Palisade Capital Management LP Buys New Position in PennyMac Financial Services, Inc. $PFSI

Key Points

• Palisade Capital Management acquired 50,121 shares of PennyMac Financial Services in the second quarter, valued at approximately $4.4 million and representing about 0.10% of the company.
• PFSI shares opened at $74.15, near their one-year low, after the company reported quarterly EPS of $1.39—below the $2.11 analyst consensus—despite revenue increasing 11.8% year over year.
• The company declared a quarterly dividend of $0.30, or $1.20 annually, implying a 1.6% yield. Analysts’ consensus rating is “Hold,” with a consensus price target of $104.88, while several firms recently lowered their targets.

Palisade Capital Management LP bought a new position in PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 50,121 shares of the real estate investment trust's stock, valued at approximately $4,366,000. Palisade Capital Management LP owned approximately 0.10% of PennyMac Financial Services as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also recently added to or reduced their stakes in the business. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of PennyMac Financial Services during the 2nd quarter worth approximately $25,000. EverSource Wealth Advisors LLC acquired a new position in shares of PennyMac Financial Services during the 2nd quarter valued at $26,000. Caitong International Asset Management Co. Ltd lifted its position in shares of PennyMac Financial Services by 7,600.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 231 shares of the real estate investment trust's stock valued at $30,000 after acquiring an additional 228 shares during the period. Strs Ohio bought a new position in PennyMac Financial Services during the first quarter worth $30,000. Finally, Los Angeles Capital Management LLC bought a new position in PennyMac Financial Services during the fourth quarter worth $31,000. 57.87% of the stock is owned by institutional investors and hedge funds.

PennyMac Financial Services Stock Down 1.4%

Shares of NYSE PFSI opened at $74.15 on Wednesday. The stock has a market capitalization of $3.85 billion, a P/E ratio of 10.19, a P/E/G ratio of 0.71 and a beta of 1.45. The company has a 50-day moving average price of $80.87 and a 200-day moving average price of $85.74. PennyMac Financial Services, Inc. has a 1 year low of $71.68 and a 1 year high of $160.36. The company has a debt-to-equity ratio of 3.22, a current ratio of 0.38 and a quick ratio of 0.38.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last posted its earnings results on Wednesday, July 29th. The real estate investment trust reported $1.39 EPS for the quarter, missing the consensus estimate of $2.11 by ($0.72). PennyMac Financial Services had a return on equity of 11.18% and a net margin of 17.74%.During the same quarter in the prior year, the company earned $2.54 EPS. The firm's revenue was up 11.8% compared to the same quarter last year. On average, equities research analysts forecast that PennyMac Financial Services, Inc. will post 7.36 EPS for the current fiscal year.

PennyMac Financial Services Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Stockholders of record on Monday, August 17th will be paid a $0.30 dividend. The ex-dividend date of this dividend is Monday, August 17th. This represents a $1.20 annualized dividend and a dividend yield of 1.6%. PennyMac Financial Services's dividend payout ratio is 16.48%.

Wall Street Analyst Weigh In

Several research firms have weighed in on PFSI. Wall Street Zen downgraded shares of PennyMac Financial Services from a "hold" rating to a "sell" rating in a research note on Saturday, August 1st. Weiss Ratings restated a "sell (d+)" rating on shares of PennyMac Financial Services in a research note on Monday, August 3rd. Stephens decreased their target price on PennyMac Financial Services from $91.00 to $78.00 and set an "equal weight" rating for the company in a research report on Thursday, July 30th. BTIG Research dropped their price target on PennyMac Financial Services from $105.00 to $90.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. Finally, Barclays cut their price target on PennyMac Financial Services from $93.00 to $85.00 and set an "equal weight" rating on the stock in a report on Thursday, July 30th. Four analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, PennyMac Financial Services presently has an average rating of "Hold" and a consensus price target of $104.88.

Insider Buying and Selling at PennyMac Financial Services

In related news, CAO Gregory L. Hendry sold 2,943 shares of PennyMac Financial Services stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $81.71, for a total transaction of $240,472.53. Following the transaction, the chief accounting officer owned 48,968 shares of the company's stock, valued at $4,001,175.28. The trade was a 5.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 15.20% of the stock is owned by corporate insiders.

PennyMac Financial Services Company Profile

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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