Wedbush Has Strong Forecast for PFSI FY2024 Earnings

PennyMac Financial Services, Inc. (NYSE:PFSI) – Investment analysts at Wedbush boosted their FY2024 earnings per share (EPS) estimates for shares of PennyMac Financial Services in a research report issued on Wednesday, October 23rd. Wedbush analyst J. Mccanless now anticipates that the real estate investment trust will post earnings of $12.00 per share for the year, up from their prior forecast of $11.25. Wedbush has a “Outperform” rating and a $130.00 price objective on the stock. The consensus estimate for PennyMac Financial Services’ current full-year earnings is $11.22 per share. Wedbush also issued estimates for PennyMac Financial Services’ Q4 2024 earnings at $3.36 EPS, Q1 2025 earnings at $3.46 EPS, Q2 2025 earnings at $3.40 EPS and Q4 2025 earnings at $3.88 EPS.

PennyMac Financial Services (NYSE:PFSI) last announced its quarterly earnings results on Tuesday, October 22nd. The real estate investment trust reported $1.30 EPS for the quarter, missing analysts’ consensus estimates of $2.92 by ($1.62). The company had revenue of $411.83 million during the quarter, compared to analysts’ expectations of $513.12 million. PennyMac Financial Services had a return on equity of 15.28% 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 last year, the firm earned $1.77 earnings per share.

Several other equities analysts have also recently issued reports on PFSI. Wells Fargo & Company boosted their target price on PennyMac Financial Services from $110.00 to $125.00 and gave the company an “overweight” rating in a research note on Thursday. StockNews.com cut PennyMac Financial Services from a “hold” rating to a “sell” rating in a research note on Wednesday, July 3rd. Keefe, Bruyette & Woods lowered PennyMac Financial Services from an “outperform” rating to a “market perform” rating and set a $102.00 price target on the stock. in a research report on Monday, July 22nd. Barclays lifted their price target on PennyMac Financial Services from $112.00 to $125.00 and gave the company an “overweight” rating in a research report on Tuesday, October 8th. Finally, Piper Sandler lifted their price target on PennyMac Financial Services from $125.00 to $132.00 and gave the company an “overweight” rating in a research report on Wednesday. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and five have given a buy rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $115.86.

PennyMac Financial Services Price Performance

Shares of PennyMac Financial Services stock opened at $100.88 on Friday. The company has a debt-to-equity ratio of 2.75, a current ratio of 0.37 and a quick ratio of 0.37. PennyMac Financial Services has a one year low of $62.75 and a one year high of $119.13. The stock has a market capitalization of $5.16 billion, a P/E ratio of 32.03, a price-to-earnings-growth ratio of 0.63 and a beta of 1.77. The business’s 50 day simple moving average is $107.79 and its two-hundred day simple moving average is $98.20.

PennyMac Financial Services Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, November 27th. Stockholders of record on Monday, November 18th will be issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.19%. The ex-dividend date of this dividend is Monday, November 18th. PennyMac Financial Services’s payout ratio is currently 38.10%.

Insider Activity

In other news, Director Joseph F. Mazzella sold 11,396 shares of the company’s stock in a transaction on Wednesday, August 14th. The stock was sold at an average price of $97.92, for a total transaction of $1,115,896.32. Following the transaction, the director now directly owns 105,446 shares of the company’s stock, valued at $10,325,272.32. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. In related news, insider Steven Richard Bailey sold 14,130 shares of the company’s stock in a transaction on Monday, September 16th. The stock was sold at an average price of $116.88, for a total transaction of $1,651,514.40. Following the completion of the sale, the insider now owns 14,670 shares in the company, valued at approximately $1,714,629.60. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Joseph F. Mazzella sold 11,396 shares of the company’s stock in a transaction on Wednesday, August 14th. The shares were sold at an average price of $97.92, for a total value of $1,115,896.32. Following the sale, the director now owns 105,446 shares of the company’s stock, valued at approximately $10,325,272.32. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 89,855 shares of company stock valued at $9,647,599 over the last ninety days. 16.60% of the stock is currently owned by corporate insiders.

Institutional Trading of PennyMac Financial Services

Hedge funds have recently bought and sold shares of the company. Edgestream Partners L.P. increased its position in PennyMac Financial Services by 256.9% in the second quarter. Edgestream Partners L.P. now owns 84,861 shares of the real estate investment trust’s stock worth $8,028,000 after buying an additional 61,087 shares in the last quarter. American Century Companies Inc. increased its position in PennyMac Financial Services by 13.2% in the second quarter. American Century Companies Inc. now owns 347,979 shares of the real estate investment trust’s stock worth $32,919,000 after buying an additional 40,676 shares in the last quarter. EMG Holdings L.P. increased its position in PennyMac Financial Services by 107.4% in the second quarter. EMG Holdings L.P. now owns 64,451 shares of the real estate investment trust’s stock worth $6,097,000 after buying an additional 33,370 shares in the last quarter. Quantbot Technologies LP purchased a new stake in PennyMac Financial Services in the first quarter worth about $2,570,000. Finally, Denali Advisors LLC increased its position in PennyMac Financial Services by 179.2% in the first quarter. Denali Advisors LLC now owns 41,600 shares of the real estate investment trust’s stock worth $3,789,000 after buying an additional 26,700 shares in the last quarter. Hedge funds and other institutional investors own 57.87% of the company’s stock.

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.