On Jan. 05, Kurland Stanford L divested U.S. $1,863,773 in shares of PennyMac Financial Services Inc.. The Dir, 10% sold 31,000 shares at a price per share of $60.12. The transaction decreased this specific insider’s holdings to 7,718,813 shares worth around $451.01 million at present.
Jefferies launched its PennyMac Financial Services Inc. [PFSI] rating to the equivalent of a Buy and assigned the price target of $95, in a research note dated December 14, 2020. That figure represents around a 38.49% premium from where the company’s shares closed on Thursday. Some new analysts also started their coverage, with Jefferies’s analysts assigning the shares to “a Buy” rating in a research note to investors issued in mid December. Meanwhile, Credit Suisse had raised its rating on PFSI to “an Outperform” from the earlier “Neutral”, in a research note produced for clients April 13, 2020. In addition, there was an upgrade from JMP Securities on March 23, 2020. The rater changed PFSI from “a Mkt perform” to “a Mkt outperform”.
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Is PennyMac Financial Services Inc. [NYSE:PFSI] a Good Buy Right Now?
It should be noted that PFSI technical indicators for short, intermediate as well as long term progress have placed an overall average of 64% as Buy. The average signal changed from 100% Buy in the last week and compares with 80% Buy in the past month. Data from PennyMac Financial Services Inc.’s Trend Spotter indicated that the signals were Bullish. The stock current average is 0.8 million shares in the past 20 days and the short term average signal indicates a 50% Buy. In the last 50 days, the average trading volume was 0.83 million shares while the medium term average advocated for 50% Buy. The average long-term signal stands at 100% Buy and the 100-day average volume stands at 0.75 million shares.
PFSI Price Performance
On Wall Street, PennyMac Financial Services Inc. [NYSE:PFSI] finished Thursday’s session up 0.74% at $58.43. The stock went up to $59.97 at the same session while its lowest single day price was $56.68. In the last five days, it saw a fall of about -10.31%, PennyMac Financial Services Inc. shares dropped by almost -10.96% since the beginning of the year. However, the share price has dropped to as low as -16.53% below its one year high. On 01/04/21, the company shares recorded $66.56, the highest single-day price it has got to in the last 52-weeks and a 52-week low was seen on 01/07/21, the same year at $56.68. The company’s shares have inclined by 76.31% in the past year. The 50-day SMA achieved is $58.74 while the 200-day SMA is $46.66. Volume dropped to 1.39 million from 1.56 million in the previous session.
PennyMac Financial Services Inc. [PFSI] Valuation Measures
Notably, PennyMac Financial Services Inc. [PFSI] stock can be classified as a good candidate in the listing of underestimated low-priced Mortgage Finance companies to purchase soonest possible with the prevailing 12-month PE ratio of 3.43. The measure means the stock is exchanging at a discount as compared to the 11.75x trailing earnings of the industry. It can be helpful for investors to consider historical price-sales ratio, more specifically, a 1.08 PS value ratio is reported for the last one year of reported earnings. That is lower than the industry average of 2.42 which means PFSI serve an attractive investment opportunity compared to its competitors.
PFSI Stock Support And Resistance Levels
On the 24-hour scale, the immediate backing is perceived around 56.75 level, and in case of violation of this particular level, it will cause more drop to 55.07 level. On the upper level, 61.65 is still the key resistance. The stock may increase to the subsequent resistance at 60.04. The Relative Strength Index (RSI) pinned on the 14-day chart is 41.36, implying a neutral technical stance while the MACD stands at -4.73, meaning price will decrease in the next trading period. Percent R indicator moved to 86.86%, implying bearish price movement. Stochastic %K at 12.37% suggest buying the stock.
What is the short interest in PennyMac Financial Services Inc.?
Short interest in the PennyMac Financial Services Inc. stock has plunged, decreasing by -0.24 million shares to total 3.04 million shares on Dec 14, 2020. The interest had seen shares on Nov 12, 2020 stand at 2.8 million, data from Yahoo Finance shows. The increase of 7.89% suggests the stock saw some increased bearish sentiment. The stock’s days to cover (short ratio) moved to while the shorted shares account for just 9.82% of the overall float for the stock.
PennyMac Financial Services Inc.’s Biggest Shareholders: Who Owns PennyMac Financial Services Inc. [PFSI]?
Filings by Highfields Capital Management LP showed that the firm now holds a total of 15,741,237 shares or roughly 21.73% of the outstanding PFSI shares. This means their shares have reduced by 0 from the 15,741,237 the investor reportedly held in its prior 13-F filing. With the conclusion of the sale, T. Rowe Price Associates, Inc. updated stake is worth $380,220,070. Details in the latest 13F filings reveal that The Vanguard Group, Inc. disposed off their -0.69% stake valued at $221,203,126 while BlackRock Fund Advisors cut theirs at $146,631,837. During the last quarter, The Vanguard Group, Inc. liquidated -26,657 of its shares in PennyMac Financial Services Inc. while BlackRock Fund Advisors sold -80,024 shares. The Dimensional Fund Advisors LP’s holdings currently number 1,600,566 shares at $93521071.38. According to the firm’s last 13F report, SSgA Funds Management, Inc. shares in the company at filing stood at 1,297,032 shares, roughly $74,760,924.
PFSI Earnings Forecast For The Current Quarter
PennyMac Financial Services Inc. [PFSI] is expected to report strong earnings results for the quarter ending on Dec 2020. Consensus estimates give the company expected revenues of $996.5M and an earnings per share of $5.71 for Dec 2020. Looking further ahead, the company is expected to report revenue of $784.1M at an EPS of $3.98 for Mar 2021. The estimates represent upside of -18.00% and -32.24% in the company’s revenue and earnings per share, respectively, on a year-on-year basis.
PFSI Earnings Estimates For The Current Year
For the financial year, PennyMac Financial Services Inc. [NYSE:PFSI] is expected to bring in revenue of $3.65B. The returns are nearly $2.17 billion higher than the company’s actual revenue recorded in the fiscal year 2019. In terms of EPS for the 2020, estimate put it at 20.71, higher than that of FY19 by $15.82. Estimates put this year’s earnings growth at 323.50%, -32.30% for the next, and at an annual 20.73% over the next 5-year period. As for sales, forecasts are for an increase of 146.90% in the current fiscal year and a further -18.00% over the following year.
What are analyst thoughts on PennyMac Financial Services Inc.?
Looking forward to the PennyMac Financial Services Inc. share price prediction, we can see that analysts, surveyed by FactSet, offer the mean price target for PennyMac Financial Services Inc. stock at $77.50 within the next 12 months, which represents almost 24.61 per cent growth from its previous closing price of $58.43. The highest analysts’ target for PennyMac Financial Services Inc. stock projections is $95.00 and the lowest one is $70.00. Still, 8 analysts sharing their consensus rating for PFSI stock in 2021 agree that it is a Buy.