0.34. The stock has a market cap of $4.16 billion, a price-to-earnings ratio of 3.53 and a beta of 1.22. The firm has a 50-day moving average of $63.45 and a two-hundred day moving average of $60.62. PennyMac Financial Services has a 1 year low of $21.13 and a 1 year high of $70.99.

PennyMac Financial Services (NYSE:PFSI) last posted its quarterly earnings results on Thursday, February 4th. The real estate investment trust reported $5.97 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $5.92 by $0.05. PennyMac Financial Services had a net margin of 42.70% and a return on equity of 54.29%. The firm had revenue of $1.04 billion during the quarter, compared to the consensus estimate of $1.06 billion. Research analysts expect that PennyMac Financial Services will post 20.98 earnings per share for the current year.

The company also recently disclosed a quarterly dividend, which was paid on Thursday, February 25th. Stockholders of record on Friday, February 12th were given a $0.20 dividend. The ex-dividend date of this dividend was Thursday, February 11th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.33%. This is an increase from PennyMac Financial Services’s previous quarterly dividend of $0.12. PennyMac Financial Services’s payout ratio is presently 16.36%.

In other PennyMac Financial Services news, major shareholder Kurland Family Investments, Ll sold 41,750 shares of the stock in a transaction dated Wednesday, February 10th. The stock was sold at an average price of $62.76, for a total value of $2,620,230.00. Following the completion of the sale, the insider now directly owns 7,547,970 shares in the company, valued at $473,710,597.20. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CEO David Spector sold 15,000 shares of the firm’s stock in a transaction dated Monday, January 11th. The stock was sold at an average price of $57.25, for a total value of $858,750.00. The disclosure for this sale can be found here. In the last quarter, insiders have purchased 1,166,474 shares of company stock valued at $72,939,758 and have sold 253,929 shares valued at $15,883,193. Insiders own 21.48% of the company’s stock.

Large investors have recently added to or reduced their stakes in the business. IFP Advisors Inc raised its holdings in shares of PennyMac Financial Services by 68.3% in the fourth quarter. IFP Advisors Inc now owns 1,003 shares of the real estate investment trust’s stock worth $66,000 after buying an additional 407 shares during the last quarter. CI Investments Inc. purchased a new position in PennyMac Financial Services in the 4th quarter worth $81,000. Perigon Wealth Management LLC acquired a new stake in PennyMac Financial Services during the 4th quarter worth about $86,000. US Bancorp DE grew its stake in PennyMac Financial Services by 17.0% during the 4th quarter. US Bancorp DE now owns 1,341 shares of the real estate investment trust’s stock valued at $88,000 after purchasing an additional 195 shares during the last quarter. Finally, Princeton Global Asset Management LLC grew its stake in PennyMac Financial Services by 100.0% during the 4th quarter. Princeton Global Asset Management LLC now owns 2,000 shares of the real estate investment trust’s stock valued at $131,000 after purchasing an additional 1,000 shares during the last quarter. 51.72% of the stock is currently owned by institutional investors.

PennyMac Financial Services Company Profile

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: Production, Servicing, and Investment Management. The Production segment is involved in the origination, acquisition, and sale of loans.

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