PennyMac Financial Services (NYSE:PFSI) Stock Price Down 3.6% – Time to Sell?

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

Analyst Ratings Changes

PFSI has been the subject of a number of research analyst reports. Wells Fargo & Company upped their target price on PennyMac Financial Services from $110.00 to $125.00 and gave the stock an “overweight” rating in a research report on Thursday, October 24th. Wedbush restated an “outperform” rating and issued a $130.00 price objective on shares of PennyMac Financial Services in a report on Wednesday, October 23rd. Piper Sandler raised their target price on PennyMac Financial Services from $125.00 to $132.00 and gave the company an “overweight” rating in a research note on Wednesday, October 23rd. Barclays boosted their price target on shares of PennyMac Financial Services from $112.00 to $125.00 and gave the stock an “overweight” rating in a research report on Tuesday, October 8th. Finally, Keefe, Bruyette & Woods reduced their price objective 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. One equities research analyst has rated the stock with a sell rating, one has given a hold rating and five have issued a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $122.50.

PennyMac Financial Services Stock Performance

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

PennyMac Financial Services (NYSE:PFSI) last announced its earnings results on Tuesday, October 22nd. The real estate investment trust reported $1.30 EPS for the quarter, missing the consensus estimate 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 firm had revenue of $411.83 million during the quarter, compared to analyst estimates of $513.12 million. During the same quarter in the previous year, the business earned $1.77 earnings per share. The business’s quarterly revenue was up 2.9% compared to the same quarter last year. Research analysts anticipate that PennyMac Financial Services, Inc. will post 11.88 earnings per share for the current fiscal year.

PennyMac Financial Services Dividend Announcement

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

Insider Buying and Selling at PennyMac Financial Services

In related news, CEO David Spector sold 10,000 shares of the stock in a transaction on Monday, October 14th. The stock was sold at an average price of $107.57, for a total transaction of $1,075,700.00. Following the completion of the sale, the chief executive officer now directly 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Gregory L. Hendry sold 3,032 shares of PennyMac Financial Services stock in a transaction dated Wednesday, November 20th. The shares were sold at an average price of $102.09, for a total value of $309,536.88. Following the sale, the chief accounting officer now owns 48,040 shares of the company’s stock, valued at approximately $4,904,403.60. This represents a 5.94 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 152,844 shares of company stock valued at $15,658,591 in the last 90 days. 16.60% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On PennyMac Financial Services

Several institutional investors and hedge funds have recently modified their holdings of PFSI. FMR LLC lifted its holdings in PennyMac Financial Services by 231.9% in the 3rd quarter. FMR LLC now owns 1,166,998 shares of the real estate investment trust’s stock worth $133,003,000 after purchasing an additional 815,389 shares during the last quarter. Massachusetts Financial Services Co. MA acquired a new stake in shares of PennyMac Financial Services in the third quarter worth $24,644,000. Philadelphia Financial Management of San Francisco LLC bought a new stake in shares of PennyMac Financial Services during the 3rd quarter worth $21,890,000. Edgestream Partners L.P. grew its stake in PennyMac Financial Services by 256.9% in the 2nd quarter. Edgestream Partners L.P. now owns 84,861 shares of the real estate investment trust’s stock valued at $8,028,000 after buying an additional 61,087 shares during the last quarter. Finally, State Street Corp raised its holdings in PennyMac Financial Services by 6.0% in the 3rd quarter. State Street Corp now owns 911,741 shares of the real estate investment trust’s stock worth $103,911,000 after acquiring an additional 51,777 shares during the period. Institutional investors and hedge funds 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.