FJ Capital Management LLC Sells 22,997 Shares of PennyMac Financial Services, Inc. $PFSI

Key Points

• FJ Capital Management cut its PennyMac Financial Services stake by 44.6% in the fourth quarter, selling 22,997 shares and leaving it with 28,562 shares valued at about $3.77 million.
• PennyMac Financial Services reported mixed quarterly results, with EPS of $2.19 missing estimates by a cent and revenue of $544.98 million coming in slightly below forecasts, though revenue still rose 26.5% year over year.
• Analyst sentiment remains cautious: the stock has a consensus rating of “Hold” with an average price target of $122.75, even as some firms trimmed their targets and others maintained bullish ratings.

FJ Capital Management LLC lowered its stake in PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) by 44.6% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 28,562 shares of the real estate investment trust's stock after selling 22,997 shares during the quarter. FJ Capital Management LLC owned approximately 0.05% of PennyMac Financial Services worth $3,766,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently made changes to their positions in PFSI. 140 Summer Partners LP bought a new position in shares of PennyMac Financial Services in the third quarter worth about $55,268,000. Norges Bank bought a new position in shares of PennyMac Financial Services in the fourth quarter worth about $44,287,000. Two Sigma Investments LP lifted its holdings in shares of PennyMac Financial Services by 1,148.7% in the third quarter. Two Sigma Investments LP now owns 310,919 shares of the real estate investment trust's stock worth $38,517,000 after acquiring an additional 286,019 shares during the last quarter. Holocene Advisors LP lifted its holdings in shares of PennyMac Financial Services by 2,379.5% in the third quarter. Holocene Advisors LP now owns 245,268 shares of the real estate investment trust's stock worth $30,384,000 after acquiring an additional 235,376 shares during the last quarter. Finally, Invesco Ltd. lifted its holdings in shares of PennyMac Financial Services by 18.3% in the third quarter. Invesco Ltd. now owns 1,463,096 shares of the real estate investment trust's stock worth $181,248,000 after acquiring an additional 226,581 shares during the last quarter. Institutional investors own 57.87% of the company's stock.

Wall Street Analyst Weigh In

PFSI has been the subject of a number of research reports. Wall Street Zen raised shares of PennyMac Financial Services from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. Keefe, Bruyette & Woods lowered their price objective on PennyMac Financial Services from $115.00 to $108.00 and set an "outperform" rating for the company in a research note on Friday, May 8th. Piper Sandler lowered their price objective on PennyMac Financial Services from $122.00 to $112.00 and set an "overweight" rating for the company in a research note on Wednesday, May 6th. Zacks Research downgraded PennyMac Financial Services from a "hold" rating to a "strong sell" rating in a research note on Friday, May 8th. Finally, Stephens started coverage on PennyMac Financial Services in a research note on Friday, April 24th. They issued an "equal weight" rating and a $100.00 price objective for the company. Six analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, PennyMac Financial Services presently has an average rating of "Hold" and a consensus price target of $122.75.

PennyMac Financial Services Stock Performance

PennyMac Financial Services stock opened at $81.54 on Friday. The business has a 50 day moving average of $87.63 and a 200-day moving average of $105.73. PennyMac Financial Services, Inc. has a 1 year low of $77.67 and a 1 year high of $160.36. The company has a debt-to-equity ratio of 3.63, a current ratio of 0.33 and a quick ratio of 0.33. The company has a market capitalization of $4.23 billion, a P/E ratio of 8.66, a P/E/G ratio of 0.53 and a beta of 1.44.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The real estate investment trust reported $2.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.22 by ($0.03). The firm had revenue of $544.98 million during the quarter, compared to analyst estimates of $546.17 million. PennyMac Financial Services had a net margin of 23.47% and a return on equity of 10.93%. The business's quarterly revenue was up 26.5% compared to the same quarter last year. During the same period in the prior year, the company earned $1.42 EPS. On average, equities research analysts predict that PennyMac Financial Services, Inc. will post 10.68 earnings per share for the current year.

PennyMac Financial Services Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, May 28th. Shareholders of record on Monday, May 18th were given a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend was Monday, May 18th. PennyMac Financial Services's dividend payout ratio is currently 12.75%.

Insider Buying and Selling

In other PennyMac Financial Services news, CFO Daniel Stanley Perotti sold 2,925 shares of the stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $87.50, for a total transaction of $255,937.50. Following the completion of the sale, the chief financial officer owned 210,625 shares of the company's stock, valued at approximately $18,429,687.50. This represents a 1.37% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Spector sold 10,000 shares of the stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $87.99, for a total transaction of $879,900.00. Following the sale, the chief executive officer directly owned 60,604 shares of the company's stock, valued at $5,332,545.96. This represents a 14.16% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 22,925 shares of company stock valued at $2,064,138 in the last three months. Insiders own 15.80% of the company's stock.

About PennyMac Financial Services

PennyMac Financial Services, Inc NYSE: PFSI is a leading mortgage banking company based in Westlake Village, California. The firm operates through two primary business segments: Production and Mortgage Servicing Rights (MSR). In its Production segment, PennyMac originates residential mortgage loans through retail, wholesale and correspondent channels, focusing on both purchase and refinance transactions. The MSR segment involves the acquisition and servicing of mortgage loans, whereby the company earns fees for managing loan portfolios on behalf of investors.

Since its founding in 2008, PennyMac has grown through a combination of organic origination and strategic acquisition of servicing rights, positioning itself as one of the largest residential mortgage loan servicers in the United States.

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