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

Shares of PennyMac Financial Services, Inc. (NYSE:PFSI) gapped down prior to trading on Friday following a weaker than expected earnings announcement. 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 net margin of 11.45% and a return on equity of 15.13%.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on PFSI shares. Barclays lifted 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. Piper Sandler upped their target price on shares of PennyMac Financial Services from $125.00 to $132.00 and gave the stock an “overweight” rating in a research report on Wednesday, October 23rd. Keefe, Bruyette & Woods dropped 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 report on Tuesday, December 10th. Wells Fargo & Company lifted their target price on PennyMac Financial Services from $110.00 to $125.00 and gave the company an “overweight” rating in a research note on Thursday, October 24th. Finally, Wedbush reaffirmed an “outperform” rating and set a $130.00 price target on shares of PennyMac Financial Services in a research note on Wednesday, October 23rd. One analyst has rated the stock with a sell rating, one has assigned a hold rating and five have given a buy rating to the stock. According to data from MarketBeat.com, PennyMac Financial Services currently has an average rating of “Moderate Buy” and a consensus target price of $122.50.

Insiders Place Their Bets

In other news, CEO David Spector sold 5,000 shares of PennyMac Financial Services stock in a transaction dated Wednesday, January 8th. The stock was sold at an average price of $99.38, for a total transaction of $496,900.00. Following the transaction, the chief executive officer now owns 165,604 shares in the company, valued at $16,457,725.52. The trade was a 2.93 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Doug Jones sold 7,882 shares of the stock in a transaction that occurred on Thursday, December 26th. The stock was sold at an average price of $103.16, for a total value of $813,107.12. Following the sale, the director now directly owns 450,000 shares of the company’s stock, valued at approximately $46,422,000. The trade was a 1.72 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 147,844 shares of company stock worth $15,079,791. Insiders own 16.60% of the company’s stock.

Institutional Investors Weigh In On PennyMac Financial Services

Several institutional investors have recently added to or reduced their stakes in the stock. Harbor Capital Advisors Inc. acquired a new position in PennyMac Financial Services during the 3rd quarter worth approximately $37,000. Blue Trust Inc. increased its position in shares of PennyMac Financial Services by 59.5% in the third quarter. Blue Trust Inc. now owns 702 shares of the real estate investment trust’s stock valued at $80,000 after acquiring an additional 262 shares during the last quarter. KBC Group NV raised its stake in shares of PennyMac Financial Services by 20.3% during the 3rd quarter. KBC Group NV now owns 1,340 shares of the real estate investment trust’s stock worth $153,000 after purchasing an additional 226 shares in the last quarter. Quantbot Technologies LP raised its position in PennyMac Financial Services by 23.7% during the third quarter. Quantbot Technologies LP now owns 1,516 shares of the real estate investment trust’s stock worth $173,000 after acquiring an additional 290 shares in the last quarter. Finally, Verition Fund Management LLC acquired a new stake in PennyMac Financial Services in the third quarter valued at $203,000. 57.87% of the stock is owned by institutional investors.

PennyMac Financial Services Trading Down 7.8 %

The company has a market cap of $5.43 billion, a P/E ratio of 33.65, a P/E/G ratio of 0.21 and a beta of 1.78. The business’s 50-day moving average price is $104.67 and its 200 day moving average price is $104.39. The company has a debt-to-equity ratio of 2.75, a quick ratio of 0.38 and a current ratio of 0.38.

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.