The Manufacturers Life Insurance Company Acquires Shares of 19,665 PennyMac Financial Services, Inc. $PFSI

Key Points

• The Manufacturers Life Insurance Company acquired 19,665 PennyMac Financial Services shares during the second quarter, valued at approximately $1.7 million. Institutional investors and hedge funds collectively own 57.87% of PFSI.
• Analyst sentiment has weakened, with several firms lowering price targets or downgrading the stock. PFSI carries a consensus “Hold” rating and an average target price of $104.88.
• PennyMac reported quarterly EPS of $1.39, missing the $2.11 consensus estimate, although revenue increased 11.8% year over year. The company paid a quarterly dividend of $0.30 per share, representing a 1.6% yield.

The Manufacturers Life Insurance Company acquired a new position in shares of PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm acquired 19,665 shares of the real estate investment trust's stock, valued at approximately $1,713,000.

A number of other hedge funds and other institutional investors also recently modified their holdings of the company. Donald Smith & CO. Inc. bought a new position in PennyMac Financial Services during the second quarter worth about $163,940,000. Norges Bank bought a new stake in PennyMac Financial Services in the 4th quarter valued at about $44,287,000. Dimensional Fund Advisors LP boosted its holdings in PennyMac Financial Services by 7.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,916,271 shares of the real estate investment trust's stock valued at $167,474,000 after purchasing an additional 126,902 shares during the period. BlackRock Inc. acquired a new position in shares of PennyMac Financial Services during the 2nd quarter worth approximately $202,735,000. Finally, Y Intercept Hong Kong Ltd grew its position in shares of PennyMac Financial Services by 210.4% during the 1st quarter. Y Intercept Hong Kong Ltd now owns 43,605 shares of the real estate investment trust's stock worth $3,811,000 after purchasing an additional 29,557 shares in the last quarter. Institutional investors and hedge funds own 57.87% of the company's stock.

Insider Activity

In other news, CAO Gregory Hendry sold 2,943 shares of PennyMac Financial Services stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $81.71, for a total transaction of $240,472.53. Following the transaction, the chief accounting officer owned 48,968 shares in the company, valued at approximately $4,001,175.28. The trade was a 5.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 15.20% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on the company. Barclays reduced their target price on PennyMac Financial Services from $93.00 to $85.00 and set an "equal weight" rating on the stock in a report on Thursday, July 30th. Zacks Research cut shares of PennyMac Financial Services from a "hold" rating to a "strong sell" rating in a research report on Friday, May 8th. Wall Street Zen downgraded shares of PennyMac Financial Services from a "hold" rating to a "sell" rating in a research note on Saturday, August 1st. Piper Sandler lowered shares of PennyMac Financial Services from an "overweight" rating to a "neutral" rating and decreased their target price for the company from $106.00 to $86.00 in a report on Thursday, July 30th. Finally, Weiss Ratings restated a "sell (d+)" rating on shares of PennyMac Financial Services in a research report on Monday, August 3rd. Four equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, PennyMac Financial Services presently has a consensus rating of "Hold" and an average target price of $104.88.

PennyMac Financial Services Stock Performance

NYSE:PFSI opened at $73.14 on Friday. The stock's 50-day moving average is $79.57 and its 200-day moving average is $84.71. PennyMac Financial Services, Inc. has a 1-year low of $70.67 and a 1-year high of $160.36. The company has a current ratio of 0.38, a quick ratio of 0.38 and a debt-to-equity ratio of 3.22. The stock has a market cap of $3.80 billion, a P/E ratio of 10.05, a price-to-earnings-growth ratio of 0.68 and a beta of 1.44.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The real estate investment trust reported $1.39 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.11 by ($0.72). PennyMac Financial Services had a net margin of 17.74% and a return on equity of 11.18%. During the same quarter in the prior year, the business posted $2.54 earnings per share. The business's revenue for the quarter was up 11.8% compared to the same quarter last year. Equities research analysts anticipate that PennyMac Financial Services, Inc. will post 7.36 earnings per share for the current year.

PennyMac Financial Services Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Monday, August 17th were given a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 1.6%. The ex-dividend date was Monday, August 17th. PennyMac Financial Services's dividend payout ratio is 16.48%.

PennyMac Financial Services Profile

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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