T. Rowe Price Investment Management Inc. Raises Holdings in 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. raised its stake in shares of PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) by 0.6% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 4,289,819 shares of the real estate investment trust's stock after buying an additional 24,055 shares during the period. T. Rowe Price Investment Management Inc. owned about 8.30% of PennyMac Financial Services worth $429,454,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently modified their holdings of the company. CWM LLC grew its holdings in shares of PennyMac Financial Services by 71.5% in the first quarter. CWM LLC now owns 271 shares of the real estate investment trust's stock worth $27,000 after acquiring an additional 113 shares during the period. TD Waterhouse Canada Inc. purchased a new position in PennyMac Financial Services in the fourth quarter worth about $39,000. Sterling Capital Management LLC grew its stake in shares of PennyMac Financial Services by 601.8% during the 4th quarter. Sterling Capital Management LLC now owns 400 shares of the real estate investment trust's stock valued at $41,000 after purchasing an additional 343 shares during the period. Aquatic Capital Management LLC bought a new stake in shares of PennyMac Financial Services during the 4th quarter valued at about $71,000. Finally, Xponance Inc. purchased a new stake in shares of PennyMac Financial Services during the 1st quarter valued at about $202,000. 57.87% of the stock is owned by institutional investors.

Insider Buying and Selling at PennyMac Financial Services

In related news, CEO David Spector sold 5,000 shares of PennyMac Financial Services stock in a transaction dated Monday, August 18th. The shares were 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. The trade was a 3.69% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Joseph F. Mazzella sold 7,107 shares of PennyMac Financial Services stock in a transaction dated Wednesday, August 13th. The stock was 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 approximately $9,307,168. This represents a 7.63% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 22,107 shares of company stock worth $2,292,843. Insiders own 15.80% of the company's stock.

PennyMac Financial Services Price Performance

PFSI traded up $6.3690 during trading hours on Friday, hitting $109.7590. The company's stock had a trading volume of 562,606 shares, compared to its average volume of 397,716. The business's 50-day moving average price is $99.81 and its 200-day moving average price is $98.96. PennyMac Financial Services, Inc. has a 12 month low of $85.74 and a 12 month high of $119.13. The stock has a market cap of $5.68 billion, a price-to-earnings ratio of 15.22 and a beta of 1.50. The company has a current ratio of 0.34, a quick ratio of 0.34 and a debt-to-equity ratio of 3.03.

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 earnings per share for the quarter, missing the consensus estimate of $3.01 by ($1.99). PennyMac Financial Services had a return on equity of 12.18% and a net margin of 22.00%.The business had revenue of $444.73 million during the quarter, compared to the consensus estimate of $547.44 million. During the same quarter in the prior year, the firm posted $1.85 EPS. The company's revenue for the quarter was up 9.5% on a year-over-year basis. Sell-side analysts expect that PennyMac Financial Services, Inc. will post 13.77 earnings per share for the current fiscal year.

PennyMac Financial Services Announces Dividend

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

Analysts Set New Price Targets

A number of analysts have commented on PFSI shares. UBS Group reduced their target price on shares of PennyMac Financial Services from $115.00 to $110.00 and set a "neutral" rating for the company in a report on Thursday, July 24th. Barclays decreased 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 report on Tuesday, July 8th. Wall Street Zen upgraded shares of PennyMac Financial Services from a "sell" rating to a "hold" rating in a research report on Friday. Wells Fargo & Company decreased 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 report on Wednesday, July 23rd. Finally, Keefe, Bruyette & Woods decreased 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. Five analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price 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.