Wedbush Comments on PennyMac Financial Services, Inc.’s Q3 2024 Earnings (NYSE:PFSI)

PennyMac Financial Services, Inc. (NYSE:PFSI) – Wedbush lifted their Q3 2024 earnings estimates for PennyMac Financial Services in a research report issued to clients and investors on Thursday, October 10th. Wedbush analyst J. Mccanless now expects that the real estate investment trust will earn $3.00 per share for the quarter, up from their previous forecast of $2.87. Wedbush has a “Outperform” rating and a $120.00 price target on the stock. The consensus estimate for PennyMac Financial Services’ current full-year earnings is $11.06 per share. Wedbush also issued estimates for PennyMac Financial Services’ FY2024 earnings at $11.25 EPS, Q2 2025 earnings at $3.09 EPS, Q3 2025 earnings at $3.43 EPS, Q4 2025 earnings at $3.50 EPS and FY2026 earnings at $14.15 EPS.

PennyMac Financial Services (NYSE:PFSI) last announced its quarterly earnings results on Tuesday, July 23rd. The real estate investment trust reported $1.85 earnings per share for the quarter, missing analysts’ consensus estimates of $2.65 by ($0.80). PennyMac Financial Services had a return on equity of 12.69% and a net margin of 13.13%. The company 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 posted $1.11 earnings per share. The firm’s revenue for the quarter was up 20.7% compared to the same quarter last year.

Other equities analysts have also issued research reports about the stock. Barclays upped their price target on shares of PennyMac Financial Services from $112.00 to $125.00 and gave the stock an “overweight” rating in a research report on Tuesday, October 8th. Piper Sandler upped their target price on shares of PennyMac Financial Services from $112.00 to $125.00 and gave the stock an “overweight” rating in a research report on Tuesday, October 1st. StockNews.com lowered shares of PennyMac Financial Services from a “hold” rating to a “sell” rating in a research note on Wednesday, July 3rd. Finally, Keefe, Bruyette & Woods downgraded PennyMac Financial Services from an “outperform” rating to a “market perform” rating and set a $102.00 price objective for the company. in a research report on Monday, July 22nd. 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 stock. According to data from MarketBeat, PennyMac Financial Services has an average rating of “Hold” and an average target price of $111.50.

PennyMac Financial Services Price Performance

Shares of NYSE PFSI opened at $109.02 on Monday. The company has a debt-to-equity ratio of 2.75, a current ratio of 0.37 and a quick ratio of 0.37. The firm has a market capitalization of $5.55 billion, a PE ratio of 37.85, a P/E/G ratio of 0.66 and a beta of 1.77. PennyMac Financial Services has a 1-year low of $62.15 and a 1-year high of $119.13. The business’s fifty day moving average price is $106.47 and its two-hundred day moving average price is $97.41.

Institutional Investors Weigh In On PennyMac Financial Services

A number of large investors have recently made changes to their positions in the company. Creative Planning grew its holdings in shares of PennyMac Financial Services by 17.7% during the third quarter. Creative Planning now owns 5,856 shares of the real estate investment trust’s stock valued at $667,000 after buying an additional 879 shares in the last quarter. SG Americas Securities LLC boosted its position in PennyMac Financial Services by 291.8% during the 3rd quarter. SG Americas Securities LLC now owns 11,911 shares of the real estate investment trust’s stock worth $1,357,000 after acquiring an additional 8,871 shares during the period. Algert Global LLC purchased a new position in PennyMac Financial Services during the 2nd quarter valued at about $408,000. The Manufacturers Life Insurance Company increased its holdings in shares of PennyMac Financial Services by 6.7% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 18,449 shares of the real estate investment trust’s stock valued at $1,745,000 after purchasing an additional 1,166 shares during the period. Finally, Maverick Capital Ltd. lifted its position in shares of PennyMac Financial Services by 263.8% in the second quarter. Maverick Capital Ltd. now owns 12,904 shares of the real estate investment trust’s stock worth $1,221,000 after purchasing an additional 9,357 shares in the last quarter. Institutional investors and hedge funds own 57.87% of the company’s stock.

Insider Activity

In related news, insider Steven Richard Bailey sold 14,130 shares of the firm’s stock in a transaction dated Monday, September 16th. The stock was sold at an average price of $116.88, for a total transaction of $1,651,514.40. Following the completion of the transaction, the insider now owns 14,670 shares of the company’s stock, valued at $1,714,629.60. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. In other PennyMac Financial Services news, insider Steven Richard Bailey sold 14,130 shares of PennyMac Financial Services stock in a transaction that occurred on Monday, September 16th. The shares were sold at an average price of $116.88, for a total value of $1,651,514.40. Following the transaction, the insider now owns 14,670 shares in the company, valued at approximately $1,714,629.60. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Anne Mccallion sold 23,829 shares of the business’s stock in a transaction on Monday, August 26th. The stock was sold at an average price of $103.14, for a total value of $2,457,723.06. Following the sale, the director now directly owns 1,854 shares in the company, valued at $191,221.56. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 89,855 shares of company stock worth $9,647,599 over the last three months. Corporate insiders own 16.60% of the company’s stock.

PennyMac Financial Services Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 23rd. Stockholders of record on Tuesday, August 13th were paid a $0.30 dividend. This is a positive change from PennyMac Financial Services’s previous quarterly dividend of $0.20. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.10%. The ex-dividend date was Tuesday, August 13th. PennyMac Financial Services’s dividend payout ratio is currently 41.67%.

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.