Vanguard Group Inc. Boosts Stake in PennyMac Financial Services, Inc. $PFSI

Key Points

• Vanguard Group Inc. boosted its stake in PennyMac Financial Services (NYSE: PFSI) by 0.5% in Q4 to 2,832,737 shares, representing about 5.45% of the company and valued at roughly $373.5 million.
• PennyMac reported Q1 EPS of $2.19 (missed estimates by $0.03) and revenue of $544.98M, up 26.5% year‑over‑year; the firm announced a $0.30 quarterly dividend ($1.20 annual, ~1.4% yield) and analysts expect about 12.05 EPS for the year with a consensus price target of $124.75.
• Insiders have sold 51,280 shares (~$4.63M) in the last three months, though corporate insiders still own 15.8% of the stock and institutional investors hold ~57.87%, with firms like Invesco and Two Sigma notably increasing positions.

Vanguard Group Inc. boosted its position in shares of PennyMac Financial Services, Inc. (NYSE:PFSI - Free Report) by 0.5% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 2,832,737 shares of the real estate investment trust's stock after buying an additional 12,782 shares during the period. Vanguard Group Inc. owned approximately 5.45% of PennyMac Financial Services worth $373,468,000 as of its most recent SEC filing.

Other institutional investors have also added to or reduced their stakes in the company. 140 Summer Partners LP bought a new stake in PennyMac Financial Services in the 3rd quarter worth approximately $55,268,000. Two Sigma Investments LP grew its holdings in shares of PennyMac Financial Services by 1,148.7% in the third quarter. Two Sigma Investments LP now owns 310,919 shares of the real estate investment trust's stock valued at $38,517,000 after purchasing an additional 286,019 shares in the last quarter. Holocene Advisors LP grew its holdings in shares of PennyMac Financial Services by 2,379.5% in the third quarter. Holocene Advisors LP now owns 245,268 shares of the real estate investment trust's stock valued at $30,384,000 after purchasing an additional 235,376 shares in the last quarter. Invesco Ltd. increased its position in PennyMac Financial Services by 18.3% in the third quarter. Invesco Ltd. now owns 1,463,096 shares of the real estate investment trust's stock worth $181,248,000 after purchasing an additional 226,581 shares during the last quarter. Finally, Balyasny Asset Management L.P. increased its position in PennyMac Financial Services by 145.1% in the second quarter. Balyasny Asset Management L.P. now owns 286,123 shares of the real estate investment trust's stock worth $28,509,000 after purchasing an additional 169,395 shares during the last quarter. Hedge funds and other institutional investors own 57.87% of the company's stock.

PennyMac Financial Services Trading Down 0.5%

Shares of PFSI opened at $87.01 on Thursday. The company's fifty day simple moving average is $89.19 and its 200-day simple moving average is $113.48. The company has a market cap of $4.54 billion, a P/E ratio of 9.25, a P/E/G ratio of 0.50 and a beta of 1.49. The company has a current ratio of 0.34, a quick ratio of 0.34 and a debt-to-equity ratio of 3.32. PennyMac Financial Services, Inc. has a twelve month low of $82.65 and a twelve month high of $160.36.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The real estate investment trust reported $2.19 EPS for the quarter, missing the consensus estimate of $2.22 by ($0.03). PennyMac Financial Services had a net margin of 23.47% and a return on equity of 11.02%. The firm had revenue of $544.98 million for the quarter, compared to the consensus estimate of $546.17 million. During the same quarter in the previous year, the company posted $1.42 earnings per share. The business's revenue for the quarter was up 26.5% on a year-over-year basis. As a group, analysts expect that PennyMac Financial Services, Inc. will post 12.05 EPS for the current year.

PennyMac Financial Services Announces Dividend

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

Insiders Place Their Bets

In related news, insider Derek Stark sold 1,066 shares of the firm's stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $87.66, for a total transaction of $93,445.56. Following the completion of the sale, the insider directly owned 20,944 shares of the company's stock, valued at approximately $1,835,951.04. This trade represents a 4.84% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Daniel Stanley Perotti sold 2,925 shares of the business's stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $93.30, for a total value of $272,902.50. Following the transaction, the chief financial officer owned 213,550 shares of the company's stock, valued at approximately $19,924,215. The trade was a 1.35% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 51,280 shares of company stock valued at $4,630,853. Corporate insiders own 15.80% of the company's stock.

Analyst Upgrades and Downgrades

PFSI has been the subject of several research reports. Stephens assumed coverage on shares of PennyMac Financial Services in a research report on Friday, April 24th. They set an "equal weight" rating and a $100.00 price objective for the company. Wall Street Zen cut shares of PennyMac Financial Services from a "hold" rating to a "sell" rating in a research report on Saturday, April 11th. Barclays lowered their price target on shares of PennyMac Financial Services from $136.00 to $116.00 and set an "overweight" rating for the company in a report on Monday, April 6th. Wells Fargo & Company reduced their price objective on PennyMac Financial Services from $110.00 to $100.00 and set an "overweight" rating on the stock in a research note on Wednesday. Finally, Keefe, Bruyette & Woods upgraded PennyMac Financial Services from a "market perform" rating to an "outperform" rating and set a $115.00 price objective on the stock in a research report on Monday, March 16th. Six investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $124.75.

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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