EMG Holdings L.P. Boosts Holdings in PennyMac Financial Services, Inc. $PFSI

EMG Holdings L.P. lifted its position in shares of PennyMac Financial Services, Inc. (NYSE:PFSI) by 228.6% in the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 65,727 shares of the real estate investment trust’s stock after buying an additional 45,727 shares during the quarter. PennyMac Financial Services comprises 1.4% of EMG Holdings L.P.’s holdings, making the stock its 6th biggest position. EMG Holdings L.P. owned 0.13% of PennyMac Financial Services worth $5,745,000 at the end of the most recent quarter.

A number of other institutional investors also recently modified their holdings of PFSI. Norges Bank purchased a new stake in shares of PennyMac Financial Services during the 4th quarter worth about $44,287,000. Y Intercept Hong Kong Ltd increased its stake in shares of PennyMac Financial Services by 210.4% in the 1st quarter. Y Intercept Hong Kong Ltd now owns 43,605 shares of the real estate investment trust’s stock valued at $3,811,000 after purchasing an additional 29,557 shares in the last quarter. Dimensional Fund Advisors LP raised 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 worth $167,474,000 after purchasing an additional 126,902 shares during the period. Clough Capital Partners L P acquired a new position in PennyMac Financial Services in the 4th quarter worth about $5,391,000. Finally, Concentric Capital Strategies LP boosted its position in PennyMac Financial Services by 420.3% during the fourth quarter. Concentric Capital Strategies LP now owns 86,478 shares of the real estate investment trust’s stock worth $11,401,000 after purchasing an additional 69,858 shares in the last quarter. Institutional investors own 57.87% of the company’s stock.

Insiders Place Their Bets

In related news, CFO Daniel Stanley Perotti sold 2,925 shares of the company’s stock in a transaction dated 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 sale, the chief financial officer owned 210,625 shares of the company’s stock, valued at approximately $18,429,687.50. This represents a 1.37% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 completion of the sale, the chief accounting officer owned 48,968 shares of the company’s stock, valued at approximately $4,254,829.52. The trade was a 4.26% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 18,045 shares of company stock valued at $1,565,470 in the last 90 days. 15.80% of the stock is owned by insiders.

PennyMac Financial Services Trading Down 11.6%

PFSI stock opened at $76.08 on Friday. PennyMac Financial Services, Inc. has a 12-month low of $71.68 and a 12-month high of $160.36. The business’s 50-day moving average is $83.28 and its 200 day moving average is $93.62. 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 cap of $3.95 billion, a price-to-earnings ratio of 10.45, a PEG ratio of 0.61 and a beta of 1.44.

PennyMac Financial Services (NYSE:PFSI) last released its earnings results on Wednesday, July 29th. The real estate investment trust reported $1.39 earnings per share for the quarter, missing the consensus estimate of $2.11 by ($0.72). PennyMac Financial Services had a net margin of 17.74% and a return on equity of 11.21%. The firm had revenue of $566.00 million during the quarter, compared to analysts’ expectations of $571.60 million. During the same quarter last year, the business earned $2.54 EPS. The business’s revenue was up 11.8% compared to the same quarter last year. On average, sell-side analysts anticipate that PennyMac Financial Services, Inc. will post 9.77 EPS for the current fiscal year.

PennyMac Financial Services Announces Dividend

The firm also recently announced 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. This represents a $1.20 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend is Monday, August 17th. PennyMac Financial Services’s payout ratio is 12.75%.

Wall Street Analyst Weigh In

Several brokerages have commented on PFSI. BTIG Research set a $90.00 price objective on PennyMac Financial Services in a report on Thursday. Keefe, Bruyette & Woods reduced their target price on PennyMac Financial Services from $115.00 to $108.00 and set an “outperform” rating for the company in a research note on Friday, May 8th. Wall Street Zen upgraded PennyMac Financial Services from a “sell” rating to a “hold” rating in a research report on Saturday, May 9th. Piper Sandler cut shares of PennyMac Financial Services from an “overweight” rating to a “neutral” rating and dropped their price target for the company from $106.00 to $86.00 in a research note on Thursday. Finally, Barclays cut their price target on shares of PennyMac Financial Services from $93.00 to $85.00 and set an “equal weight” rating for the company in a report on Thursday. Four research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, PennyMac Financial Services presently has an average rating of “Hold” and a consensus price target of $105.88.

PennyMac Financial Services News Summary

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

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.