Donald Smith & CO. Inc. Invests $163.94 Million in PennyMac Financial Services, Inc. $PFSI

Donald Smith & CO. Inc. acquired a new stake in shares of PennyMac Financial Services, Inc. (NYSE:PFSI) during the 2nd quarter, according to its most recent 13F filing with the SEC. The firm acquired 1,882,201 shares of the real estate investment trust’s stock, valued at approximately $163,940,000. PennyMac Financial Services accounts for about 2.9% of Donald Smith & CO. Inc.’s investment portfolio, making the stock its 14th largest position. Donald Smith & CO. Inc. owned 3.63% of PennyMac Financial Services at the end of the most recent reporting period.

Other large investors also recently modified their holdings of the company. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in PennyMac Financial Services in the 2nd quarter worth $25,000. EverSource Wealth Advisors LLC bought a new stake in PennyMac Financial Services during the second quarter valued at about $26,000. Caitong International Asset Management Co. Ltd lifted its position in shares of PennyMac Financial Services by 7,600.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 231 shares of the real estate investment trust’s stock valued at $30,000 after acquiring an additional 228 shares in the last quarter. Strs Ohio purchased a new position in shares of PennyMac Financial Services in the first quarter valued at about $30,000. Finally, Los Angeles Capital Management LLC bought a new position in shares of PennyMac Financial Services in the fourth quarter worth about $31,000. Hedge funds and other institutional investors own 57.87% of the company’s stock.

PennyMac Financial Services Stock Down 0.8%

Shares of PFSI opened at $75.10 on Friday. The stock has a market capitalization of $3.90 billion, a price-to-earnings ratio of 10.32, a price-to-earnings-growth ratio of 0.71 and a beta of 1.45. PennyMac Financial Services, Inc. has a 1 year low of $71.68 and a 1 year high of $160.36. The business’s 50 day simple moving average is $81.20 and its 200-day simple moving average is $86.07. The company has a debt-to-equity ratio of 3.22, a current ratio of 0.38 and a quick ratio of 0.38.

PennyMac Financial Services (NYSE:PFSI) last posted its earnings results on Wednesday, July 29th. The real estate investment trust reported $1.39 earnings per share 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%. During the same quarter in the previous year, the business earned $2.54 earnings per share. The firm’s revenue for the quarter was up 11.8% on a year-over-year basis. As a group, equities analysts expect 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. Shareholders of record on Monday, August 17th will be given a dividend of $0.30 per share. The ex-dividend date is Monday, August 17th. This represents a $1.20 annualized dividend and a yield of 1.6%. PennyMac Financial Services’s dividend payout ratio (DPR) is 16.48%.

Insider Buying and Selling

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

Wall Street Analysts Forecast Growth

PFSI has been the subject of several research analyst reports. Piper Sandler cut PennyMac Financial Services from an “overweight” rating to a “neutral” rating and cut their target price for the stock from $106.00 to $86.00 in a research report on Thursday, July 30th. Weiss Ratings restated a “sell (d+)” rating on shares of PennyMac Financial Services in a research note on Monday, August 3rd. Wells Fargo & Company dropped their price target 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. Barclays cut their price objective on shares of 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, Stephens reduced their price objective on shares of PennyMac Financial Services from $91.00 to $78.00 and set an “equal weight” rating on the stock in a research report on Thursday, July 30th. Four equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, PennyMac Financial Services has an average rating of “Hold” and an average target price 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.