PennyMac Financial Services, Inc. (NYSE: PFSI) was the target of a significant drop in short interest in December. As of December 31, there was short interest totaling 1,210,000 shares, a decrease of 57.2% from the total of 2,830,000 shares as of December 15. Based on an average daily trading volume of 610,200 shares, the day-to-cover ratio is currently 2.0 days. Currently, 2.3% of the company’s shares are sold short.
A number of stock analysts have recently released reports on the company. On Wednesday, Zacks Investment Research upgraded PennyMac Financial Services from a “sell” rating to a “hold” rating in a research note. Barclays raised its price target on PennyMac Financial Services from $103.00 to $113.00 in a Monday, January 10 report. Three investment analysts gave the stock a hold rating and five gave the company a buy rating. According to MarketBeat.com, PennyMac Financial Services has a consensus rating of “Buy” and a consensus price target of $85.75.
In other news, Director Farhad Nanji purchased 9,002 shares of PennyMac Financial Services in a trade dated Friday, November 26. The shares were acquired at an average cost of $64.88 per share, with a total value of $584,049.76. The acquisition was disclosed in a legal filing with the SEC, accessible via this hyperlink. Additionally, CEO David Spector sold 15,000 shares of the company in a trade dated Thursday, November 18. The shares were sold at an average price of $62.28, for a total value of $934,200.00. The disclosure of this sale can be found here. Over the past ninety days, insiders have bought 412,554 shares of the company worth $26,628,876 and sold 60,000 shares worth $4,027,950. Insiders hold 12.90% of the shares of the company.
A number of hedge funds and other institutional investors have recently changed their holdings in the company. Squarepoint Ops LLC increased its stake in PennyMac Financial Services shares by 5.8% during the third quarter. Squarepoint Ops LLC now owns 7,056 shares of the real estate investment trust worth $431,000 after acquiring 386 additional shares during the period. IFP Advisors Inc increased its position in PennyMac Financial Services by 18.2% in the fourth quarter. IFP Advisors Inc now owns 2,840 shares of the real estate investment trust worth $200,000 after buying 438 additional shares last quarter. IndexIQ Advisors LLC increased its stake in PennyMac Financial Services by 11.1% in the third quarter. IndexIQ Advisors LLC now owns 6,723 shares of the real estate investment trust worth $411,000 after buying 673 additional shares in the last quarter. The Canada Pension Plan Investment Board acquired a new stake in PennyMac Financial Services during the second quarter worth approximately $48,000. Finally, Janney Montgomery Scott LLC increased its holdings in PennyMac Financial Services by 18.4% in the third quarter. Janney Montgomery Scott LLC now owns 5,143 shares of the real estate investment trust valued at $314,000 after buying 800 additional shares during the period. Institutional investors and hedge funds hold 61.64% of the company’s shares.
Shares of PFSI were down $0.66 midday Friday, hitting $68.90. The stock had a trading volume of 587,370 shares, compared to an average volume of 441,977. The company has a 50-day simple moving average of $67.38 and a 200-day simple moving average of 65.01 $. The company has a current ratio of 0.26, a quick ratio of 0.26 and a debt ratio of 2.64. The company has a market capitalization of $4.07 billion, a PE ratio of 3.86 and a beta of 1.21. PennyMac Financial Services has a one-year low of $55.11 and a one-year high of $71.52.
PennyMac Financial Services (NYSE:PFSI) last released its quarterly results on Thursday, November 4. The real estate investment trust reported earnings per share (EPS) of $3.80 for the quarter, beating the Zacks consensus estimate of $3.31 by $0.49. PennyMac Financial Services posted a net margin of 36.50% and a return on equity of 36.99%. The company posted revenue of $786.61 million for the quarter, versus a consensus estimate of $832.20 million. In the same quarter of the previous year, the company achieved EPS of $7.03. The company’s revenue for the quarter was down 29.8% year over year. As a group, research analysts expect PennyMac Financial Services to post EPS of 20.36 for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Wednesday, November 24. Shareholders of record on Monday, November 15 received a dividend of $0.20. This represents a dividend of $0.80 on an annualized basis and a dividend yield of 1.16%. The ex-dividend date was Friday, November 12. PennyMac Financial Services’ payout ratio is 4.48%.
PennyMac Financial Services Company Profile
PennyMac Financial Services, Inc operates as a holding company. The company is involved in the origination and servicing of residential mortgage loans in the United States. It operates through the following segments: Production, Maintenance and Investment Management. The Production segment includes the business of origination, acquisition and sale of mortgage loans.
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