PennyMac Financial Services, Inc. $PFSI Shares Sold by Massachusetts Financial Services Co. MA

Key Points

• Massachusetts Financial Services Co. MA reduced its stake in PennyMac by 24.9%, selling 71,609 shares and now holding 215,993 shares worth about $28.48 million.
• PennyMac reported a quarterly miss — EPS $1.97 vs. $3.23 expected and revenue $538.0M vs. $639.8M expected — indicating weaker-than-anticipated results.
• Insiders were net sellers over the past three months (51,280 shares, ~$4.63M) despite a director buying 2,250 shares, and several analysts cut price targets while the consensus remains a Moderate Buy with a $131.14 target.

Massachusetts Financial Services Co. MA reduced its holdings in PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) by 24.9% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 215,993 shares of the real estate investment trust's stock after selling 71,609 shares during the period. Massachusetts Financial Services Co. MA owned about 0.42% of PennyMac Financial Services worth $28,477,000 at the end of the most recent quarter.

Several other institutional investors also recently bought and sold shares of PFSI. EverSource Wealth Advisors LLC acquired a new stake in PennyMac Financial Services in the second quarter valued at approximately $26,000. Strs Ohio acquired a new stake in shares of PennyMac Financial Services in the first quarter worth approximately $30,000. GAMMA Investing LLC boosted its stake in shares of PennyMac Financial Services by 97.3% in the fourth quarter. GAMMA Investing LLC now owns 288 shares of the real estate investment trust's stock worth $38,000 after acquiring an additional 142 shares during the last quarter. Harbor Capital Advisors Inc. boosted its stake in shares of PennyMac Financial Services by 26.3% in the third quarter. Harbor Capital Advisors Inc. now owns 504 shares of the real estate investment trust's stock worth $62,000 after acquiring an additional 105 shares during the last quarter. Finally, CWM LLC boosted its stake in shares of PennyMac Financial Services by 92.7% in the third quarter. CWM LLC now owns 555 shares of the real estate investment trust's stock worth $69,000 after acquiring an additional 267 shares during the last quarter. 57.87% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In other PennyMac Financial Services news, insider Derek Stark sold 1,903 shares of PennyMac Financial Services stock in a transaction on Wednesday, February 25th. The stock was sold at an average price of $91.50, for a total value of $174,124.50. Following the sale, the insider owned 22,477 shares in the company, valued at $2,056,645.50. The trade was a 7.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Patrick Kinsella purchased 2,250 shares of the firm's stock in a transaction dated Thursday, February 12th. The stock was acquired at an average cost of $89.15 per share, for a total transaction of $200,587.50. Following the purchase, the director owned 34,210 shares in the company, valued at approximately $3,049,821.50. The trade was a 7.04% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders sold 51,280 shares of company stock worth $4,630,853. 15.80% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

PFSI has been the topic of a number of research analyst reports. Wall Street Zen lowered PennyMac Financial Services from a "hold" rating to a "sell" rating in a research note on Saturday, April 11th. Wells Fargo & Company lowered their price target on PennyMac Financial Services from $135.00 to $110.00 and set an "overweight" rating on the stock in a research note on Thursday, April 9th. Barclays lowered their price target on PennyMac Financial Services from $136.00 to $116.00 and set an "overweight" rating on the stock in a research note on Monday, April 6th. Zacks Research raised PennyMac Financial Services from a "strong sell" rating to a "hold" rating in a research note on Friday, April 3rd. Finally, Piper Sandler lowered their price target on PennyMac Financial Services from $137.00 to $122.00 and set an "overweight" rating on the stock in a research note on Thursday, April 2nd. Six analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $131.14.

PennyMac Financial Services Stock Performance

NYSE PFSI opened at $91.89 on Thursday. The stock's fifty day moving average is $89.90 and its two-hundred day moving average is $116.17. The firm has a market capitalization of $4.79 billion, a P/E ratio of 9.88, a price-to-earnings-growth ratio of 0.54 and a beta of 1.52. The company has a debt-to-equity ratio of 3.32, a quick ratio of 0.34 and a current ratio of 0.34. PennyMac Financial Services, Inc. has a fifty-two week low of $82.65 and a fifty-two week high of $160.36.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last released its quarterly earnings data on Thursday, January 29th. The real estate investment trust reported $1.97 earnings per share for the quarter, missing analysts' consensus estimates of $3.23 by ($1.26). The company had revenue of $538.01 million for the quarter, compared to analyst estimates of $639.81 million. PennyMac Financial Services had a return on equity of 10.20% and a net margin of 24.48%.The business's quarterly revenue was up 14.4% on a year-over-year basis. During the same period last year, the firm posted $1.95 EPS. On average, research analysts anticipate that PennyMac Financial Services, Inc. will post 13.77 earnings per share for the current year.

PennyMac Financial Services Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, February 26th. Shareholders of record on Monday, February 16th were paid a dividend of $0.30 per share. The ex-dividend date of this dividend was Friday, February 13th. This represents a $1.20 dividend on an annualized basis and a yield of 1.3%. PennyMac Financial Services's payout ratio is 12.90%.

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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