PennyMac Financial Services (PFSI) Stock Price, News & Analysis

Company Overview

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. This segment sources residential conventional and government-insured or guaranteed mortgage loans through correspondent production, consumer direct lending, and broker direct lending. The Servicing segment performs loan servicing for both newly originated loans that are under holding for sale and loans services for others. The segment performs loan administration, collection, and default management activities, including the collection and remittance of loan payments; responds to customer inquiries; provides accounting for principal and interest; holds custodial funds for the payment of property taxes and insurance premiums; counsels delinquent borrowers; and supervising foreclosures and property dispositions, as well as administers loss mitigation activities, such as modification and forbearance programs. The Investment Management segment is involved in sourcing, performing diligence, bidding, and closing investment asset acquisitions; managing correspondent production activities for PennyMac Mortgage Investment Trust; and managing acquired assets. The company was founded in 2008 and is headquartered in Westlake Village, California.

Key Stats

• Today's Range: $113.66 to $117.32
• 50-Day Range: $93.70 to $116.65
• 52-Week Range: $62.15 to $119.13
• Volume: 370,136 shs
• Average Volume: 251,868 shs
• Market Capitalization: $5.82 billion
• P/E Ratio: 39.49
• Dividend Yield: 1.06%
• Price Target: $107.17
• Consensus Rating: Moderate Buy

PennyMac Financial Services Stock Analysis - MarketRank™

PennyMac Financial Services scored higher than 90% of companies evaluated by MarketBeat, and ranked 146th out of 908 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 1.3 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

PennyMac Financial Services has received a consensus rating of Moderate Buy. The company's average rating score is 2.67, and is based on 4 buy ratings, 2 hold ratings, and no sell ratings.

Amount of Analyst Coverage

PennyMac Financial Services has only been the subject of 3 research reports in the past 90 days.

Earnings and Valuation

• Score: 4.4 / 5
• Proj. Earnings Growth: 18.85%

Earnings Growth

Earnings for PennyMac Financial Services are expected to grow by 18.85% in the coming year, from $10.61 to $12.61 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of PennyMac Financial Services is 39.49, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 133.24.

Price to Earnings Ratio vs. Sector

The P/E ratio of PennyMac Financial Services is 39.49, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 48.31.

Price to Earnings Growth Ratio

PennyMac Financial Services has a PEG Ratio of 0.72. PEG Ratios below 1 indicate that a company could be undervalued.

Price to Book Value per Share Ratio

PennyMac Financial Services has a P/B Ratio of 1.61. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 2.0 / 5
• Short Interest Level: Bearish

Percentage of Shares Shorted

3.37% of the float of PennyMac Financial Services has been sold short.

Short Interest Ratio / Days to Cover

PennyMac Financial Services has a short interest ratio ("days to cover") of 5.9.

Change versus previous month

Short interest in PennyMac Financial Services has recently increased by 31.45%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 2.5 / 5
• Dividend Strength: Moderate

Dividend Yield

PennyMac Financial Services pays a meaningful dividend of 1.08%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

PennyMac Financial Services does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of PennyMac Financial Services is 41.67%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, PennyMac Financial Services will have a dividend payout ratio of 9.52% next year. This indicates that PennyMac Financial Services will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: 2.8 / 5
• Environmental Score: -1.38

Percentage of Shares Shorted

3.37% of the float of PennyMac Financial Services has been sold short.

Short Interest Ratio / Days to Cover

PennyMac Financial Services has a short interest ratio ("days to cover") of 5.9.

Change versus previous month

Short interest in PennyMac Financial Services has recently increased by 31.45%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 1.8 / 5
• News Sentiment: 0.21

News Sentiment

PennyMac Financial Services has a news sentiment score of 0.21. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.56 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 10 news articles for PennyMac Financial Services this week, compared to 4 articles on an average week.

