In a report released yesterday, Michael Kaye from Wells Fargo maintained a Buy rating on PennyMac Financial, with a price target of $120.00.
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Michael Kaye has given his Buy rating due to a combination of factors that highlight the resilience and potential of PennyMac Financial. Despite a challenging environment characterized by volatile and high mortgage rates, PennyMac’s balanced business model stands out. The company’s servicing portfolio is particularly strong, with a growing portion of high note rate loans that are potential refinancing candidates when interest rates decline.
Furthermore, while the company reported an earnings per share miss in the second quarter, there are positive indicators for the future. The book value per share increased by 3.3%, and the return on equity guidance for the second half of 2025 is expected to be in the mid- to high teens. These factors, coupled with an increase in home inventory, suggest that PennyMac Financial is well-positioned to capitalize on future market opportunities.
In another report released today, Barclays also maintained a Buy rating on the stock with a $119.00 price target.
Based on the recent corporate insider activity of 82 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PFSI in relation to earlier this year.