PennyMac Financial Services, Inc. (NYSE:PFSI) to Issue Quarterly Dividend of $0.30

PennyMac Financial Services, Inc. (NYSE:PFSI) declared a quarterly dividend on Wednesday, July 24th, Wall Street Journal reports. Shareholders of record on Tuesday, August 13th will be given a dividend of 0.30 per share by the real estate investment trust on Friday, August 23rd. This represents a $1.20 annualized dividend and a yield of 1.24%. The ex-dividend date of this dividend is Tuesday, August 13th. This is an increase from PennyMac Financial Services’s previous quarterly dividend of $0.20.

PennyMac Financial Services has increased its dividend by an average of 14.0% annually over the last three years. PennyMac Financial Services has a dividend payout ratio of 6.5% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect PennyMac Financial Services to earn $12.53 per share next year, which means the company should continue to be able to cover its $0.80 annual dividend with an expected future payout ratio of 6.4%.

PennyMac Financial Services Stock Performance

PennyMac Financial Services stock traded down $3.54 during trading hours on Wednesday, hitting $96.86. The company had a trading volume of 379,967 shares, compared to its average volume of 243,300. The firm has a 50-day moving average of $93.55 and a 200 day moving average of $90.06. PennyMac Financial Services has a one year low of $62.15 and a one year high of $105.94. The firm has a market cap of $4.93 billion, a PE ratio of 33.95, a PEG ratio of 0.64 and a beta of 1.72. The company has a debt-to-equity ratio of 2.33, a current ratio of 0.39 and a quick ratio of 0.39.

PennyMac Financial Services (NYSE:PFSI) last announced its earnings results on Tuesday, July 23rd. The real estate investment trust reported $1.85 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.65 by ($0.80). PennyMac Financial Services had a return on equity of 10.48% and a net margin of 10.94%. The business had revenue of $406.13 million for the quarter, compared to analyst estimates of $469.64 million. During the same quarter in the previous year, the company earned $1.11 EPS. The business’s revenue for the quarter was up 20.7% on a year-over-year basis. On average, sell-side analysts expect that PennyMac Financial Services will post 10.55 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on PFSI. Piper Sandler raised their target price on shares of PennyMac Financial Services from $110.00 to $112.00 and gave the company an “overweight” rating in a research report on Wednesday. Deutsche Bank Aktiengesellschaft dropped their price target on shares of PennyMac Financial Services from $115.00 to $112.00 and set a “buy” rating for the company in a research note on Thursday, April 25th. Keefe, Bruyette & Woods downgraded shares of PennyMac Financial Services from an “outperform” rating to a “market perform” rating and set a $102.00 price target for the company. in a research note on Monday. Barclays raised their price target on shares of PennyMac Financial Services from $103.00 to $112.00 and gave the company an “overweight” rating in a research note on Tuesday, April 9th. Finally, Wedbush raised their price target on shares of PennyMac Financial Services from $110.00 to $120.00 and gave the company an “outperform” rating in a research note on Wednesday. One analyst has rated the stock with a sell rating, two have assigned a hold rating and four have given a buy rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $107.17.

Insider Buying and Selling

In other PennyMac Financial Services news, CEO David Spector sold 10,000 shares of the firm’s stock in a transaction on Monday, June 3rd. The shares were sold at an average price of $90.56, for a total value of $905,600.00. Following the completion of the sale, the chief executive officer now directly owns 230,604 shares in the company, valued at $20,883,498.24. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. In other PennyMac Financial Services news, CEO David Spector sold 10,000 shares of the firm’s stock in a transaction on Monday, June 3rd. The shares were sold at an average price of $90.56, for a total value of $905,600.00. Following the completion of the sale, the chief executive officer now directly owns 230,604 shares in the company, valued at $20,883,498.24. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Joseph F. Mazzella sold 16,465 shares of the firm’s stock in a transaction on Friday, May 3rd. The stock was sold at an average price of $90.73, for a total transaction of $1,493,869.45. Following the completion of the sale, the director now owns 116,546 shares of the company’s stock, valued at $10,574,218.58. The disclosure for this sale can be found here. Insiders sold 87,865 shares of company stock valued at $8,045,169 over the last quarter. Insiders own 16.60% of the company’s stock.

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.