T. Rowe Price Investment Management Inc. Acquires 24,055 Shares of PennyMac Financial Services, Inc. $PFSI

Key Points

• T. Rowe Price Investment Management Inc. increased its holdings in PennyMac Financial Services by 0.6% during Q1, owning approximately 8.30% of shares, valued at $429 million.
• Insider transactions included Director Joseph F. Mazzella selling 7,107 shares and CEO David Spector selling 5,000 shares, representing decreases of 7.63% and 3.56% in their holdings, respectively.
• PennyMac Financial Services reported a miss on EPS estimates for Q2, posting $1.02, significantly lower than the expected $3.01, and announced a quarterly dividend of $0.30.

T. Rowe Price Investment Management Inc. grew its stake in PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) by 0.6% during the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 4,289,819 shares of the real estate investment trust's stock after purchasing an additional 24,055 shares during the quarter. T. Rowe Price Investment Management Inc. owned approximately 8.30% of PennyMac Financial Services worth $429,454,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of PFSI. GAMMA Investing LLC grew its stake in shares of PennyMac Financial Services by 12,101.0% in the 1st quarter. GAMMA Investing LLC now owns 11,713 shares of the real estate investment trust's stock worth $1,173,000 after acquiring an additional 11,617 shares in the last quarter. Renaissance Technologies LLC bought a new stake in shares of PennyMac Financial Services in the 4th quarter worth $1,307,000. Lightrock Netherlands B.V. grew its stake in shares of PennyMac Financial Services by 55.1% in the 1st quarter. Lightrock Netherlands B.V. now owns 136,055 shares of the real estate investment trust's stock worth $13,643,000 after acquiring an additional 48,312 shares in the last quarter. Picton Mahoney Asset Management grew its stake 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 worth $8,922,000 after acquiring an additional 88,430 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd bought a new stake in shares of PennyMac Financial Services in the 1st quarter worth $695,000. Institutional investors own 57.87% of the company's stock.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on PFSI. Wells Fargo & Company assumed coverage on shares of PennyMac Financial Services in a research note on Monday. They issued an "overweight" rating and a $115.00 target price for the company. Wall Street Zen raised PennyMac Financial Services from a "sell" rating to a "hold" rating in a report on Friday. Keefe, Bruyette & Woods reduced their target price on PennyMac Financial Services from $121.00 to $117.00 and set an "outperform" rating for the company in a report on Thursday, July 24th. Barclays reduced their target price 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. Finally, UBS Group reduced their target price on PennyMac Financial Services from $115.00 to $110.00 and set a "neutral" rating for the company in a report on Thursday, July 24th. Five research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat, PennyMac Financial Services currently has a consensus rating of "Moderate Buy" and a consensus target price of $118.67.

Insider Activity at PennyMac Financial Services

In related news, Director Joseph F. Mazzella sold 7,107 shares of the firm's stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $108.16, for a total value of $768,693.12. Following the completion of the transaction, the director directly owned 86,050 shares of the company's stock, valued at approximately $9,307,168. This trade represents a 7.63% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO David Spector sold 5,000 shares of the firm's stock in a transaction that occurred on Monday, August 18th. The stock was sold at an average price of $105.73, for a total transaction of $528,650.00. Following the completion of the transaction, the chief executive officer directly owned 130,604 shares of the company's stock, valued at approximately $13,808,760.92. This trade represents a 3.69% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 22,107 shares of company stock valued at $2,292,843. 15.80% of the stock is owned by insiders.

PennyMac Financial Services Stock Performance

Shares of NYSE:PFSI traded down $0.0880 during mid-day trading on Monday, reaching $109.6320. The company had a trading volume of 56,584 shares, compared to its average volume of 378,099. The company has a current ratio of 0.34, a quick ratio of 0.34 and a debt-to-equity ratio of 3.03. The firm has a market cap of $5.67 billion, a price-to-earnings ratio of 15.23 and a beta of 1.50. The company's 50-day moving average price is $99.81 and its 200-day moving average price is $98.88. PennyMac Financial Services, Inc. has a one year low of $85.74 and a one year high of $119.13.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last posted 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 company had revenue of $444.73 million during the quarter, compared to the consensus estimate 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% compared to the same quarter last year. During the same period last year, the firm posted $1.85 EPS. As a group, equities research analysts anticipate that PennyMac Financial Services, Inc. will post 13.77 EPS for the current fiscal year.

PennyMac Financial Services Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Wednesday, August 13th were issued a $0.30 dividend. The ex-dividend date of this dividend was Wednesday, August 13th. This represents a $1.20 annualized dividend and a yield of 1.1%. PennyMac Financial Services's dividend payout ratio (DPR) is 16.64%.

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.