Donald Smith & CO. Inc. Acquires Shares of 1,882,201 PennyMac Financial Services, Inc. $PFSI

Donald Smith & CO. Inc. acquired a new stake in PennyMac Financial Services, Inc. (NYSE:PFSI) in the 2nd quarter, Holdings Channel.com reports. The institutional investor 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 holding.

A number of other institutional investors and hedge funds have also recently modified their holdings of PFSI. Silvant Capital Management LLC purchased a new stake in PennyMac Financial Services during the 2nd quarter valued at $34,000. Vise Technologies Inc. purchased a new position in PennyMac Financial Services during the second quarter worth $313,000. NewEdge Wealth LLC purchased a new position in PennyMac Financial Services during the second quarter worth $906,000. K2 Principal Fund L.P. bought a new position in PennyMac Financial Services during the second quarter valued at $13,916,000. Finally, BlackRock Inc. purchased a new stake in shares of PennyMac Financial Services in the second quarter valued at $202,735,000. Hedge funds and other institutional investors own 57.87% of the company’s stock.

Insider Buying and Selling at PennyMac Financial Services

In related news, CAO Gregory L. Hendry sold 2,177 shares of the company’s 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 sale, the chief accounting officer directly owned 48,968 shares of the company’s stock, valued at $4,254,829.52. This represents a 4.26% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 15.20% of the stock is owned by insiders.

PennyMac Financial Services Stock Down 0.8%

Shares of NYSE:PFSI opened at $75.10 on Friday. The business’s 50 day moving average is $81.20 and its 200 day moving average is $86.07. The stock has a market cap of $3.90 billion, a P/E 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 52-week low of $71.68 and a 52-week high of $160.36. The company has a quick ratio of 0.38, a current ratio of 0.38 and a debt-to-equity ratio of 3.22.

PennyMac Financial Services (NYSE:PFSI) last issued 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 period in the prior year, the business earned $2.54 EPS. The company’s revenue was up 11.8% compared to the same quarter last year. Sell-side analysts predict that PennyMac Financial Services, Inc. will post 7.36 EPS for the current year.

PennyMac Financial Services Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Investors of record on Monday, August 17th will be issued a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 1.6%. The ex-dividend date is Monday, August 17th. PennyMac Financial Services’s payout ratio is presently 16.48%.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on PFSI shares. Wall Street Zen lowered shares of PennyMac Financial Services from a “hold” rating to a “sell” rating in a report on Saturday, August 1st. Piper Sandler lowered shares of PennyMac Financial Services from an “overweight” rating to a “neutral” rating and reduced their price objective for the stock from $106.00 to $86.00 in a research report on Thursday, July 30th. Stephens decreased their price objective on shares of PennyMac Financial Services from $91.00 to $78.00 and set an “equal weight” rating for the company in a research note on Thursday, July 30th. BTIG Research decreased their price objective on shares of PennyMac Financial Services from $105.00 to $90.00 and set a “buy” rating for the company in a research note on Thursday, July 30th. Finally, Wells Fargo & Company dropped their target price on PennyMac Financial Services from $100.00 to $95.00 and set an “overweight” rating for the company in a research report on Thursday, July 30th. Four equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target 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.