PennyMac Financial Services (NYSE:PFSI) Issues Quarterly Earnings Results

PennyMac Financial Services (NYSE:PFSI) posted its quarterly earnings results on Wednesday. The real estate investment trust reported $2.48 EPS for the quarter, topping the consensus estimate of $2.34 by $0.14, reports. PennyMac Financial Services had a net margin of 10.94% and a return on equity of 10.51%. The company had revenue of $305.66 million during the quarter, compared to analysts’ expectations of $422.87 million.

PennyMac Financial Services Trading Down 1.0 %

Shares of PennyMac Financial Services stock opened at $85.37 on Friday. The company has a fifty day simple moving average of $87.95 and a 200-day simple moving average of $82.89. PennyMac Financial Services has a 12-month low of $56.16 and a 12-month high of $94.78. The stock has a market cap of $4.31 billion, a price-to-earnings ratio of 29.93, a PEG ratio of 0.61 and a beta of 1.67. The company has a current ratio of 0.37, a quick ratio of 0.37 and a debt-to-equity ratio of 1.90.

PennyMac Financial Services Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, May 24th. Stockholders of record on Tuesday, May 14th will be issued a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 0.94%. The ex-dividend date is Monday, May 13th. PennyMac Financial Services’s payout ratio is 27.78%.

Insider Activity at PennyMac Financial Services

In related news, insider James Follette sold 2,617 shares of the company’s stock in a transaction on Tuesday, February 27th. The shares were sold at an average price of $86.24, for a total value of $225,690.08. Following the completion of the sale, the insider now owns 7,257 shares in the company, valued at approximately $625,843.68. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. In related news, CEO David Spector sold 26,451 shares of the company’s stock in a transaction on Monday, March 11th. The shares were sold at an average price of $86.05, for a total value of $2,276,108.55. Following the completion of the sale, the chief executive officer now owns 647,938 shares in the company, valued at approximately $55,755,064.90. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, insider James Follette sold 2,617 shares of the company’s stock in a transaction on Tuesday, February 27th. The stock was sold at an average price of $86.24, for a total transaction of $225,690.08. Following the transaction, the insider now owns 7,257 shares of the company’s stock, valued at approximately $625,843.68. The disclosure for this sale can be found here. Insiders sold a total of 87,802 shares of company stock worth $7,666,108 in the last 90 days. 17.40% of the stock is owned by insiders.

Hedge Funds Weigh In On PennyMac Financial Services

A number of large investors have recently bought and sold shares of the company. Hexagon Capital Partners LLC raised its position in PennyMac Financial Services by 128.9% during the 4th quarter. Hexagon Capital Partners LLC now owns 364 shares of the real estate investment trust’s stock worth $32,000 after buying an additional 205 shares during the last quarter. Caxton Associates LP raised its position in PennyMac Financial Services by 3.6% during the 3rd quarter. Caxton Associates LP now owns 5,874 shares of the real estate investment trust’s stock worth $391,000 after buying an additional 206 shares during the last quarter. MorganRosel Wealth Management LLC raised its position in PennyMac Financial Services by 2.2% during the 1st quarter. MorganRosel Wealth Management LLC now owns 10,811 shares of the real estate investment trust’s stock worth $985,000 after buying an additional 236 shares during the last quarter. USA Financial Formulas purchased a new position in PennyMac Financial Services during the 4th quarter worth $25,000. Finally, Teacher Retirement System of Texas grew its stake in shares of PennyMac Financial Services by 4.1% during the 3rd quarter. Teacher Retirement System of Texas now owns 9,774 shares of the real estate investment trust’s stock worth $651,000 after purchasing an additional 385 shares during the period. Hedge funds and other institutional investors own 57.87% of the company’s stock.

Analyst Upgrades and Downgrades

PFSI has been the subject of several analyst reports. Deutsche Bank Aktiengesellschaft lowered their price target on shares of PennyMac Financial Services from $115.00 to $112.00 and set a “buy” rating for the company in a report on Thursday. Wedbush reiterated an “outperform” rating and set a $110.00 price target on shares of PennyMac Financial Services in a report on Thursday. StockNews.com cut shares of PennyMac Financial Services from a “hold” rating to a “sell” rating in a report on Thursday. Keefe, Bruyette & Woods upgraded shares of PennyMac Financial Services from a “market perform” rating to an “outperform” rating and boosted their price target for the stock from $100.00 to $105.00 in a report on Tuesday, April 9th. Finally, Barclays upped their target price on shares of PennyMac Financial Services from $103.00 to $112.00 and gave the company an “overweight” rating in a report on Tuesday, April 9th. One analyst has rated the stock with a sell rating, one has given a hold rating and six have issued a buy rating to the company. Based on data from MarketBeat, PennyMac Financial Services has a consensus rating of “Moderate Buy” and an average target price of $98.38.

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.