PennyMac Financial Services Inc (NYSE:PFSI) Sees Significant Growth in Short Interest

PennyMac Financial Services Inc (NYSE:PFSI) was the target of a large increase in short interest in the month of May. As of May 29th, there was short interest totalling 2,540,000 shares, an increase of 7.2% from the May 14th total of 2,370,000 shares. Approximately 4.0% of the shares of the stock are short sold. Based on an average trading volume of 996,100 shares, the short-interest ratio is presently 2.5 days.

In related news, Director Stanford L. Kurland sold 15,000 shares of the company’s stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $28.82, for a total value of $432,300.00. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Jeffrey Grogin sold 36,900 shares of the company’s stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $29.06, for a total value of $1,072,314.00. Following the completion of the sale, the insider now owns 56,532 shares in the company, valued at approximately $1,642,819.92. The disclosure for this sale can be found here. In the last 90 days, insiders sold 249,258 shares of company stock worth $7,903,749. Insiders own 21.48% of the company’s stock.

Hedge funds have recently added to or reduced their stakes in the company. Salomon & Ludwin LLC acquired a new stake in shares of PennyMac Financial Services during the 4th quarter worth $32,000. US Bancorp DE increased its holdings in shares of PennyMac Financial Services by 76.5% during the 4th quarter. US Bancorp DE now owns 1,537 shares of the real estate investment trust’s stock worth $52,000 after buying an additional 666 shares during the last quarter. Valeo Financial Advisors LLC acquired a new stake in shares of PennyMac Financial Services during the 1st quarter worth $50,000. Ladenburg Thalmann Financial Services Inc. increased its holdings in shares of PennyMac Financial Services by 52.0% during the 4th quarter. Ladenburg Thalmann Financial Services Inc. now owns 3,088 shares of the real estate investment trust’s stock worth $105,000 after buying an additional 1,056 shares during the last quarter. Finally, Tower Research Capital LLC TRC acquired a new stake in shares of PennyMac Financial Services during the 1st quarter worth $69,000. Institutional investors and hedge funds own 53.49% of the company’s stock.

Shares of PennyMac Financial Services stock traded up $0.22 during trading hours on Friday, reaching $37.92. 1,130,106 shares of the company’s stock were exchanged, compared to its average volume of 703,632. PennyMac Financial Services has a 52-week low of $13.14 and a 52-week high of $39.57. The firm has a market capitalization of $2.99 billion, a price-to-earnings ratio of 4.69 and a beta of 1.16. The company has a fifty day moving average of $31.17 and a 200-day moving average of $31.46. The company has a current ratio of 0.54, a quick ratio of 0.54 and a debt-to-equity ratio of 2.15.

PennyMac Financial Services (NYSE:PFSI) last issued its quarterly earnings results on Thursday, May 7th. The real estate investment trust reported $3.73 earnings per share for the quarter, topping analysts’ consensus estimates of $3.11 by $0.62. PennyMac Financial Services had a return on equity of 32.19% and a net margin of 33.47%. The company had revenue of $721.83 million for the quarter, compared to analyst estimates of $664.45 million. On average, equities research analysts anticipate that PennyMac Financial Services will post 11.08 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which was paid on Thursday, May 28th. Shareholders of record on Monday, May 18th were paid a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a dividend yield of 1.27%. The ex-dividend date was Friday, May 15th. PennyMac Financial Services’s dividend payout ratio is presently 9.82%.

A number of equities research analysts recently issued reports on PFSI shares. Credit Suisse Group reaffirmed a “buy” rating and issued a $36.00 target price on shares of PennyMac Financial Services in a research note on Wednesday, May 20th. Keefe, Bruyette & Woods raised PennyMac Financial Services from a “market perform” rating to an “outperform” rating and set a $40.00 target price on the stock in a research note on Friday, February 28th. JMP Securities upped their target price on PennyMac Financial Services from $25.00 to $40.00 and gave the company an “outperform” rating in a research note on Wednesday, May 20th. Barclays upped their target price on PennyMac Financial Services from $40.00 to $44.00 and gave the company an “overweight” rating in a research note on Thursday. Finally, Wells Fargo & Co reaffirmed a “buy” rating on shares of PennyMac Financial Services in a research note on Friday, May 8th. One analyst has rated the stock with a sell rating, seven have given a buy rating and one has assigned a strong buy rating to the stock. PennyMac Financial Services currently has an average rating of “Buy” and a consensus price target of $39.75.

About PennyMac Financial Services

PennyMac Financial Services, Inc, through its subsidiaries, engages in the mortgage banking and investment management activities in the United States. It operates through three segments: Loan Production, Loan Servicing, and Investment Management. The Loan Production segment is involved in the origination, acquisition, and sale of mortgage loans.

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