Palisade Capital Management LP Makes New Investment in PennyMac Financial Services, Inc. $PFSI

Palisade Capital Management LP purchased a new stake in shares of PennyMac Financial Services, Inc. (NYSE:PFSI) in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm purchased 50,121 shares of the real estate investment trust’s stock, valued at approximately $4,366,000.

A number of other hedge funds have also bought and sold shares of the business. MFN Partners Management LP purchased a new position in PennyMac Financial Services in the second quarter worth $394,719,083,000. Vanguard Group Inc. raised its stake in shares of PennyMac Financial Services by 0.5% during the 4th 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 period. BlackRock Inc. bought a new stake in shares of PennyMac Financial Services during the 2nd quarter worth $202,735,000. Dimensional Fund Advisors LP boosted its holdings in shares of 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 buying an additional 126,902 shares during the last quarter. Finally, Donald Smith & CO. Inc. purchased a new position in shares of PennyMac Financial Services in the 2nd quarter worth about $163,940,000. 57.87% of the stock is currently owned by institutional investors.

Insider Transactions at PennyMac Financial Services

In related news, CAO Gregory L. Hendry sold 2,177 shares of the stock in a transaction dated Wednesday, July 1st. The stock was 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 position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 15.20% of the company’s stock.

Analysts Set New Price Targets

PFSI has been the subject of several research reports. Zacks Research lowered shares of PennyMac Financial Services from a “hold” rating to a “strong sell” rating in a research report on Friday, May 8th. Barclays lowered their target price on PennyMac Financial Services from $93.00 to $85.00 and set an “equal weight” rating on the stock in a research note on Thursday, July 30th. Stephens cut their price target on PennyMac Financial Services from $91.00 to $78.00 and set an “equal weight” rating for the company in a research note on Thursday, July 30th. Weiss Ratings reissued a “sell (d+)” rating on shares of PennyMac Financial Services in a report on Monday, August 3rd. Finally, BTIG Research lowered their price objective on 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 assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, PennyMac Financial Services presently has an average rating of “Hold” and a consensus target price of $104.88.

PennyMac Financial Services Stock Down 1.4%

PennyMac Financial Services stock opened at $74.15 on Wednesday. PennyMac Financial Services, Inc. has a 1-year low of $71.68 and a 1-year high of $160.36. The firm has a market capitalization of $3.85 billion, a price-to-earnings ratio of 10.19, a P/E/G ratio of 0.71 and a beta of 1.45. The company has a current ratio of 0.38, a quick ratio of 0.38 and a debt-to-equity ratio of 3.22. The firm has a 50 day simple moving average of $80.87 and a 200 day simple moving average of $85.74.

PennyMac Financial Services (NYSE:PFSI) last issued its earnings results on Wednesday, July 29th. The real estate investment trust reported $1.39 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.11 by ($0.72). PennyMac Financial Services had a net margin of 17.74% and a return on equity of 11.18%. The company’s revenue was up 11.8% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.54 EPS. On average, analysts predict that PennyMac Financial Services, Inc. will post 7.36 earnings per share for the current year.

PennyMac Financial Services Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Investors of record on Monday, August 17th will be paid a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date is Monday, August 17th. PennyMac Financial Services’s payout ratio is presently 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.