BW Gestao de Investimentos Ltda. Invests $11.87 Million in PennyMac Financial Services, Inc. $PFSI

Key Points

• BW Gestao de Investimentos Ltda. opened a new position in PennyMac Financial Services in the fourth quarter, buying 90,000 shares valued at about $11.87 million. The stake represented roughly 0.17% of the company.
• Other institutional investors also added to PFSI, and 57.87% of the stock is now owned by institutions. Several firms made large purchases, including 140 Summer Partners LP and Norges Bank.
• PennyMac Financial Services reported Q1 EPS of $2.19, slightly below expectations, while revenue rose 26.5% year over year. The company also paid a quarterly dividend of $0.30 per share, for an annualized yield of about 1.5%.

BW Gestao de Investimentos Ltda. purchased a new position in shares of PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 90,000 shares of the real estate investment trust's stock, valued at approximately $11,866,000. BW Gestao de Investimentos Ltda. owned 0.17% of PennyMac Financial Services at the end of the most recent reporting period.

A number of other hedge funds have also modified their holdings of PFSI. 140 Summer Partners LP bought a new position in shares of PennyMac Financial Services during the third quarter worth about $55,268,000. Norges Bank bought a new position in shares of PennyMac Financial Services during the fourth quarter worth about $44,287,000. Two Sigma Investments LP grew its holdings in shares of PennyMac Financial Services by 1,148.7% during the third quarter. Two Sigma Investments LP now owns 310,919 shares of the real estate investment trust's stock worth $38,517,000 after buying an additional 286,019 shares in the last quarter. Holocene Advisors LP grew its holdings in shares of PennyMac Financial Services by 2,379.5% during the third quarter. Holocene Advisors LP now owns 245,268 shares of the real estate investment trust's stock worth $30,384,000 after buying an additional 235,376 shares in the last quarter. Finally, Invesco Ltd. grew its holdings in shares of PennyMac Financial Services by 18.3% during the third quarter. Invesco Ltd. now owns 1,463,096 shares of the real estate investment trust's stock worth $181,248,000 after buying an additional 226,581 shares in the last quarter. 57.87% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the company. Zacks Research downgraded PennyMac Financial Services from a "hold" rating to a "strong sell" rating in a research note on Friday, May 8th. Barclays decreased their price target on PennyMac Financial Services from $116.00 to $107.00 and set an "overweight" rating for the company in a research note on Monday, May 11th. Wells Fargo & Company decreased their price target on PennyMac Financial Services from $110.00 to $100.00 and set an "overweight" rating for the company in a research note on Wednesday, May 6th. Stephens assumed coverage on PennyMac Financial Services in a research note on Friday, April 24th. They issued an "equal weight" rating and a $100.00 price target for the company. Finally, Piper Sandler decreased their price target on PennyMac Financial Services from $122.00 to $112.00 and set an "overweight" rating for the company in a research note on Wednesday, May 6th. Six analysts have rated the stock with a Buy rating, two have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $122.75.

PennyMac Financial Services Price Performance

PennyMac Financial Services stock opened at $82.40 on Tuesday. PennyMac Financial Services, Inc. has a 12 month low of $82.24 and a 12 month high of $160.36. The stock's 50 day moving average is $88.47 and its 200-day moving average is $108.42. The company has a current ratio of 0.33, a quick ratio of 0.33 and a debt-to-equity ratio of 3.63. The company has a market capitalization of $4.28 billion, a price-to-earnings ratio of 8.76, a PEG ratio of 0.55 and a beta of 1.44.

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

PennyMac Financial Services Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, May 28th. Investors of record on Monday, May 18th were paid a $0.30 dividend. The ex-dividend date was Monday, May 18th. This represents a $1.20 annualized dividend and a yield of 1.5%. PennyMac Financial Services's payout ratio is 12.75%.

Insider Buying and Selling at PennyMac Financial Services

In related news, CEO David Spector sold 10,000 shares of the business's stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $87.99, for a total value of $879,900.00. Following the completion of the sale, the chief executive officer directly owned 60,604 shares in the company, valued at $5,332,545.96. The trade was a 14.16% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel Stanley Perotti sold 2,925 shares of the business's stock in a transaction 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 completion of the sale, the chief financial officer owned 210,625 shares of the company's stock, valued at $18,429,687.50. This trade represents a 1.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 45,361 shares of company stock valued at $4,002,384 over the last 90 days. 15.80% of the stock is currently owned by corporate insiders.

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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