Basswood Capital Management L.L.C. Trims Holdings in PennyMac Financial Services, Inc. $PFSI

Key Points

• Basswood Capital Management trimmed its PennyMac Financial Services stake by 4.8% in the fourth quarter, selling 27,617 shares. The fund still held 550,927 shares worth about $72.6 million, making PFSI its 7th-largest holding.
• PennyMac’s latest results were mixed: the company reported $2.19 EPS, slightly below estimates, while revenue of $544.98 million also came in just under forecasts. However, revenue still rose 26.5% year over year.
• Analysts remain cautious overall after recent price-target cuts from Barclays, Keefe Bruyette & Woods, and Wells Fargo. The stock currently has a consensus rating of Hold with a consensus target price of $122.75.

Basswood Capital Management L.L.C. decreased its position in shares of PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) by 4.8% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 550,927 shares of the real estate investment trust's stock after selling 27,617 shares during the quarter. PennyMac Financial Services comprises approximately 2.9% of Basswood Capital Management L.L.C.'s investment portfolio, making the stock its 7th biggest holding. Basswood Capital Management L.L.C. owned about 1.06% of PennyMac Financial Services worth $72,634,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Los Angeles Capital Management LLC bought a new position in PennyMac Financial Services during the 4th quarter worth approximately $31,000. EverSource Wealth Advisors LLC bought a new position in PennyMac Financial Services during the 2nd quarter worth approximately $26,000. GAMMA Investing LLC boosted its stake in PennyMac Financial Services by 97.3% during the 4th quarter. GAMMA Investing LLC now owns 288 shares of the real estate investment trust's stock worth $38,000 after acquiring an additional 142 shares during the last quarter. Strs Ohio bought a new position in PennyMac Financial Services during the 1st quarter worth approximately $30,000. Finally, Clearstead Advisors LLC boosted its stake in PennyMac Financial Services by 131.8% during the 4th 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. Institutional investors own 57.87% of the company's stock.

PennyMac Financial Services Stock Performance

Shares of PFSI stock opened at $81.54 on Friday. The company has a debt-to-equity ratio of 3.63, a quick ratio of 0.33 and a current ratio of 0.33. The company has a market capitalization of $4.23 billion, a P/E ratio of 8.66, a price-to-earnings-growth ratio of 0.53 and a beta of 1.44. The company's 50 day moving average price is $87.63 and its two-hundred day moving average price is $105.73. PennyMac Financial Services, Inc. has a 52 week low of $77.67 and a 52 week high of $160.36.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last announced its earnings results on Tuesday, May 5th. The real estate investment trust reported $2.19 EPS for the quarter, missing the consensus estimate of $2.22 by ($0.03). The company had revenue of $544.98 million for the quarter, compared to analyst estimates of $546.17 million. PennyMac Financial Services had a return on equity of 10.93% and a net margin of 23.47%.The business's quarterly revenue was up 26.5% on a year-over-year basis. During the same quarter last year, the business posted $1.42 earnings per share. On average, analysts expect that PennyMac Financial Services, Inc. will post 10.68 earnings per share for the current fiscal year.

PennyMac Financial Services Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, May 28th. Shareholders of record on Monday, May 18th were issued a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 1.5%. The ex-dividend date was Monday, May 18th. PennyMac Financial Services's dividend payout ratio (DPR) is 12.75%.

Insider Activity at PennyMac Financial Services

In other news, CFO Daniel Stanley Perotti sold 2,925 shares of PennyMac Financial Services stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $87.50, for a total value of $255,937.50. Following the sale, the chief financial officer directly owned 210,625 shares in the company, valued at $18,429,687.50. This trade represents a 1.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed 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. Also, CEO David Spector sold 10,000 shares of PennyMac Financial Services stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $87.99, for a total transaction of $879,900.00. Following the completion of the sale, the chief executive officer owned 60,604 shares in the company, valued at $5,332,545.96. This trade represents a 14.16% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 22,925 shares of company stock worth $2,064,138 over the last 90 days. Corporate insiders own 15.80% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the stock. Barclays reduced their price objective on shares of PennyMac Financial Services from $116.00 to $107.00 and set an "overweight" rating on the stock in a research note on Monday, May 11th. Keefe, Bruyette & Woods reduced their price objective on shares of PennyMac Financial Services from $115.00 to $108.00 and set an "outperform" rating on the stock in a research note on Friday, May 8th. Wells Fargo & Company reduced their price objective on shares of PennyMac Financial Services from $110.00 to $100.00 and set an "overweight" rating on the stock in a research note on Wednesday, May 6th. Weiss Ratings lowered shares of PennyMac Financial Services from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Wednesday, May 6th. Finally, Stephens assumed coverage on shares of PennyMac Financial Services in a research note on Friday, April 24th. They set an "equal weight" rating and a $100.00 price objective on the stock. Six analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, PennyMac Financial Services presently has a consensus rating of "Hold" and a consensus target price of $122.75.

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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