Concentric Capital Strategies LP Acquires 69,858 Shares of PennyMac Financial Services, Inc. $PFSI

Key Points

• Concentric Capital Strategies LP boosted its stake in PennyMac Financial Services by 420.3% in the fourth quarter, buying 69,858 additional shares and bringing its total holding to 86,478 shares worth about $11.4 million.
• PennyMac reported Q1 earnings of $2.19 per share, slightly below analysts’ expectations, while revenue came in just under forecasts at $544.98 million. Despite the miss, revenue was up 26.5% year over year.
• The company paid a quarterly dividend of $0.30 per share, or $1.20 annually, for a yield of 1.5%. Meanwhile, analysts remain mixed, with a consensus rating of Hold and a consensus price target of $117.13.

Concentric Capital Strategies LP increased its holdings in PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) by 420.3% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 86,478 shares of the real estate investment trust's stock after buying an additional 69,858 shares during the period. Concentric Capital Strategies LP owned 0.17% of PennyMac Financial Services worth $11,401,000 as of its most recent SEC filing.

A number of other hedge funds have also bought and sold shares of PFSI. AQR Capital Management LLC boosted its holdings in shares of PennyMac Financial Services by 3.8% in the first quarter. AQR Capital Management LLC now owns 24,012 shares of the real estate investment trust's stock worth $2,404,000 after acquiring an additional 875 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in PennyMac Financial Services by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,923 shares of the real estate investment trust's stock worth $1,594,000 after purchasing an additional 706 shares during the period. Intech Investment Management LLC grew its holdings in PennyMac Financial Services by 5.8% during the 1st quarter. Intech Investment Management LLC now owns 15,382 shares of the real estate investment trust's stock valued at $1,540,000 after buying an additional 840 shares in the last quarter. Strs Ohio bought a new stake in shares of PennyMac Financial Services during the first quarter valued at about $30,000. Finally, Prudential Financial Inc. increased its position in shares of PennyMac Financial Services by 82.8% during the second quarter. Prudential Financial Inc. now owns 4,084 shares of the real estate investment trust's stock valued at $413,000 after buying an additional 1,850 shares during the period. 57.87% of the stock is currently owned by hedge funds and other institutional investors.

PennyMac Financial Services Stock Performance

Shares of NYSE PFSI opened at $81.12 on Thursday. The stock has a market cap of $4.21 billion, a price-to-earnings ratio of 8.62, a P/E/G ratio of 0.54 and a beta of 1.44. The company has a current ratio of 0.33, a quick ratio of 0.33 and a debt-to-equity ratio of 3.63. PennyMac Financial Services, Inc. has a 1-year low of $77.67 and a 1-year high of $160.36. The stock's 50-day moving average is $87.16 and its 200 day moving average is $104.46.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last issued its 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 analysts' expectations of $546.17 million. PennyMac Financial Services had a return on equity of 10.93% and a net margin of 23.47%.The firm's quarterly revenue was up 26.5% compared to the same quarter last year. During the same period in the prior year, the company earned $1.42 EPS. On average, sell-side analysts anticipate that PennyMac Financial Services, Inc. will post 10.68 EPS for the current fiscal year.

PennyMac Financial Services Announces Dividend

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

Insider Buying and Selling at PennyMac Financial Services

In other news, CFO Daniel Stanley Perotti sold 2,925 shares of PennyMac Financial Services stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $87.50, for a total value of $255,937.50. Following the transaction, the chief financial officer owned 210,625 shares in the company, valued at approximately $18,429,687.50. The trade was a 1.37% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Spector sold 10,000 shares of the stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $87.99, for a total value of $879,900.00. Following the sale, the chief executive officer owned 60,604 shares of the company's stock, valued at $5,332,545.96. This represents a 14.16% 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 22,925 shares of company stock valued at $2,064,138 over the last three months. 15.80% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. Piper Sandler decreased their target price on shares of PennyMac Financial Services from $122.00 to $112.00 and set an "overweight" rating on the stock in a report on Wednesday, May 6th. Stephens initiated coverage on PennyMac Financial Services in a research report on Friday, April 24th. They issued an "equal weight" rating and a $100.00 price objective on the stock. Weiss Ratings lowered PennyMac Financial Services from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Wednesday, May 6th. BTIG Research decreased their target price on PennyMac Financial Services from $150.00 to $105.00 and set a "buy" rating on the stock in a research note on Tuesday. Finally, Barclays dropped their price target on PennyMac Financial Services from $116.00 to $107.00 and set an "overweight" rating for the company in a research report on Monday, May 11th. Six equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, PennyMac Financial Services presently has a consensus rating of "Hold" and a consensus target price of $117.13.

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.

Want to see what other hedge funds are holding PFSI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.