Conversant Capital LLC Has $24.44 Million Position in PennyMac Financial Services, Inc. $PFSI

Key Points

• Conversant Capital LLC increased its stake in PennyMac Financial Services, Inc. by 25.1% during the first quarter, now holding approximately $24.44 million worth of shares.
• PennyMac Financial Services recently reported earnings per share of $1.02, significantly missing estimates, and had quarterly revenue of $444.73 million.
• The company announced a quarterly dividend of $0.30, reflecting an annualized yield of 1.1%, with a current payout ratio of 16.64%.

Conversant Capital LLC grew its holdings in PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) by 25.1% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 244,150 shares of the real estate investment trust's stock after purchasing an additional 49,000 shares during the period. PennyMac Financial Services comprises approximately 4.0% of Conversant Capital LLC's investment portfolio, making the stock its 7th biggest holding. Conversant Capital LLC owned approximately 0.47% of PennyMac Financial Services worth $24,442,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. CWM LLC increased its holdings in PennyMac Financial Services by 71.5% during the first quarter. CWM LLC now owns 271 shares of the real estate investment trust's stock worth $27,000 after buying an additional 113 shares during the last quarter. Aquatic Capital Management LLC acquired a new position in PennyMac Financial Services during the fourth quarter worth $71,000. Xponance Inc. acquired a new position in PennyMac Financial Services during the first quarter worth $202,000. Hohimer Wealth Management LLC increased its holdings in PennyMac Financial Services by 5.4% during the first quarter. Hohimer Wealth Management LLC now owns 2,351 shares of the real estate investment trust's stock worth $235,000 after buying an additional 121 shares during the last quarter. Finally, AlphaQuest LLC increased its holdings in PennyMac Financial Services by 4.4% during the first quarter. AlphaQuest LLC now owns 2,587 shares of the real estate investment trust's stock worth $259,000 after buying an additional 110 shares during the last quarter. 57.87% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In related news, Director Joseph F. Mazzella sold 7,107 shares of the company's stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $108.16, for a total transaction of $768,693.12. Following the completion of the sale, the director owned 86,050 shares of the company's stock, valued at $9,307,168. This represents a 7.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Derek Stark sold 4,750 shares of the company's stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $109.56, for a total transaction of $520,410.00. Following the sale, the insider directly owned 20,621 shares of the company's stock, valued at $2,259,236.76. This represents a 18.72% decrease in their position. The disclosure for this sale can be found here. Insiders sold 26,857 shares of company stock valued at $2,813,253 over the last quarter. 15.80% of the stock is owned by company insiders.

PennyMac Financial Services Stock Performance

Shares of PennyMac Financial Services stock traded up $2.78 during trading on Wednesday, reaching $112.11. The company's stock had a trading volume of 158,033 shares, compared to its average volume of 376,353. The business's 50-day moving average price is $101.76 and its 200-day moving average price is $99.26. The firm has a market cap of $5.80 billion, a PE ratio of 15.55 and a beta of 1.51. PennyMac Financial Services, Inc. has a 52 week low of $85.74 and a 52 week high of $119.13. The company has a quick ratio of 0.34, a current ratio of 0.34 and a debt-to-equity ratio of 3.03.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last announced its earnings results on Tuesday, July 22nd. The real estate investment trust reported $1.02 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $3.01 by ($1.99). The business had revenue of $444.73 million during the quarter, compared to the consensus estimate of $547.44 million. PennyMac Financial Services had a net margin of 22.00% and a return on equity of 12.18%. The company's revenue was up 9.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.85 EPS. Equities analysts forecast that PennyMac Financial Services, Inc. will post 13.77 earnings per share for the current year.

PennyMac Financial Services Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Wednesday, August 13th were given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend was Wednesday, August 13th. PennyMac Financial Services's payout ratio is presently 16.64%.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the stock. Barclays decreased their price objective on shares of PennyMac Financial Services from $124.00 to $119.00 and set an "overweight" rating on the stock in a report on Tuesday, July 8th. UBS Group decreased their price objective on shares of PennyMac Financial Services from $115.00 to $110.00 and set a "neutral" rating on the stock in a report on Thursday, July 24th. Piper Sandler decreased their price objective on shares of PennyMac Financial Services from $125.00 to $121.00 and set an "overweight" rating on the stock in a report on Wednesday, July 23rd. Keefe, Bruyette & Woods upped their price objective on shares of PennyMac Financial Services from $117.00 to $121.00 and gave the company an "outperform" rating in a report on Wednesday. Finally, Wells Fargo & Company assumed coverage on shares of PennyMac Financial Services in a report on Monday, August 25th. They issued an "overweight" rating and a $115.00 price objective on the stock. Five research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $119.33.

PennyMac Financial Services Company Profile

PennyMac Financial Services, Inc, through its subsidiaries, engages in the mortgage banking and investment management activities in the United States. The company operates through three segments: Production, Servicing, and Investment Management. The Production segment is involved in the origination, acquisition, and sale of loans.