PennyMac Financial Services Inc. [NYSE:PFSI] shares are showing an active tape with a current price of $65.29 on Friday.
PennyMac Financial Services Inc. is in the Financial sector under the Mortgage Finance industry. This week, we are watching the stock hit price per sales of 1.37 with an earning per share of 11.50.
For the year, the stock is trading 91.80% and the five-day change stands at 8.89%. As a point of reference, the S&P 500 is trading 0.87% YTD.
The Price is right
Holding a Market Cap of $4.43 billion, PennyMac Financial Services Inc. has seen a trading range over the last year of $13.14-$62.08.
For the last five days, PFSI is up from its last closing price. The average shares trading hands each day is 681.27K, with average 10-day volume coming in at 0.67 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for PFSI. When we apply the Elder Force Index to PennyMac Financial Services Inc., we are seeing an Elder Force Indicator number of 4854842.8.
Recent Performance
The recent performance of the stock is another area that can tell traders how to proceed. PFSI is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 5.70. Moreover, the company’s enterprise value has gone from $8.52B to $7.53B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, PFSI made a profit of 714.21 million. PennyMac Financial Services Inc. also saw quarter revenue growth year over year of 58.17%. In addition, the company has operating cash flow of -$997.58 million.
Technical Analysis
Looking at popular technical indicators, the company’s 5-day moving average is 61.21 compared to the 50-day moving average of 55.63. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. PFSI currently holds a 9-day RSI of 80.65%, while 100-day RSI stands at 63.39%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. PFSI’s 9-day MACD is 2.04 and the company’s 100-day MACD stands at 15.30.
Inside Moves
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 39.72% by insiders and 45.59% by institutions. Regarding institutional holdings, Price (T.Rowe) Associates Inc owns 9.63%, while the second top holder, Vanguard Group, Inc. (The), currently owns 5.49%.
Over the last six months, insiders have sold 10,000 with the most recent transaction from Walker David M, Chief Risk Officer, with a sell at price 60.58 per share.
Conclusion
Overall, the recommended rating for PFSI is Strong Buy. Currently, the company has 7 analysts watching the stock, and the average quarterly earnings estimate is 4.73. Quarterly revenue estimates are averaging 902.98M with the high estimate reaching 1.09B and the low at 660M.
To review, the current 1-year target estimate is sitting at 68.00, while the current price 65.29. Based on this, we expect the stock to rise considering the aforementioned fundamentals.
