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How to buy PennyMac Financial Services stock | $64.24

Own PennyMac Financial Services stock in just a few minutes.

Fact checked

PennyMac Financial Services, Inc is a mortgage finance business based in the US. PennyMac Financial Services shares (PFSI) are listed on the NYSE and all prices are listed in US Dollars. PennyMac Financial Services employs 6,019 staff and has a trailing 12-month revenue of around USD$4.1 billion.

How to buy shares in PennyMac Financial Services

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for PennyMac Financial Services. Find the stock by name or ticker symbol: PFSI. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until PennyMac Financial Services reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of USD$64.24, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of PennyMac Financial Services, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of PennyMac Financial Services. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

PennyMac Financial Services share price

Use our graph to track the performance of PFSI stocks over time.

PennyMac Financial Services shares at a glance

Information last updated 2020-12-31.
Latest market closeUSD$64.24
52-week rangeUSD$13.0052 - USD$70
50-day moving average USD$60.1932
200-day moving average USD$53.348
Wall St. target priceUSD$79.75
PE ratio 3.9015
Dividend yield USD$0.6 (0.92%)
Earnings per share (TTM) USD$16.796

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy PennyMac Financial Services stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

PennyMac Financial Services price performance over time

Historical closes compared with the close of $64.24 from 2020-12-18

1 week (2021-01-12) N/A
1 month (2020-12-23) -6.04%
3 months (2020-10-19) N/A
6 months (2020-07-19) N/A
1 year (2020-01-19) N/A
2 years (2019-01-19) N/A
3 years (2018-01-19) N/A
5 years (2016-01-19) N/A

Is PennyMac Financial Services under- or over-valued?

Valuing PennyMac Financial Services stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of PennyMac Financial Services's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

PennyMac Financial Services's P/E ratio

PennyMac Financial Services's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 4x. In other words, PennyMac Financial Services shares trade at around 4x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

PennyMac Financial Services's PEG ratio

PennyMac Financial Services's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 4.67. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into PennyMac Financial Services's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

PennyMac Financial Services financials

Revenue TTM USD$4.1 billion
Operating margin TTM 44.96%
Gross profit TTM USD$1.8 billion
Return on assets TTM 6.65%
Return on equity TTM 54.65%
Profit margin 33.15%
Book value $41.672
Market capitalisation USD$4.7 billion

TTM: trailing 12 months

Shorting PennyMac Financial Services shares

There are currently 3.0 million PennyMac Financial Services shares held short by investors – that's known as PennyMac Financial Services's "short interest". This figure is 8.3% up from 2.8 million last month.

There are a few different ways that this level of interest in shorting PennyMac Financial Services shares can be evaluated.

PennyMac Financial Services's "short interest ratio" (SIR)

PennyMac Financial Services's "short interest ratio" (SIR) is the quantity of PennyMac Financial Services shares currently shorted divided by the average quantity of PennyMac Financial Services shares traded daily (recently around 699936.17511521). PennyMac Financial Services's SIR currently stands at 4.34. In other words for every 100,000 PennyMac Financial Services shares traded daily on the market, roughly 4340 shares are currently held short.

However PennyMac Financial Services's short interest can also be evaluated against the total number of PennyMac Financial Services shares, or, against the total number of tradable PennyMac Financial Services shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case PennyMac Financial Services's short interest could be expressed as 0.04% of the outstanding shares (for every 100,000 PennyMac Financial Services shares in existence, roughly 40 shares are currently held short) or 0.0982% of the tradable shares (for every 100,000 tradable PennyMac Financial Services shares, roughly 98 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against PennyMac Financial Services.

Find out more about how you can short PennyMac Financial Services stock.

PennyMac Financial Services share dividends

3%

Dividend payout ratio: 3.17% of net profits

Recently PennyMac Financial Services has paid out, on average, around 3.17% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0.92% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), PennyMac Financial Services shareholders could enjoy a 0.92% return on their shares, in the form of dividend payments. In PennyMac Financial Services's case, that would currently equate to about $0.6 per share.

While PennyMac Financial Services's payout ratio might seem low, this can signify that PennyMac Financial Services is investing more in its future growth.

PennyMac Financial Services's most recent dividend payout was on 25 November 2020. The latest dividend was paid out to all shareholders who bought their shares by 13 November 2020 (the "ex-dividend date").

PennyMac Financial Services share price volatility

Over the last 12 months, PennyMac Financial Services's shares have ranged in value from as little as $13.0052 up to $70. A popular way to gauge a stock's volatility is its "beta".

PFSI.US volatility(beta: 1.2)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while PennyMac Financial Services's is 1.2042. This would suggest that PennyMac Financial Services's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).

PennyMac Financial Services overview

PennyMac Financial Services, Inc., through its subsidiaries, engages in the mortgage banking and investment management activities in the United States. It operates through three segments: Loan Production, Loan Servicing, and Investment Management. The Loan Production segment is involved in the origination, acquisition, and sale of mortgage loans. This segment originates first-lien residential conventional, government-insured or guaranteed mortgage loans, and home equity loans. The Loan Servicing segment engages in the servicing of newly originated mortgage loans, and execution and management of early buyout transactions and servicing of loans. It performs loan administration, collection, and default management activities, including the collection and remittance of loan payments; response to customer inquiries; accounting for principal and interest; holding custodial funds for the payment of property taxes and insurance premiums; counseling delinquent borrowers; and supervising foreclosures and property dispositions. This segment also services conventional and government-insured or guaranteed mortgage loans, and home equity loans; and distressed mortgage loans that have been acquired as investments by its advised entities. The Investment Management segment is involved in sourcing, performing diligence, bidding, and closing investment asset acquisitions; managing correspondent production activities for PennyMac Mortgage Investment Trust; and managing acquired assets. PennyMac Financial Services, Inc. was founded in 2008 and is headquartered in Westlake Village, California.

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