Russell Investments Group Ltd. Raises Position in PennyMac Financial Services, Inc. $PFSI

Key Points

• Russell Investments Group Ltd. increased its stake in PennyMac Financial Services by 19.8%, owning 17,145 shares valued at approximately $1.72 million.
• PennyMac reported Q2 earnings of $1.02 per share, significantly missing the consensus estimate of $3.01, with revenue of $444.73 million compared to expectations of $547.44 million.
• The company announced a quarterly dividend of $0.30 per share, representing a 1.1% yield and a payout ratio of 16.64%.

Russell Investments Group Ltd. increased its holdings in PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) by 19.8% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 17,145 shares of the real estate investment trust's stock after acquiring an additional 2,832 shares during the period. Russell Investments Group Ltd.'s holdings in PennyMac Financial Services were worth $1,716,000 at the end of the most recent quarter.

Several other hedge funds also recently bought and sold shares of PFSI. Millennium Management LLC grew its stake in PennyMac Financial Services by 104.5% in the fourth quarter. Millennium Management LLC now owns 518,574 shares of the real estate investment trust's stock worth $52,967,000 after purchasing an additional 264,956 shares during the period. Nuveen LLC purchased a new stake in PennyMac Financial Services in the 1st quarter valued at about $10,550,000. Bank of New York Mellon Corp increased its holdings in shares of PennyMac Financial Services by 45.9% in the 1st quarter. Bank of New York Mellon Corp now owns 290,235 shares of the real estate investment trust's stock valued at $29,055,000 after acquiring an additional 91,338 shares during the period. Picton Mahoney Asset Management raised its position in shares of PennyMac Financial Services by 12,632.9% in the 1st quarter. Picton Mahoney Asset Management now owns 89,130 shares of the real estate investment trust's stock valued at $8,922,000 after purchasing an additional 88,430 shares during the last quarter. Finally, Invesco Ltd. boosted its holdings in PennyMac Financial Services by 4.5% in the first quarter. Invesco Ltd. now owns 1,237,118 shares of the real estate investment trust's stock valued at $123,848,000 after purchasing an additional 53,660 shares during the last quarter. Hedge funds and other institutional investors own 57.87% of the company's stock.

Insider Activity

In other PennyMac Financial Services news, insider Derek Stark sold 4,750 shares of the business's stock in a transaction that occurred on Monday, August 25th. The stock was sold at an average price of $109.56, for a total transaction of $520,410.00. Following the completion of the sale, the insider directly owned 20,621 shares of the company's stock, valued at approximately $2,259,236.76. The trade was a 18.72% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Joseph F. Mazzella sold 7,107 shares of the 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 directly owned 86,050 shares of the company's stock, valued at $9,307,168. This represents a 7.63% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 26,857 shares of company stock worth $2,813,253. Company insiders own 15.80% of the company's stock.

Analysts Set New Price Targets

Several research analysts have recently weighed in on PFSI shares. Keefe, Bruyette & Woods lowered their price target 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. Wall Street Zen upgraded shares of PennyMac Financial Services from a "sell" rating to a "hold" rating in a research note on Friday, August 22nd. UBS Group decreased their price objective on PennyMac Financial Services from $115.00 to $110.00 and set a "neutral" rating on the stock in a report on Thursday, July 24th. Piper Sandler lowered their target price on PennyMac Financial Services from $125.00 to $121.00 and set an "overweight" rating for the company in a research note on Wednesday, July 23rd. Finally, Barclays dropped their price target on 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. Five investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $118.67.

PennyMac Financial Services Trading Up 1.2%

Shares of NYSE PFSI traded up $1.31 during midday trading on Monday, reaching $110.17. 316,324 shares of the stock were exchanged, compared to its average volume of 371,811. The company has a market capitalization of $5.70 billion, a price-to-earnings ratio of 15.28 and a beta of 1.51. PennyMac Financial Services, Inc. has a 12 month low of $85.74 and a 12 month high of $119.13. The business has a 50-day simple moving average of $101.28 and a two-hundred day simple moving average of $99.13. The company has a debt-to-equity ratio of 3.03, a current ratio of 0.34 and a quick ratio of 0.34.

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 EPS for the quarter, missing analysts' consensus estimates of $3.01 by ($1.99). The firm had revenue of $444.73 million during the quarter, compared to analyst estimates 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 revenue was up 9.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.85 EPS. As a group, equities research analysts expect that PennyMac Financial Services, Inc. will post 13.77 EPS for the current year.

PennyMac Financial Services Dividend Announcement

The firm 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. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend was Wednesday, August 13th. PennyMac Financial Services's payout ratio is currently 16.64%.

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.