PennyMac Financial Services Inc. [NYSE: PFSI] stock went on an upward path that rose over 6.70% on Friday, amounting to a one-week price increase of more than 8.89%. The company report on September 24, 2020 that PennyMac Financial Services, Inc. Announces Pricing of Upsized Private Offering of $500 Million of Senior Notes.
PennyMac Financial Services, Inc. (NYSE: PFSI) (the “Company”) today announced the pricing of its offering of $500 million aggregate principal amount of 5.375% Senior Notes due 2025 (the “Notes”). The size of the offering was increased from the previously announced $400 million aggregate principal amount. The Notes will bear interest at 5.375% per annum and will mature on October 15, 2025. Interest on the Notes will be payable semi-annually on April 15 and October 15 of each year, beginning on April 15, 2021. The Notes will be fully and unconditionally guaranteed on an unsecured senior basis by the Company’s existing and future wholly owned domestic subsidiaries, other than certain excluded subsidiaries. The Company intends to use the net proceeds from this offering for general corporate purposes, which may include the repayment of the Company’s existing secured warehouse borrowings. The offering is expected to close on September 29, 2020, subject to customary closing conditions.
The offering was made solely by means of a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to certain non-U.S. persons pursuant to Regulation S under the Securities Act. The Notes have not been and are not expected to be registered under the Securities Act or under any state securities laws and, unless so registered, may not be offered or sold in the United States or to U.S. persons absent an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.
Over the last 12 months, PFSI stock rose by 108.93%. The one-year PennyMac Financial Services Inc. stock forecast points to a potential upside of 3.99. The average equity rating for PFSI stock is currently 1.90, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $4.43 billion, with 77.79 million shares outstanding and 40.18 million shares in the current float. Compared to the average trading volume of 681.27K shares, PFSI stock reached a trading volume of 1184108 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on PennyMac Financial Services Inc. [PFSI]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PFSI shares is $68.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on PFSI stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Credit Suisse have made an estimate for PennyMac Financial Services Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on April 13, 2020. The new note on the price target was released on March 23, 2020, representing the official price target for PennyMac Financial Services Inc. stock. Previously, the target price had yet another raise to $40, while Keefe Bruyette analysts kept a Outperform rating on PFSI stock.
The Average True Range (ATR) for PennyMac Financial Services Inc. is set at 2.76, with the Price to Sales ratio for PFSI stock in the period of the last 12 months amounting to 1.37. The Price to Book ratio for the last quarter was 2.05, with the Price to Cash per share for the same quarter was set at 13.42.
PFSI Stock Performance Analysis:
PennyMac Financial Services Inc. [PFSI] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 8.89. With this latest performance, PFSI shares gained by 23.30% in over the last four-week period, additionally plugging by 145.36% over the last 6 months – not to mention a rise of 108.93% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PFSI stock in for the last two-week period is set at 73.93, with the RSI for the last a single of trading hit 80.65, and the three-weeks RSI is set at 73.24 for PennyMac Financial Services Inc. [PFSI]. The present Moving Average for the last 50 days of trading for this stock 53.90, while it was recorded at 61.21 for the last single week of trading, and 38.61 for the last 200 days.
Insight into PennyMac Financial Services Inc. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and PennyMac Financial Services Inc. [PFSI] shares currently have an operating margin of +23.94 and a Gross Margin at +83.46. PennyMac Financial Services Inc.’s Net Margin is presently recorded at +17.77.
Return on Total Capital for PFSI is now 7.61, given the latest momentum, and Return on Invested Capital for the company is 11.59. Return on Equity for this stock inclined to 21.15, with Return on Assets sitting at 4.44. When it comes to the capital structure of this company, PennyMac Financial Services Inc. [PFSI] has a Total Debt to Total Equity ratio set at 301.90. Additionally, PFSI Total Debt to Total Capital is recorded at 75.12, with Total Debt to Total Assets ending up at 60.99. Long-Term Debt to Equity for the company is recorded at 75.65, with the Long-Term Debt to Total Capital now at 18.82.
Reflecting on the efficiency of the workforce at the company, PennyMac Financial Services Inc. [PFSI] managed to generate an average of $93,230 per employee. Receivables Turnover for the company is 13.82 with a Total Asset Turnover recorded at a value of 0.25.
PFSI Stock EPS
With the latest financial reports released by the company, PennyMac Financial Services Inc. posted 1.51/share EPS, while the average EPS was predicted by analysts to be reported at 1.31/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 15.30%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for PFSI. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for PennyMac Financial Services Inc. go to 20.73%.
PennyMac Financial Services Inc. [PFSI] Insider Position Details
There are presently around $2,480 million, or 53.70% of PFSI stock, in the hands of institutional investors. The top three institutional holders of PFSI stocks are: PRICE T ROWE ASSOCIATES INC /MD/ with ownership of 6,967,885, which is approximately 2.342% of the company’s market cap and around 3.00% of the total institutional ownership; VANGUARD GROUP INC, holding 3,971,743 shares of the stock with an approximate value of $259.31 million in PFSI stocks shares; and BLACKROCK INC., currently with $193.71 million in PFSI stock with ownership of nearly -64.023% of the company’s market capitalization.
Positions in PennyMac Financial Services Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 121 institutional holders increased their position in PennyMac Financial Services Inc. [NYSE:PFSI] by around 6,715,218 shares. Additionally, 83 investors decreased positions by around 11,687,673 shares, while 8 investors held positions by with 19,586,369 shares. The mentioned changes placed institutional holdings at 37,989,260 shares, according to the latest SEC report filing. PFSI stock had 47 new institutional investments in for a total of 2,335,008 shares, while 25 institutional investors sold positions of 1,486,836 shares during the same period.