PennyMac Q2 profit sinks 84% as higher rates reduce loan origination
PFSI•Outlook and analyst view
PennyMac expects adjusted ROEs to remain in the high single digits through 2026 because of a smaller projected origination market due to higher interest rates.
The current average analyst rating on the shares is buy, with 5 strong buy or buy recommendations, 4 hold ratings and no sell or strong sell ratings. The average consensus recommendation for the banks peer group is buy.
Wall Street's median 12-month price target for PennyMac Financial Services Inc is $105.50, about 23.1% above its July 28 closing price of $85.70. The stock recently traded at 7 times the next 12-month earnings, versus a P/E of 7 three months ago.
Q2 profit falls as higher rates reduce originations
PennyMac Financial Services said second-quarter adjusted pretax profit missed analyst expectations, while net income fell 84% year over year as higher interest rates weighed on results.
The U.S. mortgage lender maintained its quarterly dividend at $0.30 per share.
Key details
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