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PennyMac Financial Services, Inc. (PFSI), 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. reported 2nd Quarter June 2020 earnings of $4.39 per share on revenue of $821.6 million. The consensus earnings estimate was $3.04 per share on revenue of $644.3 million. Revenue grew 171.2% on a year-over-year basis.
With a steady earnings per share growth, this stock should be a nice growth pick to add to your portfolio. Revenue growth year-to-date is 101% and should be a good indicator that the stock should move higher. Shares are getting ready to break out of its "bullish cup and handle" formation.
Entry Point: $57.50
Stop Loss: $54.65
Trading Range: $13.14 to $57.89
Target Price: $63.25
PFSI closed at $63.33
