Bank of America Corp DE Acquires Shares of 286,228 PennyMac Financial Services, Inc. $PFSI

Key Points

• Bank of America acquired 286,228 PennyMac Financial Services shares in the second quarter, worth approximately $24.9 million and representing about 0.55% of the company. Institutional investors collectively own 57.87% of PFSI.
• PFSI shares opened at $65.62, near their 52-week low of $65.03, after the company reported quarterly EPS of $1.39 versus the $2.11 consensus estimate and revenue below analyst expectations.
• Analysts have generally turned more cautious, lowering price targets and assigning the stock an average “Hold” rating with a consensus target of $104.88; PennyMac also maintains a $0.30 quarterly dividend, yielding about 1.8%.

Bank of America Corp DE bought a new stake in PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 286,228 shares of the real estate investment trust's stock, valued at approximately $24,930,000. Bank of America Corp DE owned about 0.55% of PennyMac Financial Services as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. The Manufacturers Life Insurance Company acquired a new position in shares of PennyMac Financial Services in the second quarter valued at approximately $1,713,000. Donald Smith & CO. Inc. acquired a new stake in shares of PennyMac Financial Services during the second quarter worth $163,940,000. Legal & General Group Plc acquired a new stake in shares of PennyMac Financial Services during the second quarter worth $2,250,000. BlackRock Inc. purchased a new position in PennyMac Financial Services in the 2nd quarter valued at $202,735,000. Finally, Norges Bank purchased a new position in PennyMac Financial Services in the 4th quarter valued at $44,287,000. 57.87% of the stock is owned by hedge funds and other institutional investors.

PennyMac Financial Services Stock Down 2.0%

Shares of NYSE PFSI opened at $65.62 on Thursday. 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, Inc. has a 52 week low of $65.03 and a 52 week high of $160.36. The firm has a 50-day moving average price of $75.45 and a 200 day moving average price of $82.44. The stock has a market capitalization of $3.41 billion, a price-to-earnings ratio of 9.01, a price-to-earnings-growth ratio of 0.63 and a beta of 1.44.

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 earnings per share for the quarter, missing the consensus estimate of $2.11 by ($0.72). The company had revenue of $496.96 million for the quarter, compared to analyst estimates of $571.60 million. PennyMac Financial Services had a return on equity of 11.18% and a net margin of 17.74%.The company's quarterly revenue was up 11.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.54 earnings per share. Equities research analysts anticipate that PennyMac Financial Services, Inc. will post 7.36 EPS for the current fiscal year.

PennyMac Financial Services Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Monday, August 17th were given a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date was Monday, August 17th. PennyMac Financial Services's payout ratio is presently 16.48%.

Analysts Set New Price Targets

A number of equities analysts have commented on the stock. BTIG Research cut their price objective on shares of PennyMac Financial Services from $105.00 to $90.00 and set a "buy" rating for the company in a research report on Thursday, July 30th. Weiss Ratings reissued a "sell (d+)" rating on shares of PennyMac Financial Services in a report on Monday, August 3rd. Barclays reduced their price objective on shares of PennyMac Financial Services from $93.00 to $85.00 and set an "equal weight" rating for the company in a research report on Thursday, July 30th. Piper Sandler lowered 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. Finally, Keefe, Bruyette & Woods dropped their target price on PennyMac Financial Services from $108.00 to $100.00 and set an "outperform" rating on the stock in a research report on Friday, July 31st. Four equities research 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. According to MarketBeat, PennyMac Financial Services has an average rating of "Hold" and an average target price of $104.88.

Insiders Place Their Bets

In other PennyMac Financial Services news, CAO Gregory Hendry sold 2,177 shares of the company's stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $86.89, for a total value of $189,159.53. Following the sale, the chief accounting officer owned 48,968 shares of the company's stock, valued at approximately $4,254,829.52. This represents a 4.26% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through 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.

About PennyMac Financial Services

PennyMac Financial Services, Inc NYSE: PFSI is a mortgage banking company that provides a range of residential lending and loan servicing services in the United States. The company operates through its subsidiaries and focuses primarily on the production and servicing of conventional and government-insured residential mortgage loans.

PennyMac's loan production business acquires, originates and refinances mortgage loans through correspondent, broker-direct and consumer-direct channels.

Want to see what other hedge funds are holding PFSI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.