Basswood Capital Management L.L.C. Invests $16.75 Million in PennyMac Financial Services, Inc. $PFSI

Key Points

• Basswood Capital Management acquired 192,334 shares of PennyMac Financial Services worth approximately $16.75 million, giving it a 0.37% stake. Institutional investors collectively own 57.87% of PFSI.
• Analyst sentiment is mixed, with four Buy, four Hold, and two Sell ratings; the consensus rating is Hold with a $104.88 price target. Recent firms lowered their price targets amid weaker expectations.
• PFSI reported quarterly earnings of $1.39 per share, missing the $2.11 consensus estimate, while revenue rose 11.8% year over year. The company declared a $0.30 quarterly dividend, equivalent to a 1.6% annualized yield.

Basswood Capital Management L.L.C. acquired a new stake in PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 192,334 shares of the real estate investment trust's stock, valued at approximately $16,752,000. Basswood Capital Management L.L.C. owned 0.37% of PennyMac Financial Services as of its most recent SEC filing.

Several other large investors have also bought and sold shares of PFSI. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in PennyMac Financial Services by 0.7% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 16,034 shares of the real estate investment trust's stock valued at $1,598,000 after acquiring an additional 111 shares during the last quarter. Sei Investments Co. grew its stake in shares of PennyMac Financial Services by 0.7% in the 3rd quarter. Sei Investments Co. now owns 22,145 shares of the real estate investment trust's stock worth $2,743,000 after purchasing an additional 146 shares during the last quarter. CANADA LIFE ASSURANCE Co grew its stake in shares of PennyMac Financial Services by 1.0% in the 3rd quarter. CANADA LIFE ASSURANCE Co now owns 16,236 shares of the real estate investment trust's stock worth $2,026,000 after purchasing an additional 163 shares during the last quarter. Cerity Partners LLC raised its holdings in shares of PennyMac Financial Services by 7.3% in the 4th quarter. Cerity Partners LLC now owns 2,399 shares of the real estate investment trust's stock worth $316,000 after purchasing an additional 164 shares in the last quarter. Finally, Vanguard Personalized Indexing Management LLC raised its holdings in shares of PennyMac Financial Services by 4.4% in the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 4,619 shares of the real estate investment trust's stock worth $609,000 after purchasing an additional 196 shares in the last quarter. Institutional investors own 57.87% of the company's stock.

Wall Street Analyst Weigh In

PFSI has been the subject of a number of research reports. Wall Street Zen cut shares of PennyMac Financial Services from a "hold" rating to a "sell" rating in a report on Saturday, August 1st. BTIG Research dropped their price target on PennyMac Financial Services from $105.00 to $90.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. Stephens cut their price objective on 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 reduced their price objective on 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. Finally, Piper Sandler lowered PennyMac Financial Services from an "overweight" rating to a "neutral" rating and reduced their price objective for the stock from $106.00 to $86.00 in a research note on Thursday, July 30th. Four equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, PennyMac Financial Services currently has an average rating of "Hold" and a consensus price target of $104.88.

PennyMac Financial Services Price Performance

PFSI stock opened at $72.89 on Thursday. 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 one year low of $71.68 and a one year high of $160.36. The firm has a market capitalization of $3.79 billion, a PE ratio of 10.01, a P/E/G ratio of 0.70 and a beta of 1.45. The firm has a 50-day moving average of $80.71 and a two-hundred day moving average of $85.57.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last released 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). PennyMac Financial Services had a return on equity of 11.18% and a net margin of 17.74%.During the same quarter in the previous year, the company earned $2.54 earnings per share. The firm's revenue for the quarter was up 11.8% compared to the same quarter last year. On average, analysts forecast that PennyMac Financial Services, Inc. will post 7.36 earnings per share for the current year.

PennyMac Financial Services Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Investors of record on Monday, August 17th will be paid 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 (DPR) is currently 16.48%.

Insiders Place Their Bets

In other PennyMac Financial Services news, CAO Gregory L. Hendry sold 2,943 shares of PennyMac Financial Services stock in a transaction that occurred 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 transaction, the chief accounting officer directly owned 48,968 shares in the company, valued at approximately $4,001,175.28. The trade was a 5.67% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 15.20% of the company's stock.

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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