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

Key Points

• CFO Daniel Stanley Perotti sold 2,925 shares of PennyMac Financial Services on May 15 at an average price of $87.50, totaling about $255,938. The sale reduced his ownership by 1.37% and was made under a pre-arranged Rule 10b5-1 trading plan.
• PFSI shares rose 0.9% to $86.43 in Monday trading, but the stock remains well below its 200-day moving average and near its 52-week low. The company has a market cap of about $4.49 billion and a P/E ratio of 9.18.
• Recent fundamentals were mixed: PennyMac reported quarterly EPS of $2.19, missing estimates by a small margin, while revenue came in slightly below expectations. The company also declared a quarterly dividend of $0.30 per share, and analysts currently have a consensus Hold rating.

PennyMac Financial Services, Inc. (NYSE:PFSI - Get Free Report) CFO Daniel Stanley Perotti sold 2,925 shares of PennyMac Financial Services stock in a transaction on Friday, May 15th. The shares were sold at an average price of $87.50, for a total value of $255,937.50. Following the completion of the sale, the chief financial officer directly owned 210,625 shares of the company's stock, valued at $18,429,687.50. This trade represents a 1.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

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

• On Tuesday, February 17th, Daniel Stanley Perotti sold 2,925 shares of PennyMac Financial Services stock. The shares were sold at an average price of $93.30, for a total value of $272,902.50.

PennyMac Financial Services Trading Up 0.9%

Shares of NYSE PFSI traded up $0.74 during midday trading on Monday, hitting $86.43. The stock had a trading volume of 376,503 shares, compared to its average volume of 757,550. The company's 50-day simple moving average is $88.74 and its 200 day simple moving average is $111.59. The firm has a market cap of $4.49 billion, a P/E ratio of 9.18, a price-to-earnings-growth ratio of 0.56 and a beta of 1.49. PennyMac Financial Services, Inc. has a fifty-two week low of $82.65 and a fifty-two week high of $160.36. The company has a debt-to-equity ratio of 3.63, a current ratio of 0.33 and a quick ratio of 0.33.

PennyMac Financial Services (NYSE:PFSI - Get Free Report) last released its 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). The firm had revenue of $544.98 million during the quarter, compared to analyst estimates of $546.17 million. PennyMac Financial Services had a net margin of 23.47% and a return on equity of 10.93%. The firm's quarterly revenue was up 26.5% on a year-over-year basis. During the same period last year, the business posted $1.42 earnings per share. Research analysts anticipate that PennyMac Financial Services, Inc. will post 10.68 EPS for the current year.

PennyMac Financial Services Announces Dividend

The business also recently disclosed 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. 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 payout ratio is 12.75%.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on PFSI. Zacks Research cut PennyMac Financial Services from a "hold" rating to a "strong sell" rating in a research note on Friday, May 8th. Wells Fargo & Company decreased their price objective on PennyMac Financial Services from $110.00 to $100.00 and set an "overweight" rating for the company in a research note on Wednesday, May 6th. Piper Sandler decreased their price objective on PennyMac Financial Services from $122.00 to $112.00 and set an "overweight" rating for the company in a research note on Wednesday, May 6th. Barclays decreased their price objective on PennyMac Financial Services from $116.00 to $107.00 and set an "overweight" rating for the company in a research note on Monday, May 11th. Finally, Weiss Ratings cut PennyMac Financial Services from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Wednesday, May 6th. Six analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $122.75.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in PennyMac Financial Services by 0.7% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 16,034 shares of the real estate investment trust's stock worth $1,598,000 after acquiring an additional 111 shares in the last quarter. GAMMA Investing LLC lifted its holdings in PennyMac Financial Services by 97.3% during the fourth quarter. GAMMA Investing LLC now owns 288 shares of the real estate investment trust's stock worth $38,000 after acquiring an additional 142 shares in the last quarter. Sei Investments Co. lifted its holdings in PennyMac Financial Services by 0.7% during the third quarter. Sei Investments Co. now owns 22,145 shares of the real estate investment trust's stock worth $2,743,000 after acquiring an additional 146 shares in the last quarter. CANADA LIFE ASSURANCE Co lifted its holdings in PennyMac Financial Services by 1.0% during the third quarter. CANADA LIFE ASSURANCE Co now owns 16,236 shares of the real estate investment trust's stock worth $2,026,000 after acquiring an additional 163 shares in the last quarter. Finally, Cerity Partners LLC lifted its holdings in PennyMac Financial Services by 7.3% during the fourth quarter. Cerity Partners LLC now owns 2,399 shares of the real estate investment trust's stock worth $316,000 after acquiring an additional 164 shares in the last quarter. 57.87% of the stock is currently owned by institutional investors.

About PennyMac Financial Services

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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