PennyMac Financial Services (NYSE:PFSI) Shares Gap Down Following Weak Earnings

PennyMac Financial Services, Inc. (NYSE:PFSI)’s share price gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $114.82, but opened at $106.67. PennyMac Financial Services shares last traded at $108.43, with a volume of 17,611 shares traded.

The real estate investment trust reported $2.88 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.09 by ($0.21). PennyMac Financial Services had a return on equity of 15.13% and a net margin of 11.45%.

PennyMac Financial Services Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Sunday, February 23rd. Stockholders of record on Thursday, February 13th will be given a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 1.14%. The ex-dividend date is Thursday, February 13th. PennyMac Financial Services’s payout ratio is presently 38.10%.

Analyst Ratings Changes

Several analysts have recently commented on PFSI shares. Barclays lifted their price target on shares of PennyMac Financial Services from $112.00 to $125.00 and gave the company an “overweight” rating in a research report on Tuesday, October 8th. Piper Sandler reduced their price target on shares of PennyMac Financial Services from $132.00 to $130.00 and set an “overweight” rating on the stock in a research report on Friday. Wedbush reissued an “outperform” rating and issued a $130.00 target price on shares of PennyMac Financial Services in a research report on Wednesday, October 23rd. 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 report on Thursday, October 24th. Finally, Keefe, Bruyette & Woods cut their target price on PennyMac Financial Services from $112.00 to $111.00 and set a “market perform” rating on the stock in a research report on Tuesday, December 10th. One analyst has rated the stock with a sell rating, one has assigned a hold rating and five have issued a buy rating to the company. According to data from MarketBeat.com, PennyMac Financial Services currently has an average rating of “Moderate Buy” and an average target price of $122.17.

Insider Buying and Selling

In related news, Director Doug Jones sold 7,882 shares of the business’s stock in a transaction on Thursday, December 26th. The shares were sold at an average price of $103.16, for a total value of $813,107.12. Following the completion of the sale, the director now directly owns 450,000 shares of the company’s stock, valued at $46,422,000. The trade was a 1.72 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO David Spector sold 5,000 shares of the business’s stock in a transaction on Wednesday, January 8th. The shares were sold at an average price of $99.38, for a total transaction of $496,900.00. Following the completion of the sale, the chief executive officer now directly owns 165,604 shares of the company’s stock, valued at approximately $16,457,725.52. This trade represents a 2.93 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 147,844 shares of company stock worth $15,079,791. Corporate insiders own 16.60% of the company’s stock.

Institutional Investors Weigh In On PennyMac Financial Services

Institutional investors and hedge funds have recently made changes to their positions in the business. State Street Corp raised its holdings in shares of PennyMac Financial Services by 6.0% in the third quarter. State Street Corp now owns 911,741 shares of the real estate investment trust’s stock valued at $103,911,000 after buying an additional 51,777 shares during the last quarter. JPMorgan Chase & Co. raised its holdings in shares of PennyMac Financial Services by 2.3% in the third quarter. JPMorgan Chase & Co. now owns 954,713 shares of the real estate investment trust’s stock valued at $108,809,000 after buying an additional 21,751 shares during the last quarter. XTX Topco Ltd purchased a new stake in shares of PennyMac Financial Services in the third quarter valued at about $614,000. HighTower Advisors LLC purchased a new position in PennyMac Financial Services during the third quarter worth about $702,000. Finally, FORA Capital LLC purchased a new position in PennyMac Financial Services during the third quarter worth about $616,000. 57.87% of the stock is owned by hedge funds and other institutional investors.

PennyMac Financial Services Stock Down 8.6 %

The stock has a market capitalization of $5.38 billion, a PE ratio of 33.31, a PEG ratio of 0.21 and a beta of 1.78. The firm’s fifty day moving average is $104.65 and its 200-day moving average is $104.42. The company has a quick ratio of 0.38, a current ratio of 0.38 and a debt-to-equity ratio of 2.75.

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.