PennyMac Financial Services (NYSE:PFSI) Shares Gap Down on Analyst Downgrade

Shares of PennyMac Financial Services, Inc. (NYSE:PFSI) gapped down prior to trading on Thursday after Keefe, Bruyette & Woods lowered their price target on the stock from $105.00 to $100.00. The stock had previously closed at $92.07, but opened at $85.32. Keefe, Bruyette & Woods currently has an outperform rating on the stock. PennyMac Financial Services shares last traded at $85.85, with a volume of 297,138 shares trading hands.

Other equities research analysts have also recently issued reports about the company. Deutsche Bank Aktiengesellschaft cut their target price on PennyMac Financial Services from $115.00 to $112.00 and set a “buy” rating on the stock in a research note on Thursday. Wedbush reiterated an “outperform” rating and issued a $110.00 target price on shares of PennyMac Financial Services in a research note on Thursday. StockNews.com cut shares of PennyMac Financial Services from a “hold” rating to a “sell” rating in a research note on Thursday. Finally, Barclays lifted their price objective on shares of PennyMac Financial Services from $103.00 to $112.00 and gave the company an “overweight” rating in a research note on Tuesday, April 9th. One research analyst has rated the stock with a sell rating, one has issued a hold rating and six have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $97.75.

Insiders Place Their Bets

In other PennyMac Financial Services news, CFO Daniel Stanley Perotti sold 11,400 shares of the business’s stock in a transaction dated Thursday, February 15th. The shares were sold at an average price of $88.50, for a total value of $1,008,900.00. Following the sale, the chief financial officer now directly owns 257,897 shares in the company, valued at $22,823,884.50. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. In other PennyMac Financial Services news, CFO Daniel Stanley Perotti sold 11,400 shares of PennyMac Financial Services stock in a transaction dated Thursday, February 15th. The stock was sold at an average price of $88.50, for a total transaction of $1,008,900.00. Following the transaction, the chief financial officer now owns 257,897 shares of the company’s stock, valued at approximately $22,823,884.50. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO David Spector sold 26,451 shares of PennyMac Financial Services stock in a transaction dated 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 transaction, the chief executive officer now directly owns 647,938 shares in the company, valued at approximately $55,755,064.90. The disclosure for this sale can be found here. Over the last three months, insiders have sold 87,802 shares of company stock worth $7,666,108. 17.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On PennyMac Financial Services

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Dimensional Fund Advisors LP increased its position in shares of PennyMac Financial Services by 2.7% during the fourth quarter. Dimensional Fund Advisors LP now owns 2,691,512 shares of the real estate investment trust’s stock valued at $237,851,000 after purchasing an additional 70,178 shares during the period. Vanguard Group Inc. lifted its stake in shares of PennyMac Financial Services by 0.8% during the fourth quarter. Vanguard Group Inc. now owns 2,610,041 shares of the real estate investment trust’s stock valued at $230,649,000 after acquiring an additional 19,748 shares during the period. Invesco Ltd. lifted its stake in shares of PennyMac Financial Services by 47.6% during the third quarter. Invesco Ltd. now owns 490,297 shares of the real estate investment trust’s stock valued at $32,654,000 after acquiring an additional 158,181 shares during the period. Charles Schwab Investment Management Inc. lifted its stake in PennyMac Financial Services by 1.0% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 396,745 shares of the real estate investment trust’s stock valued at $35,060,000 after buying an additional 3,947 shares during the period. Finally, Norges Bank acquired a new position in PennyMac Financial Services in the fourth quarter valued at about $31,258,000. 57.87% of the stock is currently owned by institutional investors and hedge funds.

PennyMac Financial Services Stock Up 0.9 %

The firm has a 50 day simple moving average of $87.83 and a two-hundred day simple moving average of $83.05. The company has a debt-to-equity ratio of 1.90, a current ratio of 0.37 and a quick ratio of 0.37. The stock has a market cap of $4.39 billion, a price-to-earnings ratio of 30.21, a price-to-earnings-growth ratio of 0.61 and a beta of 1.67.

PennyMac Financial Services (NYSE:PFSI) last announced its quarterly earnings results on Wednesday, April 24th. The real estate investment trust reported $2.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.34 by $0.14. The company had revenue of $305.66 million during the quarter, compared to the consensus estimate of $422.87 million. PennyMac Financial Services had a return on equity of 10.51% and a net margin of 10.94%. As a group, sell-side analysts expect that PennyMac Financial Services, Inc. will post 10.41 EPS for the current year.

PennyMac Financial Services Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 24th. Stockholders of record on Tuesday, May 14th will be given a $0.20 dividend. The ex-dividend date is Monday, May 13th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.92%. PennyMac Financial Services’s payout ratio is 27.78%.

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.