Concentric Capital Strategies LP Increases Stock Position in PennyMac Financial Services, Inc. $PFSI

Concentric Capital Strategies LP raised its position in PennyMac Financial Services, Inc. (NYSE:PFSI) by 420.3% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 86,478 shares of the real estate investment trust’s stock after acquiring an additional 69,858 shares during the quarter. Concentric Capital Strategies LP’s holdings in PennyMac Financial Services were worth $11,401,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently modified their holdings of PFSI. Hudson Bay Capital Management LP purchased a new stake in PennyMac Financial Services in the 3rd quarter worth approximately $5,593,000. 140 Summer Partners LP purchased a new stake in PennyMac Financial Services in the third quarter worth $55,268,000. Picton Mahoney Asset Management boosted its holdings in PennyMac Financial Services by 554.1% in the third quarter. Picton Mahoney Asset Management now owns 28,872 shares of the real estate investment trust’s stock valued at $3,576,000 after acquiring an additional 24,458 shares in the last quarter. American Century Companies Inc. increased its position in PennyMac Financial Services by 7.5% during the 3rd quarter. American Century Companies Inc. now owns 429,403 shares of the real estate investment trust’s stock valued at $53,195,000 after purchasing an additional 30,015 shares during the period. Finally, Norges Bank bought a new position in PennyMac Financial Services in the 4th quarter worth $44,287,000. 57.87% of the stock is owned by institutional investors.

Analysts Set New Price Targets

PFSI has been the topic of a number of research reports. Stephens assumed coverage on shares of PennyMac Financial Services in a research note on Friday, April 24th. They set an “equal weight” rating and a $100.00 target price on the stock. Keefe, Bruyette & Woods reduced their target price on PennyMac Financial Services from $115.00 to $108.00 and set an “outperform” rating on the stock in a report on Friday, May 8th. Weiss Ratings cut PennyMac Financial Services from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Wednesday, May 6th. BTIG Research reduced their price target on PennyMac Financial Services from $150.00 to $105.00 and set a “buy” rating on the stock in a research note on Tuesday. Finally, Piper Sandler lowered their price objective on PennyMac Financial Services from $122.00 to $112.00 and set an “overweight” rating for the company in a research report on Wednesday, May 6th. Six research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $117.13.

PennyMac Financial Services Trading Down 3.0%

Shares of NYSE:PFSI opened at $81.12 on Thursday. The stock’s fifty day moving average price is $87.16 and its 200-day moving average price is $104.46. The company has a debt-to-equity ratio of 3.63, a current ratio of 0.33 and a quick ratio of 0.33. The company has a market cap of $4.21 billion, a P/E ratio of 8.62, a PEG ratio of 0.54 and a beta of 1.44. PennyMac Financial Services, Inc. has a 1 year low of $77.67 and a 1 year high of $160.36.

PennyMac Financial Services (NYSE:PFSI) last posted its quarterly earnings data on Tuesday, May 5th. The real estate investment trust reported $2.19 EPS for the quarter, missing the consensus estimate of $2.22 by ($0.03). PennyMac Financial Services had a return on equity of 10.93% and a net margin of 23.47%.The company had revenue of $544.98 million during the quarter, compared to analysts’ expectations of $546.17 million. During the same quarter last year, the company earned $1.42 earnings per share. The company’s revenue for the quarter was up 26.5% on a year-over-year basis. Sell-side analysts expect that PennyMac Financial Services, Inc. will post 10.68 earnings per share for the current year.

PennyMac Financial Services Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, May 28th. Shareholders of record on Monday, May 18th were given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date was Monday, May 18th. PennyMac Financial Services’s dividend payout ratio is presently 12.75%.

Insiders Place Their Bets

In other news, CEO David Spector sold 10,000 shares of the stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $87.99, for a total value of $879,900.00. Following the completion of the sale, the chief executive officer directly owned 60,604 shares of the company’s stock, valued at $5,332,545.96. This represents a 14.16% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Daniel Stanley Perotti sold 2,925 shares of PennyMac Financial Services stock in a transaction on Friday, May 15th. The shares were sold at an average price of $87.50, for a total transaction of $255,937.50. Following the transaction, the chief financial officer owned 210,625 shares in the company, valued at approximately $18,429,687.50. This trade represents a 1.37% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 22,925 shares of company stock valued at $2,064,138. Corporate insiders own 15.80% of the company’s stock.

About PennyMac Financial Services

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.