EMG Holdings L.P. lifted its stake in shares of PennyMac Financial Services, Inc. (NYSE:PFSI – Free Report) by 228.6% during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 65,727 shares of the real estate investment trust’s stock after acquiring an additional 45,727 shares during the period. PennyMac Financial Services accounts for approximately 1.4% of EMG Holdings L.P.’s portfolio, making the stock its 6th biggest position. EMG Holdings L.P.’s holdings in PennyMac Financial Services were worth $5,745,000 at the end of the most recent reporting period.
Other institutional investors and hedge funds have also recently modified their holdings of the company. Vanguard Group Inc. increased its position in PennyMac Financial Services by 0.5% during the fourth quarter. Vanguard Group Inc. now owns 2,832,737 shares of the real estate investment trust’s stock worth $373,468,000 after purchasing an additional 12,782 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in PennyMac Financial Services by 7.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,916,271 shares of the real estate investment trust’s stock valued at $167,474,000 after purchasing an additional 126,902 shares during the last quarter. Invesco Ltd. grew its stake in shares of 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 valued at $206,881,000 after buying an additional 106,088 shares during the period. 140 Summer Partners LP increased its holdings in shares of PennyMac Financial Services by 50.2% during 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 buying an additional 223,752 shares during the last quarter. Finally, Basswood Capital Management L.L.C. increased its holdings in shares of PennyMac Financial Services by 5.9% during the 2nd 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 buying an additional 31,743 shares during the last quarter. Institutional investors and hedge funds own 57.87% of the company’s stock.
Key PennyMac Financial Services News
Here are the key news stories impacting PennyMac Financial Services this week:
- Positive Sentiment: Wells Fargo lowered its price target from $100 to $95 but maintained an “overweight” rating, implying substantial potential upside from current levels. Benzinga analyst update
- Positive Sentiment: PennyMac declared a quarterly dividend of $0.30 per share. Investors of record on August 17 will receive payment on August 27; the dividend represents an annualized yield of approximately 1.4%. PennyMac dividend announcement
- Neutral Sentiment: Second-quarter revenue increased 11.8% year over year to $566 million, showing continued top-line growth, although it fell short of the $571.6 million analyst consensus. PennyMac second-quarter results
- Negative Sentiment: Adjusted earnings came in at $1.39 per share, well below estimates ranging from $2.08 to $2.11. The miss was the primary negative catalyst, particularly as earnings were also below the year-earlier level reported by the company. PennyMac earnings and revenue miss
- Negative Sentiment: Two law firms announced investigations into potential securities-law violations and allegations that PennyMac may have provided materially misleading information, including issues related to refinancing. These announcements add headline and potential litigation risk, although no wrongdoing has been established. Rosen Law Firm investigation
Wall Street Analyst Weigh In
View Our Latest Stock Report on PFSI
PennyMac Financial Services Trading Down 11.6%
Shares of NYSE PFSI opened at $76.08 on Friday. The company has a current ratio of 0.33, a quick ratio of 0.33 and a debt-to-equity ratio of 3.63. The stock has a market capitalization of $3.95 billion, a PE ratio of 10.45, a PEG ratio of 0.61 and a beta of 1.44. PennyMac Financial Services, Inc. has a twelve month low of $71.68 and a twelve month high of $160.36. The stock has a fifty day simple moving average of $83.28 and a 200-day simple moving average of $93.62.
PennyMac Financial Services (NYSE:PFSI – Get Free Report) last posted its earnings results on Wednesday, July 29th. The real estate investment trust reported $1.39 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.11 by ($0.72). PennyMac Financial Services had a return on equity of 11.21% and a net margin of 17.74%.The firm had revenue of $566.00 million for the quarter, compared to analyst estimates of $571.60 million. During the same period in the previous year, the company posted $2.54 EPS. PennyMac Financial Services’s revenue was up 11.8% on a year-over-year basis. On average, equities analysts forecast that PennyMac Financial Services, Inc. will post 9.77 earnings per share for the current year.
PennyMac Financial Services Announces Dividend
The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 27th. Shareholders of record on Monday, August 17th will be paid a dividend of $0.30 per share. The ex-dividend date is Monday, August 17th. This represents a $1.20 dividend on an annualized basis and a yield of 1.6%. PennyMac Financial Services’s dividend payout ratio is 12.75%.
Insider Transactions at PennyMac Financial Services
In other news, CAO Gregory L. Hendry sold 2,177 shares of the stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $86.89, for a total transaction of $189,159.53. Following the sale, the chief accounting officer owned 48,968 shares of the company’s stock, valued at approximately $4,254,829.52. This represents a 4.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 firm’s stock in a transaction that occurred on Friday, May 15th. The shares were 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 directly 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 position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 18,045 shares of company stock valued at $1,565,470. 15.80% of the stock is currently owned by corporate insiders.
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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