PennyMac Financial Services (NYSE:PFSI) Shares Down 3.6% – Should You Sell?

PennyMac Financial Services, Inc. (NYSE:PFSI)’s share price traded down 3.6% during mid-day trading on Thursday . The company traded as low as $98.25 and last traded at $98.44. 118,976 shares changed hands during mid-day trading, a decline of 54% from the average session volume of 257,161 shares. The stock had previously closed at $102.14.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the stock. Wedbush reiterated an “outperform” rating and set a $130.00 price target on shares of PennyMac Financial Services in a report on Wednesday, October 23rd. Barclays lifted their target price on PennyMac Financial Services from $112.00 to $125.00 and gave the stock an “overweight” rating in a report on Tuesday, October 8th. Wells Fargo & Company upped their price target on PennyMac Financial Services from $110.00 to $125.00 and gave the company an “overweight” rating in a report on Thursday, October 24th. Piper Sandler lifted their price objective on PennyMac Financial Services from $125.00 to $132.00 and gave the stock an “overweight” rating in a report on Wednesday, October 23rd. Finally, Keefe, Bruyette & Woods lowered their target price on shares of PennyMac Financial Services from $112.00 to $111.00 and set a “market perform” rating on the stock in a research note on Tuesday, December 10th. One investment analyst has rated the stock with a sell rating, one has issued a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $122.50.

PennyMac Financial Services Price Performance

The company has a current ratio of 0.38, a quick ratio of 0.38 and a debt-to-equity ratio of 2.75. The company has a market capitalization of $5.16 billion, a PE ratio of 31.98 and a beta of 1.78. The stock’s 50-day moving average is $103.46 and its two-hundred day moving average is $102.75.

PennyMac Financial Services (NYSE:PFSI) last issued its quarterly earnings results on Tuesday, October 22nd. The real estate investment trust reported $1.30 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.92 by ($1.62). PennyMac Financial Services had a return on equity of 15.13% and a net margin of 11.45%. The business had revenue of $411.83 million for the quarter, compared to the consensus estimate of $513.12 million. During the same period in the prior year, the business posted $1.77 earnings per share. PennyMac Financial Services’s revenue was up 2.9% on a year-over-year basis. On average, equities analysts predict that PennyMac Financial Services, Inc. will post 11.88 EPS for the current year.

PennyMac Financial Services Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, November 27th. Investors of record on Monday, November 18th were issued a $0.30 dividend. The ex-dividend date of this dividend was Monday, November 18th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.19%. PennyMac Financial Services’s payout ratio is 38.10%.

Insiders Place Their Bets

In other PennyMac Financial Services news, CFO Daniel Stanley Perotti sold 10,500 shares of PennyMac Financial Services stock in a transaction on Friday, November 15th. The shares were sold at an average price of $100.02, for a total value of $1,050,210.00. Following the transaction, the chief financial officer now directly owns 225,497 shares of the company’s stock, valued at approximately $22,554,209.94. The trade was a 4.45 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Doug Jones sold 23,229 shares of the business’s stock in a transaction on Tuesday, December 24th. The stock was sold at an average price of $101.51, for a total value of $2,357,975.79. Following the transaction, the director now owns 23,892 shares in the company, valued at approximately $2,425,276.92. This trade represents a 49.30 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 152,844 shares of company stock worth $15,658,591 in the last ninety days. 16.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On PennyMac Financial Services

A number of large investors have recently modified their holdings of PFSI. JPMorgan Chase & Co. lifted its stake in shares of PennyMac Financial Services by 2.3% during the third quarter. JPMorgan Chase & Co. now owns 954,713 shares of the real estate investment trust’s stock worth $108,809,000 after buying an additional 21,751 shares during the period. Tidal Investments LLC grew its stake in PennyMac Financial Services by 115.3% during the 3rd quarter. Tidal Investments LLC now owns 15,086 shares of the real estate investment trust’s stock valued at $1,719,000 after purchasing an additional 8,078 shares during the last quarter. Hohimer Wealth Management LLC acquired a new position in shares of PennyMac Financial Services in the third quarter valued at about $236,000. Geode Capital Management LLC increased its holdings in shares of PennyMac Financial Services by 3.1% in the third quarter. Geode Capital Management LLC now owns 647,764 shares of the real estate investment trust’s stock valued at $73,841,000 after purchasing an additional 19,662 shares during the period. Finally, Barclays PLC raised its stake in shares of PennyMac Financial Services by 505.4% in the third quarter. Barclays PLC now owns 60,179 shares of the real estate investment trust’s stock worth $6,859,000 after purchasing an additional 50,238 shares during the last quarter. Hedge funds and other institutional investors own 57.87% 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. The company operates through three segments: Production, Servicing, and Investment Management. The Production segment is involved in the origination, acquisition, and sale of loans.