Picton Mahoney Asset Management Increases Stake in PennyMac Financial Services, Inc. (NYSE:PFSI)

Key Points

• Picton Mahoney Asset Management increased its stake in PennyMac Financial Services by an astonishing 12,632.9% during the 1st quarter, acquiring an additional 88,430 shares to reach a total of 89,130 shares worth approximately $8.92 million.
• PennyMac Financial Services reported earnings per share of $1.02 for the last quarter, missing estimates significantly, while its revenue was up 9.5% year-over-year despite falling short of expectations.
• The company announced a quarterly dividend of $0.30 per share, equivalent to an annualized dividend of $1.20, representing a yield of 1.28% with a payout ratio of 16.64%.

Picton Mahoney Asset Management grew its position in PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) by 12,632.9% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 89,130 shares of the real estate investment trust's stock after acquiring an additional 88,430 shares during the quarter. Picton Mahoney Asset Management owned about 0.17% of PennyMac Financial Services worth $8,922,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in PFSI. Vanguard Group Inc. increased its stake in PennyMac Financial Services by 7.4% in the 4th quarter. Vanguard Group Inc. now owns 2,886,580 shares of the real estate investment trust's stock worth $294,835,000 after buying an additional 199,667 shares during the period. FMR LLC increased its stake in PennyMac Financial Services by 11.9% in the 4th quarter. FMR LLC now owns 1,305,851 shares of the real estate investment trust's stock worth $133,380,000 after buying an additional 138,853 shares during the period. Invesco Ltd. increased its stake in PennyMac Financial Services by 0.3% in the 4th quarter. Invesco Ltd. now owns 1,183,458 shares of the real estate investment trust's stock worth $120,878,000 after buying an additional 3,527 shares during the period. Geode Capital Management LLC increased its stake in PennyMac Financial Services by 1.7% in the 4th quarter. Geode Capital Management LLC now owns 658,559 shares of the real estate investment trust's stock worth $67,283,000 after buying an additional 10,795 shares during the period. Finally, Millennium Management LLC increased its stake in PennyMac Financial Services by 104.5% in the 4th quarter. Millennium Management LLC now owns 518,574 shares of the real estate investment trust's stock worth $52,967,000 after buying an additional 264,956 shares during the period. Hedge funds and other institutional investors own 57.87% of the company's stock.

PennyMac Financial Services Stock Down 0.5%

Shares of PennyMac Financial Services stock opened at $93.56 on Tuesday. The company has a debt-to-equity ratio of 2.96, a current ratio of 0.30 and a quick ratio of 0.30. PennyMac Financial Services, Inc. has a 1 year low of $85.74 and a 1 year high of $119.13. The firm's 50-day moving average is $97.80 and its two-hundred day moving average is $99.64. The stock has a market cap of $4.83 billion, a price-to-earnings ratio of 12.98 and a beta of 1.53.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last issued 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). PennyMac Financial Services had a return on equity of 12.34% and a net margin of 22.00%. The business had revenue of $444.73 million for the quarter, compared to the consensus estimate of $547.44 million. During the same quarter in the previous year, the company earned $1.85 earnings per share. The firm's revenue was up 9.5% on a year-over-year basis. As a group, research analysts expect that PennyMac Financial Services, Inc. will post 13.77 earnings per share for the current fiscal year.

PennyMac Financial Services Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 22nd. Stockholders of record on Wednesday, August 13th will be given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.28%. The ex-dividend date is Wednesday, August 13th. PennyMac Financial Services's payout ratio is currently 16.64%.

Insider Transactions at PennyMac Financial Services

In other news, CEO David Spector sold 5,000 shares of PennyMac Financial Services stock in a transaction that occurred on Monday, July 7th. The shares were sold at an average price of $100.81, for a total value of $504,050.00. Following the transaction, the chief executive officer owned 135,604 shares of the company's stock, valued at $13,670,239.24. The trade was a 3.56% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Daniel Stanley Perotti sold 10,500 shares of PennyMac Financial Services stock in a transaction that occurred on Thursday, May 15th. The stock was sold at an average price of $99.45, for a total transaction of $1,044,225.00. Following the completion of the transaction, the chief financial officer directly owned 234,025 shares in the company, valued at approximately $23,273,786.25. The trade was a 4.29% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 36,500 shares of company stock valued at $3,616,005 in the last 90 days. Insiders own 15.80% of the company's stock.

Wall Street Analyst Weigh In

Several research firms recently commented on PFSI. UBS Group reduced their price target on shares of 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. Wells Fargo & Company reduced their price target on shares of PennyMac Financial Services from $120.00 to $115.00 and set an "overweight" rating on the stock in a research note on Wednesday, July 23rd. Piper Sandler reduced their price target on shares of PennyMac Financial Services from $125.00 to $121.00 and set an "overweight" rating on the stock in a research note on Wednesday, July 23rd. Barclays reduced their price target on shares of PennyMac Financial Services from $124.00 to $119.00 and set an "overweight" rating on the stock in a research note on Tuesday, July 8th. Finally, Keefe, Bruyette & Woods dropped their target price on shares of PennyMac Financial Services from $121.00 to $117.00 and set an "outperform" rating on the stock in a report on Thursday, July 24th. One equities research analyst has rated the stock with a hold rating and five have issued a buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $118.67.

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.

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