BlackRock Inc. Makes New Investment in PennyMac Financial Services, Inc. $PFSI

Key Points

• BlackRock acquired 2.33 million shares of PennyMac Financial Services in the second quarter, worth approximately $202.7 million and representing a 4.48% stake. Institutional investors collectively own 57.87% of the company.
• Analyst sentiment is mixed, with four Buy, four Hold, and two Sell ratings. MarketBeat reports a consensus “Hold” rating and an average price target of $104.88, despite several recent target-price cuts.
• PFSI reported quarterly EPS of $1.39, missing the $2.11 consensus estimate, while revenue increased 11.8% year over year. The company also paid a quarterly dividend of $0.30, equivalent to a 1.6% annualized yield.

BlackRock Inc. 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 disclosure with the Securities and Exchange Commission (SEC). The firm acquired 2,327,613 shares of the real estate investment trust's stock, valued at approximately $202,735,000. BlackRock Inc. owned approximately 4.48% of PennyMac Financial Services as of its most recent SEC filing.

Other hedge funds also recently made changes to their positions in the company. Norges Bank purchased a new stake in PennyMac Financial Services during the 4th quarter worth approximately $44,287,000. Dimensional Fund Advisors LP boosted its stake in shares of 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 valued at $167,474,000 after buying an additional 126,902 shares during the last quarter. Y Intercept Hong Kong Ltd boosted its stake 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 valued at $3,811,000 after buying an additional 29,557 shares during the last quarter. Rubric Capital Management LP acquired a new stake in shares of PennyMac Financial Services during the first quarter worth approximately $4,783,000. Finally, Helix Partners Management LP acquired a new stake in shares of PennyMac Financial Services during the first quarter worth approximately $6,905,000. Hedge funds and other institutional investors own 57.87% of the company's stock.

Insider Activity at PennyMac Financial Services

In other news, CAO Gregory L. Hendry sold 2,943 shares of the stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $81.71, for a total transaction of $240,472.53. Following the sale, the chief accounting officer directly owned 48,968 shares in the company, valued at approximately $4,001,175.28. This represents a 5.67% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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.

Analyst Upgrades and Downgrades

PFSI has been the topic of a number of research analyst reports. Weiss Ratings reiterated a "sell (d+)" rating on shares of PennyMac Financial Services in a research note on Monday, August 3rd. Wells Fargo & Company dropped their target price 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. Wall Street Zen cut shares of PennyMac Financial Services from a "hold" rating to a "sell" rating in a research report on Saturday, August 1st. BTIG Research decreased their price target on PennyMac Financial Services from $105.00 to $90.00 and set a "buy" rating for the company in a research note on Thursday, July 30th. Finally, 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. Four 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, the company has a consensus rating of "Hold" and an average target price of $104.88.

PennyMac Financial Services Stock Up 0.8%

Shares of NYSE:PFSI opened at $73.52 on Friday. The stock has a market capitalization of $3.82 billion, a price-to-earnings ratio of 10.10, a price-to-earnings-growth ratio of 0.69 and a beta of 1.45. PennyMac Financial Services, Inc. has a 1-year low of $71.68 and a 1-year high of $160.36. The company's fifty day moving average is $80.52 and its two-hundred day moving average is $85.41. 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 EPS for the quarter, missing the consensus estimate of $2.11 by ($0.72). PennyMac Financial Services had a net margin of 17.74% and a return on equity of 11.18%. During the same quarter last year, the business earned $2.54 earnings per share. The business's revenue was up 11.8% on a year-over-year basis. Equities analysts anticipate that PennyMac Financial Services, Inc. will post 7.36 EPS for the current year.

PennyMac Financial Services Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Monday, August 17th were paid a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date was Monday, August 17th. PennyMac Financial Services's payout ratio is presently 16.48%.

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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