Insider Selling: PennyMac Financial Services (NYSE:PFSI) CFO Sells 2,925 Shares of Stock

Key Points

• PennyMac Financial Services CFO Daniel Stanley Perotti sold 2,925 shares of the company's stock at an average price of $116.63, resulting in a total transaction value of $341,142.75.
• The company reported a quarterly earnings miss with earnings per share of $1.02, falling short of analyst estimates by $1.99, while revenue was down from expectations at $444.73 million.
• The stock is currently rated as a Moderate Buy by analysts, with a consensus price target of $119.33, following recent upgrades from brokers including Keefe, Bruyette & Woods.

PennyMac Financial Services, Inc. (NYSE:PFSI - Get Free Report) CFO Daniel Stanley Perotti sold 2,925 shares of the firm's stock in a transaction on Friday, September 5th. The stock was sold at an average price of $116.63, for a total value of $341,142.75. Following the transaction, the chief financial officer owned 225,250 shares in the company, valued at $26,270,907.50. This trade represents a 1.28% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Daniel Stanley Perotti also recently made the following trade(s):

• On Tuesday, September 2nd, Daniel Stanley Perotti sold 5,850 shares of PennyMac Financial Services stock. The stock was sold at an average price of $108.20, for a total transaction of $632,970.00.

PennyMac Financial Services Stock Performance

Shares of PennyMac Financial Services stock traded up $3.53 during trading hours on Monday, reaching $121.02. The company's stock had a trading volume of 744,129 shares, compared to its average volume of 394,387. The stock has a market cap of $6.26 billion, a P/E ratio of 13.34 and a beta of 1.51. The company's 50 day simple moving average is $102.73 and its 200 day simple moving average is $99.52. PennyMac Financial Services, Inc. has a one year low of $85.74 and a one year high of $121.89. The company has a debt-to-equity ratio of 3.03, a quick ratio of 0.34 and a current ratio of 0.34.

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

PennyMac Financial Services Dividend Announcement

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

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on PFSI. Keefe, Bruyette & Woods increased their price objective on shares of PennyMac Financial Services from $117.00 to $121.00 and gave the stock an "outperform" rating in a report on Wednesday, September 3rd. Piper Sandler dropped their price target on shares of PennyMac Financial Services from $125.00 to $121.00 and set an "overweight" rating on the stock in a research note on Wednesday, July 23rd. Wells Fargo & Company assumed coverage on PennyMac Financial Services in a report on Monday, August 25th. They set an "overweight" rating and a $115.00 price target on the stock. Barclays decreased their price objective on PennyMac Financial Services from $124.00 to $119.00 and set an "overweight" rating for the company in a report on Tuesday, July 8th. Finally, UBS Group cut their target price 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. Five investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $119.33.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. T. Rowe Price Investment Management Inc. lifted its position in shares of PennyMac Financial Services by 0.6% during 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 acquiring an additional 24,055 shares during the last quarter. Invesco Ltd. raised its position in shares of PennyMac Financial Services by 4.5% during the first quarter. Invesco Ltd. now owns 1,237,118 shares of the real estate investment trust's stock worth $123,848,000 after purchasing an additional 53,660 shares during the period. Orbis Allan Gray Ltd lifted 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 last quarter. Millennium Management LLC boosted its position in shares of PennyMac Financial Services by 48.8% in the 1st quarter. Millennium Management LLC now owns 771,605 shares of the real estate investment trust's stock valued at $77,245,000 after purchasing an additional 253,031 shares during the period. Finally, Geode Capital Management LLC increased its stake in PennyMac Financial Services by 6.0% in the 2nd quarter. Geode Capital Management LLC now owns 721,757 shares of the real estate investment trust's stock worth $71,924,000 after purchasing an additional 41,124 shares in the last quarter. Institutional investors and hedge funds own 57.87% of the company's stock.

PennyMac Financial Services Company Profile

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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