PennyMac Financial Services (PFSI) Rating Lowered to Strong Sell at Zacks Investment Research

Zacks Investment Research downgraded shares of PennyMac Financial Services (NYSE:PFSI) from a hold rating to a strong sell rating in a report published on Wednesday.

According to Zacks, “PennyMac Financial Services, Inc. provides financial services primarily in the United States. The Company conducts its business in two segments: mortgage banking and investment management. Mortgage banking segment offers correspondent and retail lending businesses and loan servicing business. Investment management segment offers investment advisory and investment management services. PennyMac Financial Services, Inc. is headquartered in Moorpark, California. “

Several other analysts also recently weighed in on the company. Barclays set a $27.00 target price on PennyMac Financial Services and gave the stock a buy rating in a research report on Sunday, February 11th. Wedbush began coverage on PennyMac Financial Services in a research report on Friday, February 16th. They set an outperform rating and a $30.00 target price for the company. ValuEngine downgraded PennyMac Financial Services from a strong-buy rating to a buy rating in a research report on Wednesday, May 2nd. Wells Fargo downgraded PennyMac Financial Services from an outperform rating to a market perform rating and set a $21.00 target price for the company. in a research report on Thursday, May 3rd. Finally, Keefe, Bruyette & Woods upgraded PennyMac Financial Services from a market perform rating to an outperform rating in a research report on Monday, May 7th. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and five have assigned a buy rating to the stock. The company has an average rating of Buy and an average price target of $25.75.

Shares of PFSI opened at $20.45 on Wednesday. The firm has a market capitalization of $492.68 million, a P/E ratio of 9.30, a P/E/G ratio of 0.99 and a beta of 0.58. PennyMac Financial Services has a 52-week low of $16.00 and a 52-week high of $25.20. The company has a quick ratio of 0.17, a current ratio of 0.17 and a debt-to-equity ratio of 1.30.

PennyMac Financial Services (NYSE:PFSI) last issued its quarterly earnings results on Thursday, May 3rd. The real estate investment trust reported $0.67 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.73 by ($0.06). The company had revenue of $238.20 million during the quarter, compared to the consensus estimate of $234.60 million. PennyMac Financial Services had a return on equity of 3.67% and a net margin of 10.77%. sell-side analysts anticipate that PennyMac Financial Services will post 2.75 earnings per share for the current fiscal year.

In related news, CAO Gregory L. Hendry sold 1,297 shares of PennyMac Financial Services stock in a transaction dated Tuesday, April 3rd. The stock was sold at an average price of $22.36, for a total value of $29,000.92. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Stanford L. Kurland sold 91,038 shares of PennyMac Financial Services stock in a transaction dated Friday, April 6th. The shares were sold at an average price of $23.09, for a total value of $2,102,067.42. Following the completion of the sale, the insider now owns 149,743 shares of the company’s stock, valued at $3,457,565.87. The disclosure for this sale can be found here. Insiders sold 417,883 shares of company stock valued at $9,498,867 over the last 90 days. 45.64% of the stock is currently owned by corporate insiders.

Several hedge funds have recently added to or reduced their stakes in the stock. Millennium Management LLC raised its holdings in shares of PennyMac Financial Services by 38.9% in the first quarter. Millennium Management LLC now owns 35,201 shares of the real estate investment trust’s stock valued at $797,000 after acquiring an additional 9,865 shares in the last quarter. Assetmark Inc. raised its holdings in shares of PennyMac Financial Services by 2,681.9% in the first quarter. Assetmark Inc. now owns 8,012 shares of the real estate investment trust’s stock valued at $181,000 after acquiring an additional 7,724 shares in the last quarter. Element Capital Management LLC bought a new stake in shares of PennyMac Financial Services in the first quarter valued at about $701,000. Barclays PLC raised its holdings in shares of PennyMac Financial Services by 248.7% in the first quarter. Barclays PLC now owns 30,785 shares of the real estate investment trust’s stock valued at $697,000 after acquiring an additional 21,956 shares in the last quarter. Finally, Hillsdale Investment Management Inc. raised its holdings in shares of PennyMac Financial Services by 1,612.9% in the first quarter. Hillsdale Investment Management Inc. now owns 53,100 shares of the real estate investment trust’s stock valued at $1,203,000 after acquiring an additional 50,000 shares in the last quarter. Hedge funds and other institutional investors own 91.82% 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. It operates through three segments: Loan Production, Loan Servicing, and Investment Management. The Loan Production segment is involved in the origination, acquisition, and sale of mortgage loans.

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Analyst Recommendations for PennyMac Financial Services (NYSE:PFSI)

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