T. Rowe Price Investment Management Inc. Cuts Stake in PennyMac Financial Services, Inc. $PFSI

T. Rowe Price Investment Management Inc. reduced its holdings in shares of PennyMac Financial Services, Inc. (NYSE:PFSI) by 3.7% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 3,603,567 shares of the real estate investment trust’s stock after selling 138,523 shares during the period. T. Rowe Price Investment Management Inc. owned about 0.07% of PennyMac Financial Services worth $475,095,000 at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. Vanguard Group Inc. boosted its stake in shares of 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 purchasing an additional 12,782 shares in the last quarter. Invesco Ltd. raised its position in PennyMac Financial Services by 7.3% in the 4th quarter. Invesco Ltd. now owns 1,569,184 shares of the real estate investment trust’s stock worth $206,881,000 after purchasing an additional 106,088 shares during the period. 140 Summer Partners LP raised its position in PennyMac Financial Services by 50.2% in the 4th quarter. 140 Summer Partners LP now owns 669,892 shares of the real estate investment trust’s stock worth $88,319,000 after purchasing an additional 223,752 shares during the period. Basswood Capital Management L.L.C. lifted its stake in PennyMac Financial Services by 5.9% in the second quarter. Basswood Capital Management L.L.C. now owns 570,210 shares of the real estate investment trust’s stock worth $56,816,000 after purchasing an additional 31,743 shares during the last quarter. Finally, American Century Companies Inc. lifted its stake in PennyMac Financial Services by 7.5% in the third quarter. American Century Companies Inc. now owns 429,403 shares of the real estate investment trust’s stock worth $53,195,000 after purchasing an additional 30,015 shares during the last quarter. 57.87% of the stock is owned by hedge funds and other institutional investors.

PennyMac Financial Services Trading Up 1.8%

PFSI opened at $82.63 on Friday. PennyMac Financial Services, Inc. has a one year low of $77.67 and a one year 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. The business has a 50 day simple moving average of $87.05 and a two-hundred day simple moving average of $104.09. The firm has a market capitalization of $4.29 billion, a price-to-earnings ratio of 8.78, a PEG ratio of 0.53 and a beta of 1.44.

PennyMac Financial Services (NYSE:PFSI) last issued its quarterly earnings data on Tuesday, May 5th. The real estate investment trust reported $2.19 earnings per share for the quarter, missing analysts’ consensus estimates of $2.22 by ($0.03). The business had revenue of $544.98 million during the quarter, compared to the consensus estimate of $546.17 million. PennyMac Financial Services had a return on equity of 10.93% and a net margin of 23.47%.PennyMac Financial Services’s quarterly revenue was up 26.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.42 earnings per share. Analysts predict that PennyMac Financial Services, Inc. will post 10.68 EPS for the current year.

PennyMac Financial Services Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, May 28th. Investors of record on Monday, May 18th were issued a $0.30 dividend. The ex-dividend date was Monday, May 18th. This represents a $1.20 annualized dividend and a yield of 1.5%. PennyMac Financial Services’s payout ratio is 12.75%.

Insiders Place Their Bets

In other news, CEO David Spector sold 10,000 shares of the company’s stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $87.99, for a total value of $879,900.00. Following the sale, the chief executive officer directly owned 60,604 shares of the company’s stock, valued at $5,332,545.96. This represents a 14.16% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel Stanley Perotti sold 2,925 shares of the stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $87.50, for a total transaction of $255,937.50. Following the completion of the transaction, the chief financial officer owned 210,625 shares of the company’s stock, valued at approximately $18,429,687.50. The trade was a 1.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 22,925 shares of company stock worth $2,064,138. Insiders own 15.80% of the company’s stock.

Analysts Set New Price Targets

PFSI has been the topic of a number of recent research reports. Zacks Research cut PennyMac Financial Services from a “hold” rating to a “strong sell” rating in a research note on Friday, May 8th. Weiss Ratings lowered PennyMac Financial Services from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Wednesday, May 6th. Wells Fargo & Company dropped their target price on PennyMac Financial Services from $110.00 to $100.00 and set an “overweight” rating for the company in a report on Wednesday, May 6th. Wall Street Zen upgraded PennyMac Financial Services from a “sell” rating to a “hold” rating in a research report on Saturday, May 9th. Finally, Piper Sandler decreased their price target on PennyMac Financial Services from $122.00 to $112.00 and set an “overweight” rating on the stock in a research note on Wednesday, May 6th. Six equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, PennyMac Financial Services has an average rating of “Hold” and a consensus target price of $117.12.

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.