MFN Partners Management LP Buys Shares of 4,531,792 PennyMac Financial Services, Inc. $PFSI

MFN Partners Management LP bought a new stake in PennyMac Financial Services, Inc. (NYSE:PFSI) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm bought 4,531,792 shares of the real estate investment trust’s stock, valued at approximately $394,719,083,000. PennyMac Financial Services comprises about 8.2% of MFN Partners Management LP’s investment portfolio, making the stock its 5th biggest position. MFN Partners Management LP owned approximately 8.73% of PennyMac Financial Services at the end of the most recent reporting period.

Several other institutional investors also recently modified their holdings of PFSI. BlackRock Inc. bought a new stake in shares of PennyMac Financial Services during the second quarter worth approximately $202,735,000. Donald Smith & CO. Inc. bought a new position in PennyMac Financial Services in the second quarter valued at approximately $163,940,000. Norges Bank acquired a new stake in PennyMac Financial Services during the 4th quarter worth $44,287,000. Bank of New York Mellon Corp bought a new stake in shares of PennyMac Financial Services during the 2nd quarter valued at $26,424,000. Finally, Two Sigma Investments LP raised its position in shares of PennyMac Financial Services by 1,148.7% during the 3rd quarter. Two Sigma Investments LP now owns 310,919 shares of the real estate investment trust’s stock valued at $38,517,000 after acquiring an additional 286,019 shares during the last quarter. Institutional investors and hedge funds own 57.87% of the company’s stock.

PennyMac Financial Services Stock Down 0.8%

Shares of PFSI stock opened at $75.10 on Friday. The firm has a fifty day moving average of $81.20 and a 200-day moving average of $86.07. PennyMac Financial Services, Inc. has a 12-month low of $71.68 and a 12-month high of $160.36. The company has a market capitalization of $3.90 billion, a price-to-earnings ratio of 10.32, a P/E/G ratio of 0.71 and a beta of 1.45. The company has a quick ratio of 0.38, a current ratio of 0.38 and a debt-to-equity ratio of 3.22.

PennyMac Financial Services (NYSE:PFSI) last released its earnings results on Wednesday, July 29th. The real estate investment trust reported $1.39 EPS 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 11.18%. During the same period in the prior year, the firm posted $2.54 earnings per share. The company’s revenue was up 11.8% on a year-over-year basis. As a group, equities research analysts predict that PennyMac Financial Services, Inc. will post 7.36 earnings per share for the current fiscal year.

PennyMac Financial Services Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Stockholders of record on Monday, August 17th will be issued a $0.30 dividend. The ex-dividend date is Monday, August 17th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.6%. PennyMac Financial Services’s dividend payout ratio (DPR) is 16.48%.

Insider Activity at PennyMac Financial Services

In other news, CAO Gregory L. Hendry sold 2,177 shares of the business’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $86.89, for a total value of $189,159.53. Following the sale, the chief accounting officer owned 48,968 shares of the company’s stock, valued at $4,254,829.52. The trade was a 4.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 15.20% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

PFSI has been the topic of several recent research reports. Weiss Ratings restated a “sell (d+)” rating on shares of PennyMac Financial Services in a research report on Monday, August 3rd. Barclays dropped their price objective on PennyMac Financial Services from $93.00 to $85.00 and set an “equal weight” rating for the company in a report on Thursday, July 30th. Stephens cut their target price on PennyMac Financial Services from $91.00 to $78.00 and set an “equal weight” rating on the stock in a research note on Thursday, July 30th. Wells Fargo & Company reduced their target price on PennyMac Financial Services from $100.00 to $95.00 and set an “overweight” rating on the stock in a report on Thursday, July 30th. Finally, Wall Street Zen lowered PennyMac Financial Services from a “hold” rating to a “sell” rating in a research report on Saturday, August 1st. Four analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $104.88.

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.