Investors Buy High Volume of PennyMac Financial Services Put Options (NYSE:PFSI)

PennyMac Financial Services, Inc. (NYSE:PFSI) was the target of unusually large options trading on Friday. Investors bought 3,076 put options on the stock. This is an increase of 566% compared to the typical daily volume of 462 put options.

PennyMac Financial Services Stock Performance

PFSI traded down $50.74 on Friday, reaching $98.96. 1,822,697 shares of the stock were exchanged, compared to its average volume of 532,734. The company has a debt-to-equity ratio of 3.01, a current ratio of 0.36 and a quick ratio of 0.36. The company’s 50-day moving average price is $137.97 and its 200 day moving average price is $123.00. The firm has a market capitalization of $5.14 billion, a PE ratio of 10.50, a PEG ratio of 0.67 and a beta of 1.57. PennyMac Financial Services has a fifty-two week low of $85.74 and a fifty-two week high of $160.36.

PennyMac Financial Services (NYSE:PFSI) last released its earnings results on Thursday, January 29th. The real estate investment trust reported $1.97 EPS for the quarter, missing analysts’ consensus estimates of $3.23 by ($1.26). PennyMac Financial Services had a return on equity of 11.69% and a net margin of 25.21%.The firm had revenue of $538.01 million for the quarter, compared to analyst estimates of $639.81 million. During the same period last year, the firm earned $1.95 EPS. The company’s revenue for the quarter was up 14.4% compared to the same quarter last year. As a group, sell-side analysts forecast that PennyMac Financial Services will post 13.77 EPS for the current fiscal year.

PennyMac Financial Services Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, February 26th. Investors of record on Monday, February 16th will be given a $0.30 dividend. The ex-dividend date of this dividend is Friday, February 13th. This represents a $1.20 dividend on an annualized basis and a yield of 1.2%. PennyMac Financial Services’s payout ratio is 12.93%.

PennyMac Financial Services News Roundup

Here are the key news stories impacting PennyMac Financial Services this week:

• Positive Sentiment: PennyMac declared a $0.30 quarterly cash dividend, payable Feb 26 to holders of record Feb 16 — a signal of continued shareholder returns. PennyMac Reports Fourth Quarter and Full‑Year 2025 Results
• Positive Sentiment: Company reported year‑over‑year revenue growth (up ~14.4%) and a small increase in book value per share (to $82.77), which supports underlying franchise strength despite the quarter’s misses. PennyMac Reports Fourth Quarter and Full‑Year 2025 Results
• Neutral Sentiment: Brokerage coverage remains constructive at a consensus “Moderate Buy,” which could limit downside if fundamentals stabilize and margins recover. Consensus Rating Article
• Neutral Sentiment: Management hosted an earnings call and the transcript/highlights are available for detail on margin drivers, reserve assumptions and capital deployment plans — useful for assessing whether the margin pressure is temporary. Earnings Call Highlights
• Negative Sentiment: Q4 EPS missed by $1.26 and revenue missed by ~$101.8M vs. consensus; Seeking Alpha and other outlets report shares dropped sharply as management flagged pressured margins — the primary driver of today’s share decline. Shares Sink After Earnings Miss
• Negative Sentiment: Multiple news outlets (Zacks, Yahoo, MarketBeat summaries) emphasize the magnitude of the miss and lower near‑term profitability, increasing uncertainty around near‑term earnings and valuation multiples. Earnings Miss Coverage

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the company. Weiss Ratings downgraded PennyMac Financial Services from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, January 20th. Keefe, Bruyette & Woods upped their price objective on shares of PennyMac Financial Services from $138.00 to $143.00 and gave the stock a “market perform” rating in a research report on Thursday, December 18th. Jefferies Financial Group began coverage on shares of PennyMac Financial Services in a research note on Friday, December 19th. They issued a “buy” rating and a $160.00 price target for the company. Wells Fargo & Company reduced their target price on PennyMac Financial Services from $150.00 to $135.00 and set an “overweight” rating on the stock in a research note on Friday. Finally, BTIG Research reiterated a “buy” rating on shares of PennyMac Financial Services in a research report on Friday. Five investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $146.86.

Insiders Place Their Bets

In related news, CEO David Spector sold 10,000 shares of the company’s stock in a transaction dated Tuesday, January 13th. The shares were sold at an average price of $145.19, for a total transaction of $1,451,900.00. Following the transaction, the chief executive officer owned 100,604 shares in the company, valued at $14,606,694.76. This represents a 9.04% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Daniel Stanley Perotti sold 8,775 shares of the business’s stock in a transaction dated Monday, November 17th. The stock was sold at an average price of $126.67, for a total transaction of $1,111,529.25. Following the completion of the transaction, the chief financial officer directly owned 216,475 shares of the company’s stock, valued at approximately $27,420,888.25. This represents a 3.90% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 80,076 shares of company stock valued at $10,512,190 in the last 90 days. Insiders own 15.80% of the company’s stock.

Institutional Trading of PennyMac Financial Services

Several institutional investors and hedge funds have recently bought and sold shares of PFSI. M&T Bank Corp purchased a new position in PennyMac Financial Services during the 4th quarter worth $216,000. Pictet Asset Management Holding SA grew its holdings in shares of PennyMac Financial Services by 8.3% during the fourth quarter. Pictet Asset Management Holding SA now owns 5,189 shares of the real estate investment trust’s stock worth $684,000 after buying an additional 397 shares during the last quarter. Vanguard Group Inc. increased its position in PennyMac Financial Services by 0.5% in the 4th quarter. Vanguard Group Inc. now owns 2,832,737 shares of the real estate investment trust’s stock valued at $373,468,000 after acquiring an additional 12,782 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in PennyMac Financial Services during the fourth quarter worth about $242,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank boosted its holdings in PennyMac Financial Services by 3.7% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 10,345 shares of the real estate investment trust’s stock valued at $1,364,000 after purchasing an additional 372 shares in the last quarter. Hedge funds and other institutional investors own 57.87% of the company’s stock.

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.