Bank of America Corp DE Purchases 240,902 Shares of PennyMac Financial Services, Inc. $PFSI

Key Points

• Bank of America increased its PennyMac Financial Services position by 173.9% in the first quarter, purchasing 240,902 shares for a total holding of 379,429 shares valued at approximately $33.2 million.
• PennyMac reported quarterly EPS of $1.39, missing the $2.11 consensus estimate, although revenue increased 11.8% year over year. Analysts maintain a consensus “Hold” rating with an average price target of $104.88.
• The company declared a quarterly dividend of $0.30 per share, equivalent to $1.20 annually and a 1.5% yield; institutional investors own 57.87% of outstanding shares.

Bank of America Corp DE lifted its position in PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) by 173.9% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 379,429 shares of the real estate investment trust's stock after buying an additional 240,902 shares during the quarter. Bank of America Corp DE owned about 0.73% of PennyMac Financial Services worth $33,162,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also modified their holdings of PFSI. EverSource Wealth Advisors LLC bought a new position in PennyMac Financial Services in the 2nd quarter worth approximately $26,000. Strs Ohio acquired a new position in shares of PennyMac Financial Services during the first quarter worth approximately $30,000. Caitong International Asset Management Co. Ltd boosted its position in shares of PennyMac Financial Services by 7,600.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 231 shares of the real estate investment trust's stock valued at $30,000 after acquiring an additional 228 shares during the period. Los Angeles Capital Management LLC bought a new stake in shares of PennyMac Financial Services in the fourth quarter valued at approximately $31,000. Finally, Clearstead Advisors LLC grew its stake in shares of PennyMac Financial Services by 131.8% in the fourth quarter. Clearstead Advisors LLC now owns 503 shares of the real estate investment trust's stock worth $66,000 after acquiring an additional 286 shares during the last quarter. 57.87% of the stock is owned by institutional investors.

PennyMac Financial Services Price Performance

Shares of PennyMac Financial Services stock opened at $78.10 on Friday. The firm has a market cap of $4.06 billion, a P/E ratio of 10.73, a price-to-earnings-growth ratio of 0.73 and a beta of 1.45. The firm's 50-day simple moving average is $81.68 and its 200-day simple moving average is $88.30. PennyMac Financial Services, Inc. has a twelve month low of $71.68 and a twelve month high of $160.36. The company has a debt-to-equity ratio of 3.22, a quick ratio of 0.38 and a current ratio of 0.38.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The real estate investment trust reported $1.39 earnings per share (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%.The firm's quarterly revenue was up 11.8% compared to the same quarter last year. During the same quarter last year, the business posted $2.54 earnings per share. As a group, research analysts expect that PennyMac Financial Services, Inc. will post 7.42 EPS for the current fiscal year.

PennyMac Financial Services Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, August 27th. Stockholders 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 dividend yield of 1.5%. PennyMac Financial Services's dividend payout ratio is presently 16.48%.

Analyst Ratings Changes

Several equities analysts recently commented on the stock. Weiss Ratings reiterated a "sell (d+)" rating on shares of PennyMac Financial Services in a research note on Monday, August 3rd. Piper Sandler lowered shares of PennyMac Financial Services from an "overweight" rating to a "neutral" rating and decreased their price target for the stock from $106.00 to $86.00 in a research report on Thursday, July 30th. BTIG Research dropped their price objective on shares of PennyMac Financial Services from $105.00 to $90.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. Wells Fargo & Company cut their price objective on shares of PennyMac Financial Services from $100.00 to $95.00 and set an "overweight" rating for the company in a research report on Thursday, July 30th. Finally, Keefe, Bruyette & Woods reduced their target price on shares of PennyMac Financial Services from $108.00 to $100.00 and set an "outperform" rating for the company in a research note on Friday, July 31st. Four investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $104.88.

Insider Buying and Selling

In other PennyMac Financial Services news, CAO Gregory L. Hendry sold 2,177 shares of PennyMac Financial Services stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $86.89, for a total transaction of $189,159.53. Following the completion of the transaction, the chief accounting officer directly owned 48,968 shares of the company's stock, valued at approximately $4,254,829.52. This trade represents a 4.26% decrease in their ownership of the stock. The sale was disclosed in a legal filing 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.

About PennyMac Financial Services

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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