EMG Holdings L.P. Acquires Shares of 64,580 PennyMac Financial Services, Inc. $PFSI

Key Points

• EMG Holdings L.P. has acquired 64,580 shares of PennyMac Financial Services, valued at approximately $6.47 million, making it the fund's 6th largest holding.
• PennyMac Financial Services reported a net loss of $1.99 EPS for the last quarter, missing analyst estimates significantly, while the company’s revenue increased by 9.5% year-over-year.
• The company's stock saw a 6.2% increase recently, and multiple research firms have adjusted their target prices, reflecting mixed ratings from analysts.

EMG Holdings L.P. purchased a new position in shares of PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 64,580 shares of the real estate investment trust's stock, valued at approximately $6,465,000. PennyMac Financial Services accounts for 3.1% of EMG Holdings L.P.'s portfolio, making the stock its 6th biggest holding. EMG Holdings L.P. owned 0.13% of PennyMac Financial Services at the end of the most recent quarter.

Other institutional investors and hedge funds have also made changes to their positions in the company. GAMMA Investing LLC increased its stake in shares of PennyMac Financial Services by 12,101.0% during the first quarter. GAMMA Investing LLC now owns 11,713 shares of the real estate investment trust's stock worth $1,173,000 after acquiring an additional 11,617 shares during the period. Renaissance Technologies LLC acquired a new position in shares of PennyMac Financial Services during the fourth quarter worth about $1,307,000. Lightrock Netherlands B.V. increased its stake in shares of PennyMac Financial Services by 55.1% during the first quarter. Lightrock Netherlands B.V. now owns 136,055 shares of the real estate investment trust's stock worth $13,643,000 after acquiring an additional 48,312 shares during the period. Picton Mahoney Asset Management increased its stake in shares of PennyMac Financial Services by 12,632.9% during the first quarter. Picton Mahoney Asset Management now owns 89,130 shares of the real estate investment trust's stock worth $8,922,000 after acquiring an additional 88,430 shares during the period. Finally, Y Intercept Hong Kong Ltd acquired a new position in PennyMac Financial Services during the first quarter worth about $695,000. 57.87% of the stock is currently owned by institutional investors and hedge funds.

PennyMac Financial Services Stock Up 6.2%

Shares of NYSE PFSI opened at $109.7590 on Monday. PennyMac Financial Services, Inc. has a 12-month low of $85.74 and a 12-month high of $119.13. 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 debt-to-equity ratio of 3.03, a current ratio of 0.34 and a quick ratio of 0.34. The firm's 50-day moving average is $99.81 and its two-hundred day moving average is $98.88.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last announced its quarterly 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 during the quarter, compared to analysts' expectations of $547.44 million. During the same period last year, the company earned $1.85 EPS. The firm's revenue for the quarter was up 9.5% on a year-over-year basis. Equities analysts anticipate that PennyMac Financial Services, Inc. will post 13.77 EPS for the current fiscal year.

PennyMac Financial Services Dividend Announcement

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

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the stock. Barclays lowered their target price on shares of PennyMac Financial Services from $124.00 to $119.00 and set an "overweight" rating on the stock in a research report on Tuesday, July 8th. Keefe, Bruyette & Woods lowered their target price on shares of PennyMac Financial Services from $121.00 to $117.00 and set an "outperform" rating on the stock in a research report on Thursday, July 24th. Wells Fargo & Company lowered their target price on shares of PennyMac Financial Services from $120.00 to $115.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 23rd. Piper Sandler lowered their target price on shares of PennyMac Financial Services from $125.00 to $121.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 23rd. Finally, UBS Group lowered their target price on shares of PennyMac Financial Services from $115.00 to $110.00 and set a "neutral" rating on the stock in a research report on Thursday, July 24th. Five research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $118.67.

Insider Activity

In related news, Director Joseph F. Mazzella sold 7,107 shares of the company's stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $108.16, for a total transaction of $768,693.12. Following the transaction, the director owned 86,050 shares of the company's stock, valued at approximately $9,307,168. This represents a 7.63% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO David Spector sold 5,000 shares of the company's stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $105.73, for a total transaction 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. The trade was a 3.69% decrease in their position. The disclosure for this sale can be found here. Insiders sold 22,107 shares of company stock worth $2,292,843 in the last ninety days. Insiders own 15.80% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.