Short Interest in PennyMac Financial Services, Inc. (NYSE:PFSI) Grows By 48.1%

PennyMac Financial Services, Inc. (NYSE:PFSI) was the target of a significant growth in short interest in February. As of February 13th, there was short interest totaling 1,965,915 shares, a growth of 48.1% from the January 29th total of 1,327,258 shares. Currently, 4.5% of the shares of the stock are short sold. Based on an average daily volume of 1,550,167 shares, the short-interest ratio is currently 1.3 days. Based on an average daily volume of 1,550,167 shares, the short-interest ratio is currently 1.3 days. Currently, 4.5% of the shares of the stock are short sold.

PennyMac Financial Services Trading Down 1.2%

PFSI traded down $1.14 during trading hours on Friday, reaching $91.79. The company’s stock had a trading volume of 1,188,673 shares, compared to its average volume of 1,403,387. The stock has a market cap of $4.79 billion, a PE ratio of 9.87, a P/E/G ratio of 0.52 and a beta of 1.54. PennyMac Financial Services has a fifty-two week low of $85.74 and a fifty-two week high of $160.36. The company has a debt-to-equity ratio of 3.32, a current ratio of 0.34 and a quick ratio of 0.36. The business’s 50-day moving average is $121.95 and its 200-day moving average is $122.52.

PennyMac Financial Services (NYSE:PFSI) last posted its earnings results on Thursday, January 29th. The real estate investment trust reported $1.97 EPS for the quarter, missing analysts’ consensus estimates of $3.23 by ($1.26). The business had revenue of $538.01 million during the quarter, compared to analysts’ expectations of $639.81 million. PennyMac Financial Services had a net margin of 24.48% and a return on equity of 10.20%. PennyMac Financial Services’s revenue for the quarter was up 14.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.95 EPS. As a group, equities research analysts predict that PennyMac Financial Services will post 13.77 earnings per share for the current fiscal year.

PennyMac Financial Services Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, February 26th. Investors of record on Monday, February 16th were paid a dividend of $0.30 per share. The ex-dividend date of this dividend was Friday, February 13th. This represents a $1.20 annualized dividend and a yield of 1.3%. PennyMac Financial Services’s dividend payout ratio is presently 12.90%.

Analyst Ratings Changes

Several brokerages have issued reports on PFSI. Jefferies Financial Group initiated coverage on shares of PennyMac Financial Services in a research note on Friday, December 19th. They set a “buy” rating and a $160.00 target price on the stock. BTIG Research reiterated a “buy” rating on shares of PennyMac Financial Services in a report on Friday, January 30th. Barclays lowered their target price on PennyMac Financial Services from $158.00 to $136.00 and set an “overweight” rating on the stock in a report on Friday, January 30th. Weiss Ratings cut PennyMac Financial Services from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, January 20th. Finally, Wall Street Zen downgraded PennyMac Financial Services from a “buy” rating to a “hold” rating in a research report on Sunday, January 18th. Five investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, PennyMac Financial Services has an average rating of “Hold” and a consensus target price of $139.71.

Insider Activity

In other PennyMac Financial Services news, CEO David Spector sold 10,000 shares of the stock in a transaction that occurred on Thursday, February 19th. The stock was sold at an average price of $94.50, for a total transaction of $945,000.00. Following the completion of the transaction, the chief executive officer owned 90,604 shares of the company’s stock, valued at $8,562,078. This represents a 9.94% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Patrick Kinsella bought 2,250 shares of the firm’s stock in a transaction dated Thursday, February 12th. The stock was purchased at an average price of $89.15 per share, for a total transaction of $200,587.50. Following the transaction, the director owned 34,210 shares of the company’s stock, valued at approximately $3,049,821.50. This represents a 7.04% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders have sold 36,308 shares of company stock worth $4,236,500. Company insiders own 15.80% of the company’s stock.

Institutional Investors Weigh In On PennyMac Financial Services

Several large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its position in PennyMac Financial Services by 0.5% in the 4th quarter. Vanguard Group Inc. now owns 2,832,737 shares of the real estate investment trust’s stock valued at $373,468,000 after buying an additional 12,782 shares during the period. Invesco Ltd. raised its stake in shares of PennyMac Financial Services by 7.3% in the fourth quarter. Invesco Ltd. now owns 1,569,184 shares of the real estate investment trust’s stock valued at $206,881,000 after acquiring an additional 106,088 shares in the last quarter. Geode Capital Management LLC boosted its holdings in PennyMac Financial Services by 6.0% in the second quarter. Geode Capital Management LLC now owns 721,757 shares of the real estate investment trust’s stock valued at $71,924,000 after purchasing an additional 41,124 shares during the period. 140 Summer Partners LP boosted its holdings in PennyMac Financial Services by 50.2% in the fourth quarter. 140 Summer Partners LP now owns 669,892 shares of the real estate investment trust’s stock valued at $88,319,000 after purchasing an additional 223,752 shares during the period. Finally, Basswood Capital Management L.L.C. grew its stake in 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 purchasing an additional 31,743 shares in the last quarter. 57.87% of the stock is owned by hedge funds and other institutional investors.

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.