Pennymac Finl Svcs Stock Buy Hold or Sell Recommendation
| PFSI Stock | USD 106.87 0.51 0.48% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding PennyMac Finl Svcs is 'Hold'. The recommendation algorithm takes into account all of PennyMac Finl's available fundamental, technical, and predictive indicators you will find on this site.
Check out PennyMac Finl Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as PennyMac and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards PennyMac Finl Svcs. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state.
PennyMac |
Execute PennyMac Finl Buy or Sell Advice
The PennyMac recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on PennyMac Finl Svcs. Macroaxis does not own or have any residual interests in PennyMac Finl Svcs or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute PennyMac Finl's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
PennyMac Finl Trading Alerts and Improvement Suggestions
| PennyMac Finl Svcs generated a negative expected return over the last 90 days | |
| PennyMac Finl Svcs currently holds about 1.52 B in cash with (1.58 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 28.96. | |
| PennyMac Finl Svcs has a frail financial position based on the latest SEC disclosures | |
| Roughly 61.0% of the company shares are owned by institutional investors | |
| On 27th of November 2024 PennyMac Finl paid $ 0.3 per share dividend to its current shareholders | |
| Latest headline from zacks.com: Implied Volatility Surging for PennyMac Mortgage Investment Stock Options |
PennyMac Finl Returns Distribution Density
The distribution of PennyMac Finl's historical returns is an attempt to chart the uncertainty of PennyMac Finl's future price movements. The chart of the probability distribution of PennyMac Finl daily returns describes the distribution of returns around its average expected value. We use PennyMac Finl Svcs price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of PennyMac Finl returns is essential to provide solid investment advice for PennyMac Finl.
| Mean Return | 0.07 | Value At Risk | -2.17 | Potential Upside | 2.33 | Standard Deviation | 1.58 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of PennyMac Finl historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
PennyMac Stock Institutional Investors
| Shares | Geode Capital Management, Llc | 2024-09-30 | 647.8 K | Basswood Capital Management Llc | 2024-09-30 | 458.3 K | Charles Schwab Investment Management Inc | 2024-09-30 | 447.4 K | Northern Trust Corp | 2024-09-30 | 372.3 K | Norges Bank | 2024-06-30 | 362.1 K | American Century Companies Inc | 2024-09-30 | 341.9 K | Boston Partners Global Investors, Inc | 2024-09-30 | 331.1 K | Alyeska Investment Group, L.p. | 2024-09-30 | 329.3 K | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 321.2 K | Mfn Partners Management, Lp | 2024-06-30 | 4.5 M | T. Rowe Price Investment Management,inc. | 2024-09-30 | 4.5 M |
PennyMac Finl Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 32.7M | 344.2M | (192.7M) | 988.4M | (390.2M) | (370.7M) | |
| Free Cash Flow | (2.5B) | (6.3B) | 2.5B | 6.0B | (1.6B) | (1.5B) | |
| Depreciation | 609.0M | 37.9M | 42.9M | 50.2M | 70.0M | 66.5M | |
| Other Non Cash Items | (3.2B) | (6.7B) | 1.1B | 5.2B | (1.8B) | (1.7B) | |
| Dividends Paid | 9.7M | 30.9M | 52.9M | 54.6M | 41.4M | 43.5M | |
| Capital Expenditures | 263.0M | 84.2M | 56.9M | 83.1M | 36.2M | 34.4M | |
| Net Income | 393.0M | 1.6B | 1.0B | 475.5M | 144.7M | 137.4M | |
| End Period Cash Flow | 188.6M | 532.8M | 340.1M | 1.3B | 938.4M | 985.3M | |
| Investments | 409.4M | 972.5M | (426.1M) | (877.2M) | (616.0M) | (585.2M) | |
| Net Borrowings | 7.6M | 610.9M | 1.1B | 630.4M | 567.4M | 507.4M | |
| Change To Netincome | 53.2B | 65.9B | 92.7B | (21.9B) | (25.2B) | (23.9B) | |
| Change Receivables | (20.3M) | (48.3M) | 35.2M | 2.8M | 3.2M | 3.4M |
PennyMac Finl Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to PennyMac Finl or Financial Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that PennyMac Finl's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a PennyMac stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.0038 | |
