PennyMac Financial Services (NYSE:PFSI) Shares Gap Down Following Weak Earnings

PennyMac Financial Services, Inc. (NYSE:PFSI - Get Free Report) shares gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. 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 traded.

The real estate investment trust reported $2.88 EPS for the quarter, missing the consensus estimate of $3.09 by ($0.21). PennyMac Financial Services had a return on equity of 16.80% and a net margin of 19.54%.

PennyMac Financial Services Announces Dividend

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

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on PFSI. Barclays increased their target price 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. Wedbush reiterated an "outperform" rating and set a $130.00 price objective on shares of PennyMac Financial Services in a research note on Wednesday, October 23rd. Keefe, Bruyette & Woods reduced their price objective on shares of 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. Wells Fargo & Company increased their target price on PennyMac Financial Services from $110.00 to $125.00 and gave the company an "overweight" rating in a research report on Thursday, October 24th. Finally, Piper Sandler cut their target price on PennyMac Financial Services from $132.00 to $130.00 and set an "overweight" rating on the stock in a research note on Friday. One analyst has rated the stock with a sell rating, one has issued a hold rating and five have given a buy rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $122.17.

Insider Activity at PennyMac Financial Services

In other PennyMac Financial Services news, CEO David Spector sold 5,000 shares of PennyMac Financial Services stock in a transaction that occurred on Wednesday, January 8th. The shares were sold at an average price of $99.38, for a total transaction of $496,900.00. Following the completion of the sale, the chief executive officer now directly owns 165,604 shares in the company, valued at approximately $16,457,725.52. The trade was a 2.93 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CFO Daniel Stanley Perotti sold 10,500 shares of the firm'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 sale, the chief financial officer now directly owns 225,497 shares in the company, valued at approximately $22,554,209.94. This trade represents a 4.45 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 147,844 shares of company stock valued at $15,079,791 in the last ninety days. Corporate insiders own 16.60% of the company's stock.

Institutional Investors Weigh In On PennyMac Financial Services

A number of institutional investors have recently made changes to their positions in the stock. State Street Corp grew its stake in PennyMac Financial Services by 6.0% during the 3rd quarter. State Street Corp now owns 911,741 shares of the real estate investment trust's stock worth $103,911,000 after purchasing an additional 51,777 shares in the last quarter. JPMorgan Chase & Co. grew its stake in shares of PennyMac Financial Services by 2.3% in the 3rd quarter. JPMorgan Chase & Co. now owns 954,713 shares of the real estate investment trust's stock valued at $108,809,000 after purchasing an additional 21,751 shares during the last quarter. XTX Topco Ltd acquired a new position in PennyMac Financial Services in the 3rd quarter valued at $614,000. HighTower Advisors LLC acquired a new position in PennyMac Financial Services during the 3rd quarter worth approximately $702,000. Finally, FORA Capital LLC acquired a new stake in shares of PennyMac Financial Services in the 3rd quarter valued at approximately $616,000. 57.87% of the stock is currently owned by institutional investors and hedge funds.

PennyMac Financial Services Price Performance

The company has a debt-to-equity ratio of 2.75, a current ratio of 0.38 and a quick ratio of 0.38. The company's 50 day moving average is $104.54 and its 200 day moving average is $104.44. The stock has a market cap of $5.38 billion, a price-to-earnings ratio of 17.97, a PEG ratio of 0.20 and a beta of 1.78.

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.