PennyMac Financial Services (NYSE:PFSI) Shares Down 3.6% – Here’s What Happened

PennyMac Financial Services, Inc. (NYSE:PFSI) dropped 3.6% on Thursday . The stock traded as low as $98.25 and last traded at $98.44. Approximately 118,976 shares changed hands during trading, a decline of 54% from the average daily volume of 257,161 shares. The stock had previously closed at $102.14.

Analyst Ratings Changes

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

PennyMac Financial Services Trading Down 4.0 %

The company has a debt-to-equity ratio of 2.75, a quick ratio of 0.38 and a current ratio of 0.38. The business has a fifty day simple moving average of $103.48 and a 200 day simple moving average of $102.71. The stock has a market cap of $5.02 billion, a price-to-earnings ratio of 31.11 and a beta of 1.78.

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

PennyMac Financial Services Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, November 27th. Stockholders of record on Monday, November 18th were issued a dividend of $0.30 per share. The ex-dividend date of this dividend was Monday, November 18th. This represents a $1.20 annualized dividend and a dividend yield of 1.22%. PennyMac Financial Services’s payout ratio is currently 38.10%.

Insider Buying and Selling

In related news, CEO David Spector sold 10,000 shares of the firm’s stock in a transaction that occurred on Monday, October 14th. The shares were sold at an average price of $107.57, for a total value of $1,075,700.00. Following the transaction, the chief executive officer now owns 190,604 shares in the company, valued at approximately $20,503,272.28. This trade represents a 4.98 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Daniel Stanley Perotti sold 10,500 shares of the stock in a transaction on Friday, November 15th. The stock was sold at an average price of $100.02, for a total transaction of $1,050,210.00. Following the completion of the sale, the chief financial officer now directly owns 225,497 shares of the company’s stock, valued at $22,554,209.94. The trade was a 4.45 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 152,844 shares of company stock valued at $15,658,591. Insiders own 16.60% of the company’s stock.

Hedge Funds Weigh In On PennyMac Financial Services

Institutional investors and hedge funds have recently made changes to their positions in the business. Bank of New York Mellon Corp increased its holdings in shares of PennyMac Financial Services by 2.8% in the 2nd quarter. Bank of New York Mellon Corp now owns 182,245 shares of the real estate investment trust’s stock valued at $17,240,000 after acquiring an additional 4,930 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank increased its stake in shares of PennyMac Financial Services by 10.8% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 9,554 shares of the real estate investment trust’s stock valued at $904,000 after purchasing an additional 935 shares during the period. Cannon Global Investment Management LLC bought a new stake in shares of PennyMac Financial Services during the second quarter valued at approximately $255,000. Arizona State Retirement System increased its position in PennyMac Financial Services by 2.9% in the 2nd quarter. Arizona State Retirement System now owns 11,999 shares of the real estate investment trust’s stock valued at $1,135,000 after acquiring an additional 336 shares during the period. Finally, Quest Partners LLC raised its stake in PennyMac Financial Services by 493.5% during the 2nd quarter. Quest Partners LLC now owns 4,137 shares of the real estate investment trust’s stock valued at $391,000 after acquiring an additional 3,440 shares in the last quarter. 57.87% of the stock is currently owned by hedge funds and other institutional investors.

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.