Corient Private Wealth LP Acquires 24,296 Shares of PennyMac Financial Services, Inc. $PFSI

Key Points

• Corient Private Wealth LP increased its PennyMac Financial Services stake by 1,030.8% in the second quarter, buying 24,296 additional shares and ending with a position worth approximately $2.32 million.
• Institutional interest expanded significantly, with MFN Partners, BlackRock, Donald Smith & Co., Norges Bank, and Bank of New York Mellon initiating or adding positions; institutions now own 57.87% of PFSI.
• Analyst sentiment is mixed, with a consensus “Hold” rating and $104.88 target price, while recent results missed expectations. PFSI opened at $66.97, near its 52-week low, and the company maintains a $0.30 quarterly dividend.

Corient Private Wealth LP increased its holdings in shares of PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) by 1,030.8% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 26,653 shares of the real estate investment trust's stock after purchasing an additional 24,296 shares during the period. Corient Private Wealth LP owned approximately 0.05% of PennyMac Financial Services worth $2,321,000 at the end of the most recent quarter.

A number of other hedge funds have also added to or reduced their stakes in the business. MFN Partners Management LP acquired a new position in shares of PennyMac Financial Services during the 2nd quarter valued at $394,719,083. BlackRock Inc. bought a new stake in PennyMac Financial Services in the second quarter valued at $202,735,000. Donald Smith & CO. Inc. acquired a new position in shares of PennyMac Financial Services during the second quarter valued at about $163,940,000. Norges Bank acquired a new position in shares of PennyMac Financial Services during the fourth quarter valued at about $44,287,000. Finally, Bank of New York Mellon Corp bought a new position in shares of PennyMac Financial Services during the 2nd quarter worth about $26,424,000. 57.87% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of brokerages have commented on PFSI. BTIG Research reduced their price objective 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. Keefe, Bruyette & Woods lowered their target price on PennyMac Financial Services from $108.00 to $100.00 and set an "outperform" rating on the stock in a research report on Friday, July 31st. Stephens cut their target price on PennyMac Financial Services from $91.00 to $78.00 and set an "equal weight" rating on the stock in a report on Thursday, July 30th. Wall Street Zen downgraded shares of PennyMac Financial Services from a "hold" rating to a "sell" rating in a research report on Saturday, August 1st. Finally, Weiss Ratings restated a "sell (d+)" rating on shares of PennyMac Financial Services in a research note on Monday, August 3rd. Four investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $104.88.

PennyMac Financial Services Stock Performance

Shares of PFSI stock opened at $66.97 on Wednesday. The firm has a 50-day moving average of $75.84 and a 200-day moving average of $82.60. The company has a market cap of $3.48 billion, a P/E ratio of 9.20, a P/E/G ratio of 0.63 and a beta of 1.44. The company has a debt-to-equity ratio of 3.22, a current ratio of 0.38 and a quick ratio of 0.38. PennyMac Financial Services, Inc. has a one year low of $65.03 and a one year high of $160.36.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The real estate investment trust reported $1.39 earnings per share for the quarter, missing the consensus estimate of $2.11 by ($0.72). PennyMac Financial Services had a return on equity of 11.18% and a net margin of 17.74%.The firm had revenue of $496.96 million for the quarter, compared to analysts' expectations of $571.60 million. During the same quarter last year, the firm posted $2.54 earnings per share. The firm's revenue for the quarter was up 11.8% compared to the same quarter last year. Equities research analysts forecast that PennyMac Financial Services, Inc. will post 7.36 EPS for the current fiscal year.

PennyMac Financial Services Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, August 27th. Stockholders of record on Monday, August 17th were issued a $0.30 dividend. The ex-dividend date of this dividend was Monday, August 17th. This represents a $1.20 annualized dividend and a dividend yield of 1.8%. PennyMac Financial Services's dividend payout ratio is currently 16.48%.

Insider Activity

In related news, CAO Gregory Hendry sold 2,177 shares of the stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $86.89, for a total transaction of $189,159.53. Following the completion of the sale, the chief accounting officer directly owned 48,968 shares of the company's stock, valued at approximately $4,254,829.52. This trade represents a 4.26% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 15.20% of the stock is currently owned by corporate insiders.

PennyMac Financial Services Profile

PennyMac Financial Services, Inc NYSE: PFSI is a mortgage banking company that provides a range of residential lending and loan servicing services in the United States. The company operates through its subsidiaries and focuses primarily on the production and servicing of conventional and government-insured residential mortgage loans.

PennyMac's loan production business acquires, originates and refinances mortgage loans through correspondent, broker-direct and consumer-direct channels.

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