UBS Group AG Sells 81,818 Shares of PennyMac Financial Services, Inc. $PFSI

Key Points

• UBS Group AG cut its stake in PennyMac Financial Services by 49.2% in the fourth quarter, selling 81,818 shares and leaving it with 84,539 shares worth about $11.1 million.
• Insiders were also selling, including CEO David Spector and insider Derek Stark, while insiders overall sold 61,280 shares last quarter.
• PFSI’s earnings missed estimates slightly in its latest report, and analysts currently have a mixed view: the stock carries an average Hold rating with a $122.75 price target.

UBS Group AG decreased its stake in PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) by 49.2% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 84,539 shares of the real estate investment trust's stock after selling 81,818 shares during the period. UBS Group AG owned about 0.16% of PennyMac Financial Services worth $11,146,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also added to or reduced their stakes in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in PennyMac Financial Services by 0.7% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 16,034 shares of the real estate investment trust's stock valued at $1,598,000 after purchasing an additional 111 shares during the last quarter. GAMMA Investing LLC lifted its stake in PennyMac Financial Services by 97.3% in the 4th quarter. GAMMA Investing LLC now owns 288 shares of the real estate investment trust's stock valued at $38,000 after purchasing an additional 142 shares during the last quarter. Sei Investments Co. lifted its stake in PennyMac Financial Services by 0.7% in the 3rd quarter. Sei Investments Co. now owns 22,145 shares of the real estate investment trust's stock valued at $2,743,000 after purchasing an additional 146 shares during the last quarter. CANADA LIFE ASSURANCE Co lifted its stake in PennyMac Financial Services by 1.0% in the 3rd quarter. CANADA LIFE ASSURANCE Co now owns 16,236 shares of the real estate investment trust's stock valued at $2,026,000 after purchasing an additional 163 shares during the last quarter. Finally, Arizona State Retirement System raised its stake in shares of PennyMac Financial Services by 1.8% during the third quarter. Arizona State Retirement System now owns 9,172 shares of the real estate investment trust's stock valued at $1,136,000 after acquiring an additional 166 shares during the last quarter. Institutional investors own 57.87% of the company's stock.

Insider Buying and Selling

In related news, CEO David Spector sold 12,436 shares of PennyMac Financial Services stock in a transaction on Friday, March 6th. The shares were sold at an average price of $86.39, for a total transaction of $1,074,346.04. Following the completion of the transaction, the chief executive officer owned 529,401 shares of the company's stock, valued at $45,734,952.39. This trade represents a 2.30% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, 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 transaction of $174,124.50. Following the transaction, the insider directly owned 22,477 shares of the company's stock, valued at $2,056,645.50. This represents a 7.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 61,280 shares of company stock valued at $5,510,753 over the last quarter. Insiders own 15.80% of the company's stock.

Analyst Upgrades and Downgrades

PFSI has been the subject of several analyst reports. Wall Street Zen raised shares of PennyMac Financial Services from a "sell" rating to a "hold" rating in a research note on Saturday, May 9th. Barclays dropped their price target on shares of PennyMac Financial Services from $116.00 to $107.00 and set an "overweight" rating for the company in a research note on Monday. Weiss Ratings downgraded shares of PennyMac Financial Services from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Wednesday, May 6th. Keefe, Bruyette & Woods dropped their price target on shares of PennyMac Financial Services from $115.00 to $108.00 and set an "outperform" rating for the company in a research note on Friday, May 8th. Finally, BTIG Research reaffirmed a "buy" rating on shares of PennyMac Financial Services in a research note on Friday, January 30th. Six analysts have rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $122.75.

PennyMac Financial Services Price Performance

PFSI stock opened at $85.63 on Friday. PennyMac Financial Services, Inc. has a 52-week low of $82.65 and a 52-week high of $160.36. The company has a fifty day moving average price of $88.74 and a 200-day moving average price of $111.74. The company has a market capitalization of $4.45 billion, a P/E ratio of 9.10, a PEG ratio of 0.57 and a beta of 1.49. The company has a debt-to-equity ratio of 3.63, a quick ratio of 0.34 and a current ratio of 0.33.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last announced its earnings results on Tuesday, May 5th. The real estate investment trust reported $2.19 earnings per share for the quarter, missing analysts' consensus estimates of $2.22 by ($0.03). PennyMac Financial Services had a return on equity of 10.93% and a net margin of 23.47%.The firm had revenue of $544.98 million for the quarter, compared to the consensus estimate of $546.17 million. During the same period in the prior year, the business earned $1.42 EPS. PennyMac Financial Services's quarterly revenue was up 26.5% on a year-over-year basis. As a group, equities analysts expect that PennyMac Financial Services, Inc. will post 10.68 EPS for the current year.

PennyMac Financial Services Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, May 28th. Investors of record on Monday, May 18th will be paid a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date of this dividend is Monday, May 18th. PennyMac Financial Services's dividend payout ratio (DPR) is currently 12.75%.

PennyMac Financial Services Company 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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