Orbis Allan Gray Ltd Grows Position in PennyMac Financial Services, Inc. $PFSI

Key Points

• Orbis Allan Gray Ltd significantly increased its stake in PennyMac Financial Services by 447.5%, owning 926,775 shares valued at approximately $92.78 million as of the latest SEC filing.
• Insiders at PennyMac Financial Services have sold a total of 26,857 shares worth around $2.81 million in the last ninety days, indicating a decrease in their ownership.
• PennyMac Financial Services reported an EPS of $1.02 for the last quarter, missing estimates of $3.01, with revenue of $444.73 million compared to expectations of $547.44 million.

Orbis Allan Gray Ltd lifted its holdings in shares of PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) by 447.5% in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 926,775 shares of the real estate investment trust's stock after acquiring an additional 757,489 shares during the quarter. Orbis Allan Gray Ltd owned approximately 1.79% of PennyMac Financial Services worth $92,779,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors have also added to or reduced their stakes in the company. CWM LLC raised its holdings in PennyMac Financial Services by 71.5% in the first quarter. CWM LLC now owns 271 shares of the real estate investment trust's stock worth $27,000 after purchasing an additional 113 shares in the last quarter. Aquatic Capital Management LLC bought a new position in PennyMac Financial Services in the fourth quarter worth $71,000. Xponance Inc. bought a new position in PennyMac Financial Services in the first quarter worth $202,000. Hohimer Wealth Management LLC raised its holdings in PennyMac Financial Services by 5.4% in the first quarter. Hohimer Wealth Management LLC now owns 2,351 shares of the real estate investment trust's stock worth $235,000 after purchasing an additional 121 shares in the last quarter. Finally, AlphaQuest LLC raised its holdings in PennyMac Financial Services by 4.4% in the first quarter. AlphaQuest LLC now owns 2,587 shares of the real estate investment trust's stock worth $259,000 after purchasing an additional 110 shares in the last quarter. Institutional investors own 57.87% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on PFSI shares. Keefe, Bruyette & Woods increased their price objective on PennyMac Financial Services from $117.00 to $121.00 and gave the stock an "outperform" rating in a report on Wednesday. Barclays decreased their price objective on PennyMac Financial Services from $124.00 to $119.00 and set an "overweight" rating for the company in a report on Tuesday, July 8th. Wells Fargo & Company started coverage on PennyMac Financial Services in a research note on Monday, August 25th. They issued an "overweight" rating and a $115.00 target price on the stock. Wall Street Zen raised PennyMac Financial Services from a "sell" rating to a "hold" rating in a research note on Friday, August 22nd. Finally, UBS Group cut their target price on PennyMac Financial Services from $115.00 to $110.00 and set a "neutral" rating on the stock in a research note on Thursday, July 24th. Five equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat.com, PennyMac Financial Services has an average rating of "Moderate Buy" and an average target price of $119.33.

PennyMac Financial Services Stock Performance

Shares of PennyMac Financial Services stock traded up $3.45 during trading on Wednesday, hitting $112.78. 466,868 shares of the company's stock traded hands, compared to its average volume of 377,219. The stock has a market capitalization of $5.83 billion, a P/E ratio of 15.64 and a beta of 1.51. 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 business has a 50-day simple moving average of $101.76 and a 200-day simple moving average of $99.26. PennyMac Financial Services, Inc. has a 1 year low of $85.74 and a 1 year high of $119.13.

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). The firm had revenue of $444.73 million during the quarter, compared to analysts' expectations of $547.44 million. PennyMac Financial Services had a return on equity of 12.18% and a net margin of 22.00%.The company's revenue for the quarter was up 9.5% on a year-over-year basis. During the same period in the previous year, the business posted $1.85 earnings per share. As a group, 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 disclosed a quarterly dividend, which was paid on Friday, August 22nd. Stockholders of record on Wednesday, August 13th were paid a $0.30 dividend. The ex-dividend date of this dividend was Wednesday, August 13th. This represents a $1.20 annualized dividend and a dividend yield of 1.1%. PennyMac Financial Services's dividend payout ratio (DPR) is 16.64%.

Insider Transactions at PennyMac Financial Services

In related news, CEO David Spector sold 5,000 shares of PennyMac Financial Services stock in a transaction that occurred on Monday, July 7th. The stock was sold at an average price of $100.81, for a total transaction of $504,050.00. Following the sale, the chief executive officer owned 135,604 shares of the company's stock, valued at approximately $13,670,239.24. This trade represents a 3.56% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Derek Stark sold 4,750 shares of PennyMac Financial Services stock in a transaction that occurred on Monday, August 25th. The shares were sold at an average price of $109.56, for a total value of $520,410.00. Following the sale, the insider directly owned 20,621 shares in the company, valued at $2,259,236.76. This trade represents a 18.72% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 26,857 shares of company stock valued at $2,813,253 over the last quarter. 15.80% of the stock is currently owned by company insiders.

PennyMac Financial Services 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.