MFN Partners Management LP Makes New Investment in PennyMac Financial Services, Inc. $PFSI

MFN Partners Management LP bought a new stake in shares of PennyMac Financial Services, Inc. (NYSE:PFSI) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund bought 4,531,792 shares of the real estate investment trust’s stock, valued at approximately $394,719,083. PennyMac Financial Services makes up approximately 0.0% of MFN Partners Management LP’s holdings, 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 quarter.

A number of other institutional investors have also modified their holdings of PFSI. AQR Capital Management LLC lifted its stake in shares of PennyMac Financial Services by 3.8% in the 1st quarter. AQR Capital Management LLC now owns 24,012 shares of the real estate investment trust’s stock valued at $2,404,000 after purchasing an additional 875 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of PennyMac Financial Services by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,923 shares of the real estate investment trust’s stock valued at $1,594,000 after buying an additional 706 shares during the last quarter. Intech Investment Management LLC raised its stake in PennyMac Financial Services by 5.8% during the 1st quarter. Intech Investment Management LLC now owns 15,382 shares of the real estate investment trust’s stock valued at $1,540,000 after purchasing an additional 840 shares during the period. Strs Ohio bought a new position in shares of PennyMac Financial Services in the first quarter worth about $30,000. Finally, Prudential Financial Inc. grew its holdings in shares of PennyMac Financial Services by 82.8% in the 2nd quarter. Prudential Financial Inc. now owns 4,084 shares of the real estate investment trust’s stock worth $413,000 after purchasing an additional 1,850 shares during the last quarter. 57.87% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In other PennyMac Financial Services news, CAO Gregory L. Hendry sold 2,943 shares of the stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $81.71, for a total transaction of $240,472.53. Following the sale, the chief accounting officer directly owned 48,968 shares in the company, valued at $4,001,175.28. This represents a 5.67% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 15.20% of the company’s stock.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on PFSI shares. Keefe, Bruyette & Woods reduced their price target on shares of PennyMac Financial Services from $108.00 to $100.00 and set an “outperform” rating on the stock in a research report on Friday, July 31st. Wells Fargo & Company reduced their price objective on PennyMac Financial Services from $100.00 to $95.00 and set an “overweight” rating for the company in a research note on Thursday, July 30th. Wall Street Zen lowered PennyMac Financial Services from a “hold” rating to a “sell” rating in a research report on Saturday, August 1st. Barclays dropped their target price 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. Finally, BTIG Research dropped their price target on shares of PennyMac Financial Services from $105.00 to $90.00 and set a “buy” rating on the stock in a research note on Thursday, July 30th. Four research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, PennyMac Financial Services has an average rating of “Hold” and an average price target of $104.88.

PennyMac Financial Services Stock Performance

PennyMac Financial Services stock traded up $0.24 during mid-day trading on Friday, hitting $73.83. 164,594 shares of the company’s stock traded hands, compared to its average volume of 676,712. The stock has a market cap of $3.84 billion, a price-to-earnings ratio of 10.14, a P/E/G ratio of 0.69 and a beta of 1.45. The company has a debt-to-equity ratio of 3.22, a current ratio of 0.38 and a quick ratio of 0.38. The firm has a 50 day simple moving average of $80.52 and a two-hundred day simple moving average of $85.41. PennyMac Financial Services, Inc. has a fifty-two week low of $71.68 and a fifty-two week high of $160.36.

PennyMac Financial Services (NYSE:PFSI) last posted its quarterly earnings data 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 return on equity of 11.18% and a net margin of 17.74%.During the same period in the previous year, the firm posted $2.54 earnings per share. The firm’s revenue was up 11.8% on a year-over-year basis. On average, research analysts expect that PennyMac Financial Services, Inc. will post 7.36 EPS for the current fiscal year.

PennyMac Financial Services Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Monday, August 17th were given a $0.30 dividend. The ex-dividend date was 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 is 16.48%.

PennyMac Financial Services 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.