β | Beta against Dow Jones | 0.56 | |
σ | Overall volatility | 1.55 | |
Ir | Information ratio | -0.03 |
PennyMac Finl Volatility Alert
PennyMac Finl Svcs has relatively low volatility with skewness of -0.19 and kurtosis of 0.13. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure PennyMac Finl's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact PennyMac Finl's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.PennyMac Finl Fundamentals Vs Peers
Comparing PennyMac Finl's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze PennyMac Finl's direct or indirect competition across all of the common fundamentals between PennyMac Finl and the related equities. This way, we can detect undervalued stocks with similar characteristics as PennyMac Finl or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of PennyMac Finl's fundamental indicators could also be used in its relative valuation, which is a method of valuing PennyMac Finl by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare PennyMac Finl to competition |
| Fundamentals | PennyMac Finl | Peer Average |
| Return On Equity | 0.0465 | -0.31 |
| Return On Asset | 0.0081 | -0.14 |
| Profit Margin | 0.06 % | (1.27) % |
| Operating Margin | 0.09 % | (5.51) % |
| Current Valuation | 22.16 B | 16.62 B |
| Shares Outstanding | 51.26 M | 571.82 M |
| Shares Owned By Insiders | 36.01 % | 10.09 % |
| Shares Owned By Institutions | 61.08 % | 39.21 % |
| Number Of Shares Shorted | 1.17 M | 4.71 M |
| Price To Earning | 2.74 X | 28.72 X |
| Price To Book | 1.46 X | 9.51 X |
| Price To Sales | 1.97 X | 11.42 X |
| Revenue | 1.4 B | 9.43 B |
| Gross Profit | 1.4 B | 27.38 B |
| EBITDA | 709.98 M | 3.9 B |
| Net Income | 144.66 M | 570.98 M |
| Cash And Equivalents | 1.52 B | 2.7 B |
| Cash Per Share | 28.96 X | 5.01 X |
| Total Debt | 13.49 B | 5.32 B |
| Debt To Equity | 2.73 % | 48.70 % |
| Current Ratio | 1.24 X | 2.16 X |
| Book Value Per Share | 72.95 X | 1.93 K |
| Cash Flow From Operations | (1.58 B) | 971.22 M |
| Short Ratio | 3.89 X | 4.00 X |
| Earnings Per Share | 3.18 X | 3.12 X |
| Price To Earnings To Growth | 4.67 X | 4.89 X |
| Target Price | 124.33 | |
| Number Of Employees | 4.31 K | 18.84 K |
| Beta | 1.79 | -0.15 |
| Market Capitalization | 5.48 B | 19.03 B |
| Total Asset | 18.84 B | 29.47 B |
| Retained Earnings | 3.51 B | 9.33 B |
| Working Capital | 5.78 B | 1.48 B |
Note: Disposition of 3032 shares by Gregory Hendry of PennyMac Finl at 17.52 subject to Rule 16b-3 [view details]
PennyMac Finl Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as PennyMac . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About PennyMac Finl Buy or Sell Advice
When is the right time to buy or sell PennyMac Finl Svcs? Buying financial instruments such as PennyMac Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Check out PennyMac Finl Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Is Commercial & Residential Mortgage Finance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of PennyMac Finl. If investors know PennyMac will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about PennyMac Finl listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.27) | Dividend Share 1 | Earnings Share 3.18 | Revenue Per Share 54.823 | Quarterly Revenue Growth 4.826 |
The market value of PennyMac Finl Svcs is measured differently than its book value, which is the value of PennyMac that is recorded on the company's balance sheet. Investors also form their own opinion of PennyMac Finl's value that differs from its market value or its book value, called intrinsic value, which is PennyMac Finl's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because PennyMac Finl's market value can be influenced by many factors that don't directly affect PennyMac Finl's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between PennyMac Finl's value and its price as these two are different measures arrived at by different means. Investors typically determine if PennyMac Finl is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PennyMac Finl's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.