Insider Selling: PennyMac Financial Services (NYSE:PFSI) CAO Sells $189,159.53 in Stock

Key Points

• CAO Gregory Hendry sold 2,177 shares of PennyMac Financial Services for about $189,159 at an average price of $86.89. The sale was made under a pre-arranged Rule 10b5-1 trading plan.
• PFSI shares were trading lower, down to $83.54 on the day, and remain well below their 52-week high of $160.36. The stock has a market cap of $4.34 billion and trades at a low earnings multiple.
• The company recently missed quarterly EPS and revenue estimates, though revenue still rose 26.5% year over year. PennyMac also paid a quarterly dividend of $0.30, equal to a 1.4% annualized yield.

PennyMac Financial Services, Inc. (NYSE:PFSI - Get Free Report) CAO Gregory Hendry sold 2,177 shares of the stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $86.89, for a total transaction of $189,159.53. Following the completion of the transaction, the chief accounting officer directly owned 48,968 shares of the company's stock, valued at $4,254,829.52. This trade represents a 4.26% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

PennyMac Financial Services Price Performance

Shares of PennyMac Financial Services stock traded down $1.29 during midday trading on Thursday, hitting $83.54. 548,240 shares of the company traded hands, compared to its average volume of 714,470. The firm's fifty day moving average price is $85.48 and its 200-day moving average price is $101.07. The stock has a market cap of $4.34 billion, a price-to-earnings ratio of 8.88, a PEG ratio of 0.57 and a beta of 1.44. PennyMac Financial Services, Inc. has a 12 month low of $77.67 and a 12 month high of $160.36. The company has a debt-to-equity ratio of 3.63, a quick ratio of 0.33 and a current ratio of 0.33.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last issued its quarterly earnings data 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). The company had revenue of $544.98 million during the quarter, compared to the consensus estimate of $546.17 million. PennyMac Financial Services had a net margin of 23.47% and a return on equity of 10.93%. PennyMac Financial Services's revenue for the quarter was up 26.5% on a year-over-year basis. During the same period in the previous year, the company earned $1.42 EPS. As a group, sell-side analysts forecast that PennyMac Financial Services, Inc. will post 10.68 earnings per share for the current year.

PennyMac Financial Services Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, May 28th. Stockholders of record on Monday, May 18th were paid a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date was Monday, May 18th. PennyMac Financial Services's dividend payout ratio is presently 12.75%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of PFSI. Hudson Bay Capital Management LP acquired a new position in shares of PennyMac Financial Services in the 3rd quarter valued at about $5,593,000. Picton Mahoney Asset Management grew its stake in PennyMac Financial Services by 554.1% during the third quarter. Picton Mahoney Asset Management now owns 28,872 shares of the real estate investment trust's stock worth $3,576,000 after purchasing an additional 24,458 shares during the period. 140 Summer Partners LP bought a new stake in PennyMac Financial Services in the third quarter worth approximately $55,268,000. Norges Bank bought a new stake in PennyMac Financial Services in the fourth quarter worth approximately $44,287,000. Finally, American Century Companies Inc. lifted its stake in PennyMac Financial Services by 7.5% in the third quarter. American Century Companies Inc. now owns 429,403 shares of the real estate investment trust's stock valued at $53,195,000 after buying an additional 30,015 shares during the period. 57.87% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on PFSI. Wall Street Zen upgraded PennyMac Financial Services from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. BTIG Research cut their price target on PennyMac Financial Services from $150.00 to $105.00 and set a "buy" rating on the stock in a research note on Tuesday, June 16th. Wells Fargo & Company reduced their price target on PennyMac Financial Services from $110.00 to $100.00 and set an "overweight" rating on the stock in a report on Wednesday, May 6th. Stephens initiated coverage on PennyMac Financial Services in a research note on Friday, April 24th. They issued an "equal weight" rating and a $100.00 price objective for the company. Finally, Zacks Research lowered shares of PennyMac Financial Services from a "hold" rating to a "strong sell" rating in a report on Friday, May 8th. Six analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, PennyMac Financial Services has a consensus rating of "Hold" and an average price target of $116.38.

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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