Insider Selling: PennyMac Financial Services (NYSE:PFSI) CEO Sells 5,000 Shares of Stock

Key Points

• PennyMac Financial Services CEO David Spector sold 5,000 shares at an average price of $122.97, totaling $614,850, resulting in a 3.83% reduction in his holdings.
• The company reported a loss in its quarterly earnings, with EPS of $1.02, missing estimates by $1.99, despite a 9.5% year-over-year revenue increase.
• PennyMac Financial Services announced a quarterly dividend of $0.30, yielding 1.0%, with a payout ratio of 16.64%.

PennyMac Financial Services, Inc. (NYSE:PFSI - Get Free Report) CEO David Spector sold 5,000 shares of the firm's stock in a transaction dated Tuesday, September 23rd. The stock was sold at an average price of $122.97, for a total transaction of $614,850.00. Following the transaction, the chief executive officer owned 125,604 shares of the company's stock, valued at approximately $15,445,523.88. This represents a 3.83% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website.

David Spector also recently made the following trade(s):

• On Monday, August 18th, David Spector sold 5,000 shares of PennyMac Financial Services stock. The stock was sold at an average price of $105.73, for a total transaction of $528,650.00.
• On Monday, July 7th, David Spector sold 5,000 shares of PennyMac Financial Services stock. The stock was sold at an average price of $100.81, for a total transaction of $504,050.00.

PennyMac Financial Services Trading Up 0.2%

Shares of NYSE:PFSI traded up $0.22 during mid-day trading on Wednesday, hitting $123.35. The company had a trading volume of 284,102 shares, compared to its average volume of 386,574. PennyMac Financial Services, Inc. has a one year low of $85.74 and a one year high of $130.02. The company has a debt-to-equity ratio of 3.03, a current ratio of 0.34 and a quick ratio of 0.34. The company has a market capitalization of $6.38 billion, a PE ratio of 17.11 and a beta of 1.51. The firm has a fifty day moving average price of $108.15 and a 200 day moving average price of $101.33.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last issued its quarterly earnings results on Tuesday, July 22nd. The real estate investment trust reported $1.02 EPS for the quarter, missing analysts' consensus estimates of $3.01 by ($1.99). PennyMac Financial Services had a net margin of 22.00% and a return on equity of 12.18%. The business had revenue of $444.73 million for the quarter, compared to the consensus estimate of $547.44 million. During the same quarter in the previous year, the business earned $1.85 earnings per share. The firm's revenue was up 9.5% on a year-over-year basis. As a group, research analysts forecast that PennyMac Financial Services, Inc. will post 13.77 EPS for the current year.

PennyMac Financial Services Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Shareholders of record on Wednesday, August 13th were paid a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 1.0%. The ex-dividend date was Wednesday, August 13th. PennyMac Financial Services's payout ratio is 16.64%.

Institutional Investors Weigh In On PennyMac Financial Services

A number of hedge funds have recently bought and sold shares of the business. T. Rowe Price Investment Management Inc. raised its position in shares of PennyMac Financial Services by 0.6% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 4,289,819 shares of the real estate investment trust's stock valued at $429,454,000 after purchasing an additional 24,055 shares during the last quarter. Invesco Ltd. boosted its stake in shares of PennyMac Financial Services by 4.5% during the 1st quarter. Invesco Ltd. now owns 1,237,118 shares of the real estate investment trust's stock valued at $123,848,000 after buying an additional 53,660 shares during the last quarter. Orbis Allan Gray Ltd increased its holdings in shares of PennyMac Financial Services by 447.5% during the first quarter. Orbis Allan Gray Ltd now owns 926,775 shares of the real estate investment trust's stock valued at $92,779,000 after purchasing an additional 757,489 shares during the period. Millennium Management LLC raised its position in PennyMac Financial Services by 48.8% in the first quarter. Millennium Management LLC now owns 771,605 shares of the real estate investment trust's stock worth $77,245,000 after acquiring an additional 253,031 shares in the last quarter. Finally, Geode Capital Management LLC increased its holdings in PennyMac Financial Services by 6.0% in the second quarter. Geode Capital Management LLC now owns 721,757 shares of the real estate investment trust's stock worth $71,924,000 after buying an additional 41,124 shares during the last quarter. Hedge funds and other institutional investors own 57.87% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on PFSI. UBS Group lowered their price objective on PennyMac Financial Services from $115.00 to $110.00 and set a "neutral" rating on the stock in a research note on Thursday, July 24th. Piper Sandler lowered their price target on PennyMac Financial Services from $125.00 to $121.00 and set an "overweight" rating for the company in a research report on Wednesday, July 23rd. Wells Fargo & Company began coverage on PennyMac Financial Services in a research report on Monday, August 25th. They set an "overweight" rating and a $115.00 price target on the stock. Barclays lowered their target price 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. Finally, Wall Street Zen lowered shares of PennyMac Financial Services from a "hold" rating to a "sell" rating in a report on Sunday. Five investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, PennyMac Financial Services currently has an average rating of "Moderate Buy" and a consensus price target of $119.33.

About PennyMac Financial Services

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.

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