Company Ownership

• Score: 2.5 / 5
• Insider Trading: Selling Shares

Insider Buying vs. Insider Selling

In the past three months, PennyMac Financial Services insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $8,306,734.00 in company stock.

Percentage Held by Insiders

16.60% of the stock of PennyMac Financial Services is held by insiders. A high percentage of insider ownership can be a sign of company health.

Percentage Held by Institutions

57.87% of the stock of PennyMac Financial Services is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

PFSI Stock Analysis - Frequently Asked Questions

How have PFSI shares performed this year?

PennyMac Financial Services' stock was trading at $88.37 at the beginning of the year. Since then, PFSI stock has increased by 28.7% and is now trading at $113.72.
View the best growth stocks for 2024 here.

How were PennyMac Financial Services' earnings last quarter?

PennyMac Financial Services, Inc. (NYSE:PFSI) announced its quarterly earnings results on Tuesday, July, 23rd. The real estate investment trust reported $1.85 EPS for the quarter, missing analysts' consensus estimates of $2.65 by $0.80. The business's revenue was up 20.7% on a year-over-year basis.

Who are PennyMac Financial Services' major shareholders?

PennyMac Financial Services' top institutional investors include Dimensional Fund Advisors LP (4.85%), American Century Companies Inc. (0.68%), Bank of New York Mellon Corp (0.36%) and Principal Financial Group Inc. (0.30%). Insiders that own company stock include Doug Jones, Daniel Stanley Perotti, David Spector, Vandad Fartaj, Joseph F Mazzella, Gregory L Hendry, Patrick Kinsella, William Herbert Chang, James K Hunt, Derek Stark, Steven Richard Bailey, James Follette, Donald J White, Anne Mccallion, Mfn Partners, Lp and Farhad Nanji.
View institutional ownership trends.

How do I buy shares of PennyMac Financial Services?

Shares of PFSI stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of PennyMac Financial Services own?

Based on aggregate information from My MarketBeat watchlists, some other companies that PennyMac Financial Services investors own include Alibaba Group (BABA), NVIDIA (NVDA), Taiwan Semiconductor Manufacturing (TSM), Advanced Micro Devices (AMD), Intel (INTC), Innovative Industrial Properties (IIPR) and Verizon Communications (VZ).

Company Calendar

• Last Earnings: 7/23/2024
• Ex-Dividend for 8/23 Dividend: 8/13/2024
• Dividend Payable: 8/23/2024
• Today: 9/19/2024
• Next Earnings (Estimated): 10/24/2024
• Fiscal Year End: 12/31/2024

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Finance
• Industry: Mortgage bankers & correspondents
• Sub-Industry: Banking
• Current Symbol: NYSE:PFSI
• CUSIP: N/A
• CIK: 1568669
• Web: www.pennymacfinancial.com
• Phone: (818) 224-7442
• Fax: N/A
• Employees: 3,900
• Year Founded: 2008

Price Target and Rating

• Average Stock Price Target: $107.17
• High Stock Price Target: $120.00
• Low Stock Price Target: $85.00
• Potential Upside/Downside: -6.8%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.67
• Research Coverage: 6 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $2.88
• Trailing P/E Ratio: 39.92
• Forward P/E Ratio: 10.84
• P/E Growth: 0.72
• Net Income: $144.66 million
• Net Margins: 13.13%
• Pretax Margin: 16.98%
• Return on Equity: 12.69%
• Return on Assets: 2.30%

Debt

• Debt-to-Equity Ratio: 2.75
• Current Ratio: 0.37
• Quick Ratio: 0.37

Sales & Book Value

• Annual Sales: $1.40 billion
• Price / Sales: 4.20
• Cash Flow: $7.45 per share
• Price / Cash Flow: 15.44
• Book Value: $70.52 per share
• Price / Book: 1.63

Miscellaneous

• Outstanding Shares: 51,190,000
• Free Float: 42,470,000
• Market Cap: $5.89 billion
• Optionable: Optionable
• Beta: 1.77