PennyMac Financial Services (NYSE:PFSI) Shares Gap Down After Earnings Miss

PennyMac Financial Services, Inc. (NYSE:PFSI)’s stock price gapped down before the market opened on Friday following a dissappointing 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.

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

PennyMac Financial Services Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Sunday, February 23rd. Stockholders of record on Thursday, February 13th will be issued a dividend of $0.30 per share. The ex-dividend date of this dividend is Thursday, February 13th. This represents a $1.20 annualized dividend and a dividend yield of 1.14%. PennyMac Financial Services’s dividend payout ratio is presently 20.55%.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the company. Wells Fargo & Company boosted their price target on PennyMac Financial Services from $110.00 to $125.00 and gave the company an “overweight” rating in a research note on Thursday, October 24th. Piper Sandler cut their target price on PennyMac Financial Services from $132.00 to $130.00 and set an “overweight” rating for the company in a research report on Friday. Keefe, Bruyette & Woods decreased their price objective on shares of PennyMac Financial Services from $112.00 to $111.00 and set a “market perform” rating on the stock in a research note on Tuesday, December 10th. Wedbush reissued an “outperform” rating and set a $130.00 target price on shares of PennyMac Financial Services in a research note on Wednesday, October 23rd. Finally, Barclays upped their price target on shares of PennyMac Financial Services from $112.00 to $125.00 and gave the stock an “overweight” rating in a report on Tuesday, October 8th. One research analyst has rated the stock with a sell rating, one has issued a hold rating and five have assigned a buy rating to the company. According to data from MarketBeat.com, PennyMac Financial Services has a consensus rating of “Moderate Buy” and a consensus price target of $122.17.

Insiders Place Their Bets

In related news, CFO Daniel Stanley Perotti sold 10,500 shares of the stock in a transaction on Friday, November 15th. The stock was sold at an average price of $100.02, for a total value of $1,050,210.00. Following the transaction, the chief financial officer now directly owns 225,497 shares in the company, valued at $22,554,209.94. This trade represents a 4.45 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO David Spector sold 5,000 shares of PennyMac Financial Services stock in a transaction dated Wednesday, January 8th. The shares were sold at an average price of $99.38, for a total transaction of $496,900.00. Following the transaction, the chief executive officer now owns 165,604 shares of the company’s stock, valued at $16,457,725.52. This represents a 2.93 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 147,844 shares of company stock worth $15,079,791. 16.60% of the stock is currently owned by insiders.

Institutional Trading of PennyMac Financial Services

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. New York State Common Retirement Fund boosted its holdings in PennyMac Financial Services by 6.1% during the fourth quarter. New York State Common Retirement Fund now owns 71,065 shares of the real estate investment trust’s stock worth $7,259,000 after purchasing an additional 4,077 shares during the last quarter. State of New Jersey Common Pension Fund D grew its stake in PennyMac Financial Services by 4.0% in the 4th quarter. State of New Jersey Common Pension Fund D now owns 20,017 shares of the real estate investment trust’s stock valued at $2,045,000 after buying an additional 766 shares in the last quarter. Rhumbline Advisers boosted its stake in PennyMac Financial Services by 1.0% in the 4th quarter. Rhumbline Advisers now owns 41,529 shares of the real estate investment trust’s stock worth $4,242,000 after purchasing an additional 414 shares during the period. Lightrock Netherlands B.V. purchased a new position in PennyMac Financial Services during the fourth quarter valued at approximately $9,006,000. Finally, Precision Wealth Strategies LLC purchased a new position in shares of PennyMac Financial Services during the 4th quarter valued at $367,000. 57.87% of the stock is owned by institutional investors.

PennyMac Financial Services Price Performance

The business has a 50 day simple moving average of $104.65 and a two-hundred day simple moving average of $104.42. The firm has a market capitalization of $5.38 billion, a P/E ratio of 33.31, a price-to-earnings-growth ratio of 0.21 and a beta of 1.78. The company has a debt-to-equity ratio of 2.75, a quick ratio of 0.38 and a current ratio of 0.38.

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.