Wedbush Issues Optimistic Outlook for PFSI Earnings

PennyMac Financial Services, Inc. (NYSE:PFSI) – Analysts at Wedbush boosted their Q3 2025 earnings per share estimates for shares of PennyMac Financial Services in a research note issued on Wednesday, October 23rd. Wedbush analyst J. Mccanless now anticipates that the real estate investment trust will post earnings of $3.87 per share for the quarter, up from their prior estimate of $3.43. Wedbush currently has a “Outperform” rating and a $130.00 target price 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’ FY2025 earnings at $14.60 EPS and FY2026 earnings at $16.50 EPS.

PennyMac Financial Services (NYSE:PFSI) last posted 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). PennyMac Financial Services had a return on equity of 15.28% and a net margin of 11.45%. The business had revenue of $411.83 million for the quarter, compared to analyst estimates of $513.12 million. During the same period last year, the firm posted $1.77 EPS. PennyMac Financial Services’s quarterly revenue was up 2.9% on a year-over-year basis.

A number of other equities analysts have also recently commented on PFSI. Wells Fargo & Company boosted their price target on PennyMac Financial Services from $110.00 to $125.00 and gave the stock an “overweight” rating in a report on Thursday. Barclays upped their target price on PennyMac Financial Services from $112.00 to $125.00 and gave the stock an “overweight” rating in a report on Tuesday, October 8th. Piper Sandler upped their target price on PennyMac Financial Services from $125.00 to $132.00 and gave the stock an “overweight” rating in a report on Wednesday, October 23rd. StockNews.com cut PennyMac Financial Services from a “hold” rating to a “sell” rating in a report on Wednesday, July 3rd. Finally, Keefe, Bruyette & Woods cut PennyMac Financial Services from an “outperform” rating to a “market perform” rating and set a $102.00 target price for the company. in a report on Monday, July 22nd. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and five have issued a buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $115.86.

PennyMac Financial Services Price Performance

PennyMac Financial Services stock opened at $100.88 on Monday. The company has a debt-to-equity ratio of 2.75, a quick ratio of 0.37 and a current ratio of 0.37. PennyMac Financial Services has a 52 week low of $62.75 and a 52 week high of $119.13. The stock has a market capitalization of $5.14 billion, a P/E ratio of 35.03, a price-to-earnings-growth ratio of 0.63 and a beta of 1.77. The stock has a fifty day moving average of $107.79 and a 200-day moving average of $98.32.

Institutional Trading of PennyMac Financial Services

Institutional investors and hedge funds have recently modified their holdings of the business. Blue Trust Inc. grew its holdings in PennyMac Financial Services by 1,529.6% during the second quarter. Blue Trust Inc. now owns 440 shares of the real estate investment trust’s stock valued at $40,000 after purchasing an additional 413 shares during the period. Hexagon Capital Partners LLC boosted its holdings in shares of PennyMac Financial Services by 29.6% in the second quarter. Hexagon Capital Partners LLC now owns 477 shares of the real estate investment trust’s stock worth $45,000 after acquiring an additional 109 shares during the period. SG Americas Securities LLC bought a new stake in PennyMac Financial Services during the first quarter valued at $202,000. Cannon Global Investment Management LLC purchased a new stake in shares of PennyMac Financial Services in the 2nd quarter valued at about $255,000. Finally, Seven Eight Capital LP bought a new stake in shares of PennyMac Financial Services during the 2nd quarter valued at about $268,000. 57.87% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, CEO David Spector sold 10,000 shares of the company’s stock in a transaction that occurred 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 transaction, the chief executive officer now directly owns 190,604 shares of the company’s stock, valued at approximately $20,503,272.28. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In other news, insider Steven Richard Bailey sold 14,130 shares of the stock in a transaction that occurred on Monday, September 16th. The stock was sold at an average price of $116.88, for a total value of $1,651,514.40. Following the completion of the sale, the insider now directly owns 14,670 shares of the company’s stock, valued at $1,714,629.60. 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 this hyperlink. Also, CEO David Spector sold 10,000 shares of the stock in a transaction that occurred on Monday, October 14th. The shares were sold at an average price of $107.57, for a total value of $1,075,700.00. Following the sale, the chief executive officer now directly owns 190,604 shares of the company’s stock, valued at $20,503,272.28. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 89,855 shares of company stock valued at $9,647,599. 16.60% of the stock is owned by company insiders.

PennyMac Financial Services Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, November 27th. Investors of record on Monday, November 18th will be paid a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 1.19%. The ex-dividend date is Monday, November 18th. PennyMac Financial Services’s dividend payout ratio (DPR) is currently 41.67%.

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.