PennyMac Financial Services (NYSE:PFSI) Releases Quarterly Earnings Results, Beats Estimates By $0.14 EPS

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

PennyMac Financial Services Price Performance

Shares of PFSI opened at $85.37 on Friday. The company has a 50 day moving average price of $87.95 and a 200-day moving average price of $82.89. PennyMac Financial Services has a fifty-two week low of $56.16 and a fifty-two week high of $94.78. The stock has a market capitalization of $4.31 billion, a PE ratio of 29.93, a PEG ratio of 0.61 and a beta of 1.67. The company has a debt-to-equity ratio of 1.90, a quick ratio of 0.37 and a current ratio of 0.37.

PennyMac Financial Services Announces Dividend

The firm also recently declared 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 of this dividend is Monday, May 13th. This represents a $0.80 annualized dividend and a dividend yield of 0.94%. PennyMac Financial Services’s payout ratio is presently 27.78%.

Insider Transactions at PennyMac Financial Services

In other news, CFO Daniel Stanley Perotti sold 11,400 shares of the company’s stock in a transaction that occurred on 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 completion of the sale, the chief financial officer now owns 257,897 shares of the company’s stock, valued at approximately $22,823,884.50. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. In related news, insider James Follette sold 2,617 shares of the business’s stock in a transaction that occurred on Tuesday, February 27th. The shares were sold at an average price of $86.24, for a total transaction of $225,690.08. Following the completion of the transaction, the insider now owns 7,257 shares in the company, valued at approximately $625,843.68. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Daniel Stanley Perotti sold 11,400 shares of the business’s stock in a transaction that occurred on 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 disclosure for this sale can be found here. In the last quarter, insiders sold 87,802 shares of company stock valued at $7,666,108. Company insiders own 17.40% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Dimensional Fund Advisors LP increased its stake in PennyMac Financial Services by 2.7% during the 4th 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 in the last quarter. Vanguard Group Inc. boosted its holdings in shares of PennyMac Financial Services by 0.8% in the 4th 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 last quarter. Invesco Ltd. boosted its holdings in shares of PennyMac Financial Services by 47.6% in the 3rd 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 last quarter. Charles Schwab Investment Management Inc. boosted its holdings in shares of PennyMac Financial Services by 1.0% in the 4th 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 acquiring an additional 3,947 shares during the last quarter. Finally, Norges Bank purchased a new stake in shares of PennyMac Financial Services in the 4th quarter valued at $31,258,000. Institutional investors and hedge funds own 57.87% of the company’s stock.

Analysts Set New Price Targets

Several brokerages have recently commented on PFSI. Wedbush restated an “outperform” rating and set a $110.00 price objective on shares of PennyMac Financial Services in a research report on Thursday. Keefe, Bruyette & Woods upgraded shares of PennyMac Financial Services from a “market perform” rating to an “outperform” rating and raised their price objective for the company from $100.00 to $105.00 in a research report on Tuesday, April 9th. Deutsche Bank Aktiengesellschaft decreased their price objective on shares of PennyMac Financial Services from $115.00 to $112.00 and set a “buy” rating on the stock in a research report on Thursday. Barclays lifted their price target 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. Finally, StockNews.com downgraded shares of PennyMac Financial Services from a “hold” rating to a “sell” rating in a report on Thursday. One analyst has rated the stock with a sell rating, one has assigned a hold rating and six have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, PennyMac Financial Services presently has a consensus rating of “Moderate Buy” and an average target price of $98.38.

PennyMac Financial Services Company Profile

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.