Wedbush Issues Positive Outlook for PFSI Earnings

PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) - Equities researchers at Wedbush upped their Q3 2025 earnings per share (EPS) estimates for shares of PennyMac Financial Services in a report 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 previous forecast of $3.43. 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 $11.88 per share. Wedbush also issued estimates for PennyMac Financial Services' FY2025 earnings at $14.60 EPS and FY2026 earnings at $16.50 EPS.

PFSI has been the topic of a number of other reports. Keefe, Bruyette & Woods cut PennyMac Financial Services from an "outperform" rating to a "market perform" rating and set a $102.00 price objective on the stock. in a research report on Monday, July 22nd. Barclays boosted their price objective 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. StockNews.com lowered PennyMac Financial Services from a "hold" rating to a "sell" rating in a research note on Wednesday, July 3rd. 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. Finally, Piper Sandler boosted their price target on PennyMac Financial Services from $125.00 to $132.00 and gave the company an "overweight" rating in a research note on Wednesday, October 23rd. One analyst has rated the stock with a sell rating, two have assigned a hold rating and five have issued a buy rating to the stock. According to MarketBeat, PennyMac Financial Services currently has an average rating of "Moderate Buy" and an average target price of $115.86.

PennyMac Financial Services Stock Performance

Shares of PFSI traded up $1.44 on Monday, reaching $102.32. 196,417 shares of the stock traded hands, compared to its average volume of 256,434. The firm has a market cap of $5.24 billion, a price-to-earnings ratio of 32.48, a P/E/G ratio of 0.58 and a beta of 1.77. 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 12 month low of $66.59 and a 12 month high of $119.13. The stock's 50-day moving average price is $107.86 and its 200-day moving average price is $98.41.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last issued its quarterly earnings results on Tuesday, October 22nd. The real estate investment trust reported $1.30 EPS for the quarter, missing the consensus estimate of $2.92 by ($1.62). The business had revenue of $411.83 million during the quarter, compared to the consensus estimate of $513.12 million. PennyMac Financial Services had a return on equity of 15.28% and a net margin of 11.45%. The business's quarterly revenue was up 2.9% on a year-over-year basis. During the same period in the prior year, the firm earned $1.77 earnings per share.

Institutional Investors Weigh In On PennyMac Financial Services

Large investors have recently modified their holdings of the business. Blue Trust Inc. increased its holdings in shares of PennyMac Financial Services by 1,529.6% in the second quarter. Blue Trust Inc. now owns 440 shares of the real estate investment trust's stock worth $40,000 after acquiring an additional 413 shares in the last quarter. Hexagon Capital Partners LLC grew its holdings in shares of PennyMac Financial Services by 29.6% during the second quarter. Hexagon Capital Partners LLC now owns 477 shares of the real estate investment trust's stock worth $45,000 after buying an additional 109 shares in the last quarter. SG Americas Securities LLC bought a new position in shares of PennyMac Financial Services during the first quarter worth about $202,000. Cannon Global Investment Management LLC bought a new position in shares of PennyMac Financial Services during the second quarter worth about $255,000. Finally, Seven Eight Capital LP bought a new position in shares of PennyMac Financial Services during the second quarter worth about $268,000. 57.87% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other PennyMac Financial Services news, insider Steven Richard Bailey sold 14,130 shares of the business's stock in a transaction 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 transaction, the insider now owns 14,670 shares of the company's stock, valued at approximately $1,714,629.60. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. In related news, CEO David Spector sold 10,000 shares of the company's stock in a transaction dated Tuesday, September 17th. The stock was sold at an average price of $116.79, for a total value of $1,167,900.00. Following the completion of the sale, the chief executive officer now owns 200,604 shares in the company, valued at approximately $23,428,541.16. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Steven Richard Bailey sold 14,130 shares of the company's stock in a transaction dated Monday, September 16th. The shares were 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 owns 14,670 shares of the company's stock, valued at $1,714,629.60. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 89,855 shares of company stock valued at $9,647,599. 16.60% of the stock is currently owned by corporate insiders.

PennyMac Financial Services Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 27th. Shareholders of record on Monday, November 18th will be paid a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a yield of 1.17%. The ex-dividend date is Monday, November 18th. PennyMac Financial Services's dividend payout ratio is currently 38.10%.

About PennyMac Financial Services

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.