209,900 Shares in PennyMac Financial Services, Inc. $PFSI Acquired by Kinetic Partners Management LP

Key Points

• Kinetic Partners Management LP acquired 209,900 shares of PennyMac Financial Services worth approximately $18.3 million, representing about 0.40% of the company. Institutional investors collectively own 57.87% of PFSI.
• Analyst sentiment is mixed: the consensus rating is “Hold” with an average price target of $104.88, though several firms recently lowered targets and Zacks Research downgraded the stock to “strong sell.”
• PennyMac reported quarterly EPS of $1.39, missing the $2.11 consensus estimate, while revenue rose 11.8% year over year. The company declared a quarterly dividend of $0.30 per share, implying a 1.6% annualized yield.

Kinetic Partners Management LP bought a new stake in PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund bought 209,900 shares of the real estate investment trust's stock, valued at approximately $18,282,000. Kinetic Partners Management LP owned about 0.40% of PennyMac Financial Services at the end of the most recent reporting period.

A number of other hedge funds have also modified their holdings of PFSI. Norges Bank acquired a new stake in PennyMac Financial Services in the 4th quarter valued at approximately $44,287,000. Dimensional Fund Advisors LP increased its holdings in PennyMac Financial Services by 7.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,916,271 shares of the real estate investment trust's stock worth $167,474,000 after purchasing an additional 126,902 shares during the period. Donald Smith & CO. Inc. acquired a new stake in PennyMac Financial Services in the second quarter valued at approximately $163,940,000. Y Intercept Hong Kong Ltd lifted its position in shares of PennyMac Financial Services by 210.4% during the 1st quarter. Y Intercept Hong Kong Ltd now owns 43,605 shares of the real estate investment trust's stock worth $3,811,000 after purchasing an additional 29,557 shares during the last quarter. Finally, Rubric Capital Management LP purchased a new stake in PennyMac Financial Services during the 1st quarter worth about $4,783,000. 57.87% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities analysts have issued reports on the stock. Zacks Research downgraded shares of PennyMac Financial Services from a "hold" rating to a "strong sell" rating in a research note on Friday, May 8th. Weiss Ratings restated a "sell (d+)" rating on shares of PennyMac Financial Services in a research report on Monday, August 3rd. Piper Sandler downgraded PennyMac Financial Services from an "overweight" rating to a "neutral" rating and reduced their target price for the company from $106.00 to $86.00 in a report on Thursday, July 30th. Keefe, Bruyette & Woods decreased their price target on 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, Wells Fargo & Company lowered their price objective on shares of PennyMac Financial Services from $100.00 to $95.00 and set an "overweight" rating on the stock in a research note on Thursday, July 30th. Four equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $104.88.

Insider Activity at PennyMac Financial Services

In other PennyMac Financial Services news, CAO Gregory L. Hendry sold 2,943 shares of the firm's stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $81.71, for a total transaction of $240,472.53. Following the completion of the transaction, the chief accounting officer directly owned 48,968 shares of the company's stock, valued at $4,001,175.28. This trade represents a 5.67% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 15.20% of the company's stock.

PennyMac Financial Services Stock Performance

PennyMac Financial Services stock opened at $74.15 on Wednesday. The stock has a fifty day moving average price of $80.87 and a 200 day moving average price of $85.74. The company has a current ratio of 0.38, a quick ratio of 0.38 and a debt-to-equity ratio of 3.22. PennyMac Financial Services, Inc. has a 52 week low of $71.68 and a 52 week high of $160.36. The firm has a market capitalization of $3.85 billion, a P/E ratio of 10.19, a PEG ratio of 0.71 and a beta of 1.45.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last issued its quarterly 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%.PennyMac Financial Services's quarterly revenue was up 11.8% on a year-over-year basis. During the same quarter last year, the business posted $2.54 EPS. Equities research analysts anticipate that PennyMac Financial Services, Inc. will post 7.36 earnings per share for the current year.

PennyMac Financial Services Announces Dividend

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

PennyMac Financial Services 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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