Wedbush Research Analysts Decrease Earnings Estimates for PennyMac Financial Services, Inc. (NYSE:PFSI)

PennyMac Financial Services, Inc. (NYSE:PFSI) – Equities research analysts at Wedbush cut their Q2 2024 earnings estimates for PennyMac Financial Services in a research report issued to clients and investors on Monday, July 22nd. Wedbush analyst J. Mccanless now anticipates that the real estate investment trust will earn $2.52 per share for the quarter, down from their previous forecast of $2.74. Wedbush has a “Outperform” rating and a $120.00 price target on the stock. The consensus estimate for PennyMac Financial Services’ current full-year earnings is $10.51 per share. Wedbush also issued estimates for PennyMac Financial Services’ Q4 2024 earnings at $2.79 EPS, FY2024 earnings at $10.65 EPS and FY2025 earnings at $12.00 EPS.

PennyMac Financial Services (NYSE:PFSI) last released its earnings results on Tuesday, July 23rd. The real estate investment trust reported $1.85 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.65 by ($0.80). PennyMac Financial Services had a return on equity of 12.78% and a net margin of 13.13%. The firm had revenue of $406.13 million for the quarter, compared to analyst estimates of $469.64 million. During the same period in the previous year, the firm earned $1.11 earnings per share. PennyMac Financial Services’s revenue was up 20.7% on a year-over-year basis.

Several other research firms also recently issued reports on PFSI. Keefe, Bruyette & Woods downgraded PennyMac Financial Services from an “outperform” rating to a “market perform” rating and set a $102.00 price objective on the stock. in a report on Monday, July 22nd. Barclays raised their price objective on shares of PennyMac Financial Services from $103.00 to $112.00 and gave the stock an “overweight” rating in a research note on Tuesday, April 9th. Deutsche Bank Aktiengesellschaft cut their target price on shares of PennyMac Financial Services from $115.00 to $112.00 and set a “buy” rating on the stock in a research note on Thursday, April 25th. Piper Sandler increased their target price on PennyMac Financial Services from $110.00 to $112.00 and gave the company an “overweight” rating in a report on Wednesday. Finally, StockNews.com downgraded PennyMac Financial Services from a “hold” rating to a “sell” rating in a report on Wednesday, July 3rd. One investment analyst has rated the stock with a sell rating, two have given a hold rating and four have assigned a buy rating to the stock. According to MarketBeat, PennyMac Financial Services currently has a consensus rating of “Hold” and a consensus price target of $107.17.

PennyMac Financial Services Trading Up 0.6 %

Shares of NYSE:PFSI opened at $99.87 on Thursday. The stock has a market capitalization of $5.09 billion, a price-to-earnings ratio of 34.68, a PEG ratio of 0.63 and a beta of 1.72. PennyMac Financial Services has a 1-year low of $62.15 and a 1-year high of $105.94. The company has a 50 day moving average price of $93.85 and a 200 day moving average price of $90.25. The company has a debt-to-equity ratio of 2.33, a quick ratio of 0.39 and a current ratio of 0.39.

PennyMac Financial Services Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 23rd. Shareholders of record on Tuesday, August 13th will be given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a yield of 1.20%. This is a boost from PennyMac Financial Services’s previous quarterly dividend of $0.20. The ex-dividend date of this dividend is Tuesday, August 13th. PennyMac Financial Services’s dividend payout ratio is 27.78%.

Insider Buying and Selling at PennyMac Financial Services

In related news, CEO David Spector sold 10,000 shares of the firm’s stock in a transaction on Wednesday, May 15th. The stock was sold at an average price of $93.16, for a total transaction of $931,600.00. Following the completion of the sale, the chief executive officer now directly owns 240,604 shares of the company’s stock, valued at approximately $22,414,668.64. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. In other PennyMac Financial Services news, CEO David Spector sold 10,000 shares of the business’s stock in a transaction dated Wednesday, May 15th. The shares were sold at an average price of $93.16, for a total value of $931,600.00. Following the completion of the transaction, the chief executive officer now directly owns 240,604 shares of the company’s stock, valued at $22,414,668.64. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Joseph F. Mazzella sold 16,465 shares of the stock in a transaction that occurred on Friday, May 3rd. The shares were sold at an average price of $90.73, for a total transaction of $1,493,869.45. Following the sale, the director now directly owns 116,546 shares in the company, valued at $10,574,218.58. The disclosure for this sale can be found here. Over the last three months, insiders sold 87,865 shares of company stock valued at $8,045,169. 16.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of PFSI. Public Employees Retirement System of Ohio lifted its stake in PennyMac Financial Services by 1,730.8% in the third quarter. Public Employees Retirement System of Ohio now owns 13,676 shares of the real estate investment trust’s stock valued at $911,000 after buying an additional 12,929 shares during the period. Saxon Interests Inc. bought a new position in PennyMac Financial Services during the 4th quarter worth approximately $208,000. Denali Advisors LLC grew its holdings in PennyMac Financial Services by 18.1% during the fourth quarter. Denali Advisors LLC now owns 14,900 shares of the real estate investment trust’s stock valued at $1,317,000 after purchasing an additional 2,283 shares during the period. MorganRosel Wealth Management LLC increased its stake in PennyMac Financial Services by 12.0% in the fourth quarter. MorganRosel Wealth Management LLC now owns 10,575 shares of the real estate investment trust’s stock valued at $935,000 after purchasing an additional 1,131 shares in the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank raised its holdings in PennyMac Financial Services by 14.1% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 9,214 shares of the real estate investment trust’s stock worth $814,000 after purchasing an additional 1,138 shares during the period. 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.