PennyMac Financial Services, Inc. $PFSI Shares Sold by Dimensional Fund Advisors LP

Key Points

• Dimensional Fund Advisors LP cut its stake in PennyMac Financial Services by 9.3%, now holding 1,950,300 shares worth approximately $195.2 million, as detailed in its recent SEC filing.
• Analysts have lowered price targets for PennyMac, with Barclays reducing theirs from $124 to $119 and UBS from $115 to $110, reflecting a cautious outlook amidst varied ratings on the stock.
• Despite recent insider sales, including Director Joseph F. Mazzella and CEO David Spector selling shares, the company declared a $0.30 quarterly dividend, demonstrating a commitment to returning value to shareholders.

Dimensional Fund Advisors LP cut its position in shares of PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) by 9.3% in the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 1,950,300 shares of the real estate investment trust's stock after selling 199,285 shares during the period. Dimensional Fund Advisors LP owned about 3.77% of PennyMac Financial Services worth $195,242,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds have also bought and sold shares of PFSI. CWM LLC raised its position in PennyMac Financial Services by 71.5% during the 1st quarter. CWM LLC now owns 271 shares of the real estate investment trust's stock valued at $27,000 after purchasing an additional 113 shares in the last quarter. TD Waterhouse Canada Inc. bought a new stake in PennyMac Financial Services during the 4th quarter valued at $39,000. Sterling Capital Management LLC raised its position in PennyMac Financial Services by 601.8% during the 4th quarter. Sterling Capital Management LLC now owns 400 shares of the real estate investment trust's stock valued at $41,000 after purchasing an additional 343 shares in the last quarter. Aquatic Capital Management LLC bought a new stake in PennyMac Financial Services during the 4th quarter valued at $71,000. Finally, Xponance Inc. bought a new stake in PennyMac Financial Services during the 1st quarter valued at $202,000. 57.87% of the stock is owned by institutional investors.

Insider Activity

In related news, Director Joseph F. Mazzella sold 7,107 shares of the company's stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $108.16, for a total transaction of $768,693.12. Following the transaction, the director directly owned 86,050 shares of the company's stock, valued at $9,307,168. This represents a 7.63% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO David Spector sold 5,000 shares of the company's stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $105.73, for a total value of $528,650.00. Following the transaction, the chief executive officer directly owned 130,604 shares in the company, valued at $13,808,760.92. This represents a 3.69% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 22,107 shares of company stock worth $2,292,843 over the last ninety days. 15.80% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

A number of brokerages have weighed in on PFSI. UBS Group decreased their target price on PennyMac Financial Services from $115.00 to $110.00 and set a "neutral" rating for the company in a research report on Thursday, July 24th. Barclays reduced their price target on PennyMac Financial Services from $124.00 to $119.00 and set an "overweight" rating for the company in a research report on Tuesday, July 8th. Keefe, Bruyette & Woods reduced their price target on PennyMac Financial Services from $121.00 to $117.00 and set an "outperform" rating for the company in a research report on Thursday, July 24th. Wall Street Zen raised PennyMac Financial Services from a "sell" rating to a "hold" rating in a research report on Friday. Finally, Piper Sandler reduced their price target on PennyMac Financial Services from $125.00 to $121.00 and set an "overweight" rating for the company in a research report on Wednesday, July 23rd. Five investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $118.67.

PennyMac Financial Services Stock Up 6.2%

Shares of PFSI traded up $6.3690 during trading hours on Friday, hitting $109.7590. The company had a trading volume of 562,606 shares, compared to its average volume of 402,826. The company has a market capitalization of $5.68 billion, a PE ratio of 15.22 and a beta of 1.50. The company has a current ratio of 0.34, a quick ratio of 0.34 and a debt-to-equity ratio of 3.03. PennyMac Financial Services, Inc. has a one year low of $85.74 and a one year high of $119.13. The company's fifty day moving average price is $99.81 and its two-hundred day moving average price is $98.88.

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 the consensus estimate of $3.01 by ($1.99). PennyMac Financial Services had a net margin of 22.00% and a return on equity of 12.18%. The business had revenue of $444.73 million for the quarter, compared to analyst estimates of $547.44 million. During the same period in the prior year, the company earned $1.85 earnings per share. The company's quarterly revenue was up 9.5% on a year-over-year basis. As a group, equities analysts forecast that PennyMac Financial Services, Inc. will post 13.77 earnings per share for the current fiscal year.

PennyMac Financial Services Dividend Announcement

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

About PennyMac Financial Services

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.