159,766 Shares in PennyMac Financial Services, Inc. $PFSI Bought by K2 Principal Fund L.P.

Key Points

• K2 Principal Fund bought 159,766 PennyMac Financial Services shares worth approximately $13.9 million, representing a 0.31% stake and 1.0% of K2’s portfolio. Institutional investors collectively own 57.87% of PFSI.
• Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $104.88 after several firms cut their targets. The stock recently traded at $75.39, near its 12-month low of $71.68.
• PennyMac missed quarterly earnings expectations, reporting $1.39 in EPS versus the $2.11 consensus estimate, although revenue rose 11.8% year over year. The company maintained a quarterly dividend of $0.30, equivalent to a 1.6% yield.

K2 Principal Fund L.P. purchased a new stake in PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 159,766 shares of the real estate investment trust's stock, valued at approximately $13,916,000. PennyMac Financial Services accounts for 1.0% of K2 Principal Fund L.P.'s investment portfolio, making the stock its 13th biggest position. K2 Principal Fund L.P. owned 0.31% of PennyMac Financial Services at the end of the most recent reporting period.

A number of other institutional investors also recently modified their holdings of PFSI. BlackRock Inc. bought a new position in shares of PennyMac Financial Services during the second quarter worth about $202,735,000. Deutsche Bank AG bought a new stake in PennyMac Financial Services in the 2nd quarter valued at approximately $2,732,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in PennyMac Financial Services in the 2nd quarter valued at approximately $25,000. Bank of New York Mellon Corp acquired a new position in PennyMac Financial Services during the 2nd quarter worth approximately $26,424,000. Finally, State of Wyoming acquired a new position in PennyMac Financial Services during the 2nd quarter worth approximately $459,000. 57.87% of the stock is currently owned by institutional investors.

Insider Activity at PennyMac Financial Services

In other news, CAO Gregory L. Hendry sold 2,943 shares of the stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $81.71, for a total value of $240,472.53. Following the transaction, the chief accounting officer directly owned 48,968 shares of the company's stock, valued at $4,001,175.28. This represents a 5.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 15.20% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the stock. Piper Sandler downgraded shares of PennyMac Financial Services from an "overweight" rating to a "neutral" rating and lowered their price objective for the company from $106.00 to $86.00 in a report on Thursday, July 30th. Barclays reduced their target price on shares of PennyMac Financial Services from $93.00 to $85.00 and set an "equal weight" rating for the company in a report on Thursday, July 30th. Stephens decreased their target price on shares of PennyMac Financial Services from $91.00 to $78.00 and set an "equal weight" rating for the company in a research report on Thursday, July 30th. Keefe, Bruyette & Woods lowered their price target on shares of PennyMac Financial Services from $108.00 to $100.00 and set an "outperform" rating on the stock in a research note on Friday, July 31st. Finally, Wall Street Zen cut shares of PennyMac Financial Services from a "hold" rating to a "sell" rating in a research report on Saturday, August 1st. Four investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $104.88.

PennyMac Financial Services Stock Performance

PFSI opened at $75.39 on Wednesday. PennyMac Financial Services, Inc. has a 12-month low of $71.68 and a 12-month high of $160.36. The stock has a market cap of $3.92 billion, a price-to-earnings ratio of 10.36, a PEG ratio of 0.73 and a beta of 1.45. The business has a 50 day moving average of $81.48 and a 200-day moving average of $86.83. The company has a quick ratio of 0.38, a current ratio of 0.38 and a debt-to-equity ratio of 3.22.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last issued its earnings results on Wednesday, July 29th. The real estate investment trust reported $1.39 EPS for the quarter, missing the consensus estimate of $2.11 by ($0.72). PennyMac Financial Services had a return on equity of 11.18% and a net margin of 17.74%.During the same period in the prior year, the company earned $2.54 EPS. The company's revenue was up 11.8% on a year-over-year basis. On average, equities research analysts expect that PennyMac Financial Services, Inc. will post 7.42 earnings per share for the current year.

PennyMac Financial Services Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Shareholders of record on Monday, August 17th will be issued a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 1.6%. The ex-dividend date is Monday, August 17th. PennyMac Financial Services's payout ratio is currently 16.48%.

PennyMac Financial Services Company Profile

PennyMac Financial Services, Inc NYSE: PFSI is a leading mortgage banking company based in Westlake Village, California. The firm operates through two primary business segments: Production and Mortgage Servicing Rights (MSR). In its Production segment, PennyMac originates residential mortgage loans through retail, wholesale and correspondent channels, focusing on both purchase and refinance transactions. The MSR segment involves the acquisition and servicing of mortgage loans, whereby the company earns fees for managing loan portfolios on behalf of investors.

Since its founding in 2008, PennyMac has grown through a combination of organic origination and strategic acquisition of servicing rights, positioning itself as one of the largest residential mortgage loan servicers in the United States.

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