Rubric Capital Management LP Invests $4.78 Million in PennyMac Financial Services, Inc. $PFSI

Rubric Capital Management LP purchased a new position in shares of PennyMac Financial Services, Inc. (NYSE:PFSI) during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm purchased 54,727 shares of the real estate investment trust’s stock, valued at approximately $4,783,000. Rubric Capital Management LP owned about 0.11% of PennyMac Financial Services as of its most recent SEC filing.

Several other institutional investors have also recently added to or reduced their stakes in PFSI. Norges Bank acquired a new stake in PennyMac Financial Services during the 4th quarter worth approximately $44,287,000. Two Sigma Investments LP grew its stake in shares of PennyMac Financial Services by 1,148.7% in the 3rd quarter. Two Sigma Investments LP now owns 310,919 shares of the real estate investment trust’s stock valued at $38,517,000 after purchasing an additional 286,019 shares during the last quarter. Holocene Advisors LP increased its holdings in shares of PennyMac Financial Services by 2,379.5% in the third quarter. Holocene Advisors LP now owns 245,268 shares of the real estate investment trust’s stock valued at $30,384,000 after purchasing an additional 235,376 shares during the period. Invesco Ltd. increased its holdings in shares of PennyMac Financial Services by 18.3% in the third quarter. Invesco Ltd. now owns 1,463,096 shares of the real estate investment trust’s stock valued at $181,248,000 after purchasing an additional 226,581 shares during the period. Finally, 140 Summer Partners LP increased its holdings in shares of 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. Institutional investors and hedge funds own 57.87% of the company’s stock.

Analyst Upgrades and Downgrades

PFSI has been the subject of several recent research reports. Barclays downgraded PennyMac Financial Services from an “overweight” rating to an “equal weight” rating and decreased their price target for the stock from $107.00 to $93.00 in a report on Tuesday, July 7th. Weiss Ratings cut shares of PennyMac Financial Services from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Wednesday, May 6th. Piper Sandler cut their price objective on shares of PennyMac Financial Services from $112.00 to $106.00 and set an “overweight” rating for the company in a research report on Thursday, July 2nd. Zacks Research cut shares of PennyMac Financial Services from a “hold” rating to a “strong sell” rating in a research note on Friday, May 8th. Finally, Stephens initiated coverage on shares of PennyMac Financial Services in a report on Friday, April 24th. They issued an “equal weight” rating and a $100.00 target price on the stock. Five research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $114.62.

PennyMac Financial Services Trading Up 0.2%

Shares of PFSI stock opened at $84.52 on Tuesday. The business’s fifty day moving average price is $83.49 and its 200 day moving average price is $94.83. PennyMac Financial Services, Inc. has a 1-year low of $77.67 and a 1-year high of $160.36. The firm has a market capitalization of $4.39 billion, a PE ratio of 8.98, a P/E/G ratio of 0.60 and a beta of 1.44. The company has a debt-to-equity ratio of 3.63, a current ratio of 0.33 and a quick ratio of 0.33.

PennyMac Financial Services (NYSE:PFSI) last released its quarterly earnings data on Tuesday, May 5th. The real estate investment trust reported $2.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.22 by ($0.03). The business had revenue of $544.98 million during the quarter, compared to analysts’ expectations of $546.17 million. PennyMac Financial Services had a return on equity of 10.93% and a net margin of 23.47%.The company’s revenue was up 26.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.42 EPS. As a group, sell-side analysts forecast that PennyMac Financial Services, Inc. will post 9.77 EPS for the current fiscal year.

PennyMac Financial Services Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, May 28th. Stockholders of record on Monday, May 18th were issued a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date was Monday, May 18th. PennyMac Financial Services’s dividend payout ratio (DPR) is currently 12.75%.

Insider Activity at PennyMac Financial Services

In other PennyMac Financial Services news, CAO Gregory L. Hendry sold 2,177 shares of the stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $86.89, for a total value of $189,159.53. Following the completion of the transaction, the chief accounting officer directly owned 48,968 shares of the company’s stock, valued at approximately $4,254,829.52. This trade represents a 4.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 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 that occurred 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 sale, the chief financial officer owned 210,625 shares of the company’s stock, valued at approximately $18,429,687.50. The trade was a 1.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 18,045 shares of company stock worth $1,565,470 over the last 90 days. Company insiders own 15.80% of the company’s stock.

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.