PennyMac Financial Services, Inc. (NYSE:PFSI) Sees Significant Growth in Short Interest

PennyMac Financial Services, Inc. (NYSE:PFSI) saw a significant growth in short interest in the month of February. As of February 13th, there was short interest totaling 1,965,915 shares, a growth of 48.1% from the January 29th total of 1,327,258 shares. Based on an average daily trading volume, of 1,550,167 shares, the days-to-cover ratio is currently 1.3 days. Currently, 4.5% of the company’s shares are short sold. Currently, 4.5% of the company’s shares are short sold. Based on an average daily trading volume, of 1,550,167 shares, the days-to-cover ratio is currently 1.3 days.

Insider Buying and Selling

In other news, CEO David Spector sold 10,000 shares of the stock in a transaction that occurred on Thursday, February 19th. The stock was sold at an average price of $94.50, for a total value of $945,000.00. Following the completion of the transaction, the chief executive officer owned 90,604 shares of the company’s stock, valued at approximately $8,562,078. This represents a 9.94% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Derek Stark sold 1,903 shares of the firm’s stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $91.50, for a total value of $174,124.50. Following the completion of the transaction, the insider owned 22,477 shares of the company’s stock, valued at approximately $2,056,645.50. The trade was a 7.81% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 36,308 shares of company stock valued at $4,236,500 over the last quarter. 15.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. 140 Summer Partners LP purchased a new stake in PennyMac Financial Services in the third quarter worth approximately $55,268,000. Norges Bank bought a new position in shares of PennyMac Financial Services during the 2nd quarter valued at $39,976,000. Goldentree Asset Management LP purchased a new position in shares of PennyMac Financial Services in the 2nd quarter worth $29,249,000. Two Sigma Investments LP grew its holdings in shares of PennyMac Financial Services by 1,148.7% in the third quarter. Two Sigma Investments LP now owns 310,919 shares of the real estate investment trust’s stock worth $38,517,000 after acquiring an additional 286,019 shares during the period. Finally, Holocene Advisors LP grew its holdings in shares of PennyMac Financial Services by 2,379.5% in the third quarter. Holocene Advisors LP now owns 245,268 shares of the real estate investment trust’s stock worth $30,384,000 after acquiring an additional 235,376 shares during the period. 57.87% of the stock is owned by hedge funds and other institutional investors.

PennyMac Financial Services Stock Down 1.4%

NYSE PFSI traded down $1.29 during mid-day trading on Tuesday, reaching $89.09. The stock had a trading volume of 203,611 shares, compared to its average volume of 962,620. PennyMac Financial Services has a 1 year low of $85.74 and a 1 year high of $160.36. The stock has a market cap of $4.65 billion, a PE ratio of 9.58, a price-to-earnings-growth ratio of 0.52 and a beta of 1.56. The company has a fifty day moving average price of $121.07 and a 200 day moving average price of $122.49. The company has a debt-to-equity ratio of 3.32, a current ratio of 0.34 and a quick ratio of 0.34.

PennyMac Financial Services (NYSE:PFSI) last issued its earnings results on Thursday, January 29th. The real estate investment trust reported $1.97 EPS for the quarter, missing the consensus estimate of $3.23 by ($1.26). The business had revenue of $538.01 million for the quarter, compared to analysts’ expectations of $639.81 million. PennyMac Financial Services had a net margin of 24.48% and a return on equity of 10.20%. The business’s revenue for the quarter was up 14.4% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.95 earnings per share. On average, research analysts expect that PennyMac Financial Services will post 13.77 earnings per share for the current year.

PennyMac Financial Services Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, February 26th. Shareholders of record on Monday, February 16th were paid a dividend of $0.30 per share. The ex-dividend date was Friday, February 13th. This represents a $1.20 annualized dividend and a yield of 1.3%. PennyMac Financial Services’s dividend payout ratio is currently 12.90%.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on PFSI. Zacks Research cut shares of PennyMac Financial Services from a “hold” rating to a “strong sell” rating in a report on Tuesday, February 3rd. Barclays dropped their price objective on shares of PennyMac Financial Services from $158.00 to $136.00 and set an “overweight” rating on the stock in a research note on Friday, January 30th. Weiss Ratings cut shares of PennyMac Financial Services from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, January 20th. Piper Sandler lowered their target price on shares of PennyMac Financial Services from $168.00 to $137.00 and set an “overweight” rating for the company in a report on Friday, January 30th. Finally, Jefferies Financial Group started coverage on PennyMac Financial Services in a research note on Friday, December 19th. They issued a “buy” rating and a $160.00 price target on the stock. Five analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $139.71.

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.