PennyMac Financial Services (NYSE:PFSI) Stock Price Down 3.6% - Here's Why

PennyMac Financial Services, Inc. (NYSE:PFSI - Get Free Report)'s share price was down 3.6% during trading on Thursday . The stock traded as low as $98.25 and last traded at $98.44. Approximately 118,976 shares traded hands during trading, a decline of 54% from the average daily volume of 257,161 shares. The stock had previously closed at $102.14.

Analyst Ratings Changes

PFSI has been the topic of a number of recent analyst reports. Wells Fargo & Company boosted their price target on shares of PennyMac Financial Services from $110.00 to $125.00 and gave the stock an "overweight" rating in a research report on Thursday, October 24th. Wedbush reissued an "outperform" rating and set a $130.00 target price on shares of PennyMac Financial Services in a report on Wednesday, October 23rd. Keefe, Bruyette & Woods decreased their price target on PennyMac Financial Services from $112.00 to $111.00 and set a "market perform" rating for the company in a research note on Tuesday, December 10th. Piper Sandler boosted their price objective on PennyMac Financial Services from $125.00 to $132.00 and gave the stock an "overweight" rating in a research note on Wednesday, October 23rd. Finally, Barclays upped their price objective on PennyMac Financial Services from $112.00 to $125.00 and gave the company an "overweight" rating in a report on Tuesday, October 8th. One research analyst has rated the stock with a sell rating, one has assigned a hold rating and five have given a buy rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $122.50.

PennyMac Financial Services Trading Down 2.3 %

The company has a debt-to-equity ratio of 2.75, a quick ratio of 0.38 and a current ratio of 0.38. The firm has a market capitalization of $5.12 billion, a P/E ratio of 31.70 and a beta of 1.78. The firm has a 50 day moving average price of $103.48 and a two-hundred day moving average price of $102.71.

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 earnings per share for the quarter, missing analysts' consensus estimates of $2.92 by ($1.62). PennyMac Financial Services had a return on equity of 15.13% and a net margin of 11.45%. The company had revenue of $411.83 million during the quarter, compared to analysts' expectations of $513.12 million. During the same period in the prior year, the business posted $1.77 EPS. The company's revenue for the quarter was up 2.9% compared to the same quarter last year. On average, equities research analysts expect that PennyMac Financial Services, Inc. will post 11.88 EPS for the current fiscal year.

PennyMac Financial Services Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, November 27th. Stockholders of record on Monday, November 18th were issued a dividend of $0.30 per share. The ex-dividend date was Monday, November 18th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.20%. PennyMac Financial Services's dividend payout ratio is currently 38.10%.

Insider Activity at PennyMac Financial Services

In other news, CFO Daniel Stanley Perotti sold 10,500 shares of the company's stock in a transaction dated 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 owns 225,497 shares in the company, valued at $22,554,209.94. This 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 10,000 shares of the firm'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 sale, the chief executive officer now owns 190,604 shares of the company's stock, valued at approximately $20,503,272.28. This represents a 4.98 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 152,844 shares of company stock worth $15,658,591. 16.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On PennyMac Financial Services

A number of hedge funds have recently modified their holdings of PFSI. Bank of New York Mellon Corp grew its stake in shares of PennyMac Financial Services by 2.8% in the 2nd quarter. Bank of New York Mellon Corp now owns 182,245 shares of the real estate investment trust's stock valued at $17,240,000 after buying an additional 4,930 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank lifted its stake in PennyMac Financial Services by 10.8% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 9,554 shares of the real estate investment trust's stock valued at $904,000 after acquiring an additional 935 shares during the last quarter. Cannon Global Investment Management LLC bought a new stake in PennyMac Financial Services in the second quarter worth approximately $255,000. Arizona State Retirement System increased its stake in shares of PennyMac Financial Services by 2.9% during the 2nd quarter. Arizona State Retirement System now owns 11,999 shares of the real estate investment trust's stock worth $1,135,000 after purchasing an additional 336 shares during the last quarter. Finally, Quest Partners LLC raised its holdings in shares of PennyMac Financial Services by 493.5% during the 2nd quarter. Quest Partners LLC now owns 4,137 shares of the real estate investment trust's stock valued at $391,000 after purchasing an additional 3,440 shares in the last quarter. 57.87% of the stock is owned by institutional investors and hedge funds.

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.