Dimensional Fund Advisors LP Trims Position in PennyMac Financial Services, Inc. $PFSI

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 lowered its stake in PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) by 9.3% in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 1,950,300 shares of the real estate investment trust's stock after selling 199,285 shares during the quarter. Dimensional Fund Advisors LP owned approximately 3.77% of PennyMac Financial Services worth $195,242,000 as of its most recent filing with the Securities & Exchange Commission.

Several other large investors have also added to or reduced their stakes in PFSI. Renaissance Technologies LLC bought a new position in PennyMac Financial Services in the 4th quarter worth about $1,307,000. Sterling Capital Management LLC boosted its position in shares of 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 acquiring an additional 343 shares during the last quarter. Summit Investment Advisors Inc. boosted its position in shares of PennyMac Financial Services by 5.8% during the 4th quarter. Summit Investment Advisors Inc. now owns 2,797 shares of the real estate investment trust's stock valued at $286,000 after acquiring an additional 154 shares during the last quarter. Mariner LLC boosted its position in shares of PennyMac Financial Services by 120.1% during the 4th quarter. Mariner LLC now owns 6,026 shares of the real estate investment trust's stock valued at $615,000 after acquiring an additional 3,288 shares during the last quarter. Finally, Jump Financial LLC bought a new stake in shares of PennyMac Financial Services during the 4th quarter valued at about $306,000. Institutional investors own 57.87% of the company's stock.

PennyMac Financial Services Price Performance

Shares of NYSE PFSI traded up $6.3690 during trading hours on Friday, reaching $109.7590. 562,606 shares of the stock traded hands, compared to its average volume of 397,716. The company has a market capitalization of $5.68 billion, a P/E ratio of 15.22 and a beta of 1.50. 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, Inc. has a 52-week low of $85.74 and a 52-week high of $119.13. The company's 50-day simple moving average is $99.81 and its two-hundred day simple moving average is $98.92.

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

PennyMac Financial Services Announces Dividend

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

Insider Buying and Selling

In other PennyMac Financial Services news, Director Joseph F. Mazzella sold 7,107 shares of PennyMac Financial Services stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $108.16, for a total value of $768,693.12. Following the transaction, the director directly owned 86,050 shares of the company's stock, valued at $9,307,168. The trade was a 7.63% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO David Spector sold 5,000 shares of PennyMac Financial Services stock in a transaction that occurred on Monday, August 18th. The stock was sold at an average price of $105.73, for a total value of $528,650.00. Following the completion of the transaction, the chief executive officer directly owned 130,604 shares in the company, valued at $13,808,760.92. This trade represents a 3.69% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 22,107 shares of company stock worth $2,292,843 over the last ninety days. Insiders own 15.80% of the company's stock.

Wall Street Analysts Forecast Growth

PFSI has been the subject of a number of research analyst reports. Keefe, Bruyette & Woods dropped 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. UBS Group dropped their price target 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. Wells Fargo & Company dropped their price target on PennyMac Financial Services from $120.00 to $115.00 and set an "overweight" rating for the company in a research report on Wednesday, July 23rd. Barclays dropped 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. Finally, Piper Sandler decreased their price objective on PennyMac Financial Services from $125.00 to $121.00 and set an "overweight" rating on the stock in a report on Wednesday, July 23rd. Five equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $118.67.

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.