Nomura Holdings Reiterates a Buy Rating on PennyMac Financial

By Jason Carr

In a report released today, Brock Vandervliet from Nomura Holdings reiterated a Buy rating on PennyMac Financial (NYSE: PFSI), with a price target of $20. The company’s shares opened today at $17.55, close to its 52-week high of $18.13.

According to TipRanks.com, Vandervliet is a 4-star analyst with an average return of 5.7% and a 60.6% success rate. Vandervliet covers the Financial sector, focusing on stocks such as Chimera Investment Corp., American Capital Agency, and Altisource Residential.

Currently, the analyst consensus on PennyMac Financial is Moderate Buy and the average price target is $18.63, representing a 6.2% upside.

In a report released today, JMP Securities also reiterated a Buy rating on the stock.

Based on PennyMac Financial’s latest earnings report from June 30, the company posted quarterly revenue of $233.3M and quarterly net profit of $14.48M. In comparison, last year the company earned revenue of $210.1M and had a net profit of $12.68M.

Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is neutral on the stock. Earlier this month, Leon Cooperman, a Major Shareholder at PFSI sold 10,604 shares for a total of $183,119.

PennyMac Financial Services, Inc. is a financial services company with a comprehensive mortgage platform and integrated business focused on the production and servicing of U.S. residential mortgage loans and the management of investments related to the U.S. residential mortgage market. The company operates through two business segments: Mortgage Banking and Investment Management. The Mortgage Banking segment is comprised of three primary businesses: Correspondent Lending, Retail Lending and Loan Servicing. The Correspondent Lending business manages, on behalf of PennyMac Mortgage Investment Trust and for its own account, the acquisition of newly originated, prime credit quality, first-lien residential mortgage loans that have been underwritten to investor guidelines. The Retail Lending business originates new prime credit quality, first-lien residential conventional and government-insured mortgage loans on a national basis to allow customers to purchase or refinance their homes. The Loan Servicing business performs loan administration, collection, and default activities, including the collection and remittance of loan payments, responding to customer inquiries, accounting for principal and interest, holding custodial (impound) funds for the payment of property taxes and insurance premiums, counseling delinquent mortgagors, modifying loans and supervising foreclosures and its property dispositions. The Investment Management segment operates through its wholly-owned subsidiary, PNMAC Capital Management LLC. The PNMAC Capital Management LLC currently manages PennyMac Mortgage Investment Trust and the investment funds. PennyMac Financial Services was founded by Stanford L. Kurland on December 31, 2012 and is headquartered in Moorpark, CA.