PennyMac Financial Services, Inc. (NYSE:PFSI) Sees Large Drop in Short Interest

PennyMac Financial Services, Inc. (NYSE:PFSIGet Rating) saw a large drop in short interest in May. As of May 31st, there was short interest totalling 2,710,000 shares, a drop of 26.6% from the May 15th total of 3,690,000 shares. Currently, 5.7% of the company’s stock are sold short. Based on an average daily volume of 636,800 shares, the short-interest ratio is presently 4.3 days.

Shares of NYSE PFSI traded up $1.14 during trading on Friday, reaching $40.87. 24,511 shares of the stock traded hands, compared to its average volume of 502,576. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.31 and a quick ratio of 0.31. The stock has a market capitalization of $2.27 billion, a P/E ratio of 3.19 and a beta of 1.21. PennyMac Financial Services has a 52-week low of $39.38 and a 52-week high of $71.52. The company has a 50-day moving average of $47.73 and a 200-day moving average of $57.04.

PennyMac Financial Services (NYSE:PFSIGet Rating) last released its quarterly earnings data on Thursday, May 5th. The real estate investment trust reported $2.94 EPS for the quarter, beating the consensus estimate of $2.89 by $0.05. The business had revenue of $657.50 million for the quarter, compared to the consensus estimate of $622.14 million. PennyMac Financial Services had a net margin of 27.78% and a return on equity of 25.12%. The company’s revenue was down 30.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $5.15 earnings per share. Analysts expect that PennyMac Financial Services will post 8.68 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which was paid on Friday, May 27th. Investors of record on Tuesday, May 17th were issued a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 1.96%. The ex-dividend date was Monday, May 16th. PennyMac Financial Services’s dividend payout ratio (DPR) is presently 6.42%.

Several research firms have commented on PFSI. StockNews.com upgraded shares of PennyMac Financial Services from a “sell” rating to a “hold” rating in a research note on Thursday, May 19th. Credit Suisse Group dropped their price target on PennyMac Financial Services to $66.00 and set a “neutral” rating on the stock in a report on Thursday, May 19th. Barclays reduced their price objective on PennyMac Financial Services from $103.00 to $90.00 in a research note on Monday, May 9th. Piper Sandler cut their price target on shares of PennyMac Financial Services from $117.00 to $98.00 and set an “overweight” rating on the stock in a report on Tuesday, April 5th. Finally, BTIG Research initiated coverage on shares of PennyMac Financial Services in a report on Wednesday, April 20th. They set a “buy” rating and a $60.00 price objective for the company. Two research analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Buy” and a consensus price target of $78.17.

In other PennyMac Financial Services news, Director Joseph F. Mazzella sold 13,000 shares of PennyMac Financial Services stock in a transaction on Thursday, May 26th. The shares were sold at an average price of $50.12, for a total transaction of $651,560.00. Following the transaction, the director now directly owns 351,331 shares of the company’s stock, valued at approximately $17,608,709.72. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CIO Vandad Fartaj sold 2,500 shares of the stock in a transaction dated Wednesday, May 11th. The shares were sold at an average price of $45.16, for a total transaction of $112,900.00. Following the completion of the sale, the executive now owns 108,634 shares of the company’s stock, valued at approximately $4,905,911.44. The disclosure for this sale can be found here. Over the last quarter, insiders sold 55,528 shares of company stock worth $2,791,878. 18.00% of the stock is owned by company insiders.

A number of hedge funds have recently modified their holdings of the business. Point72 Hong Kong Ltd purchased a new stake in shares of PennyMac Financial Services in the fourth quarter worth about $58,000. Ensign Peak Advisors Inc purchased a new stake in PennyMac Financial Services in the 4th quarter worth approximately $120,000. Canada Pension Plan Investment Board lifted its stake in PennyMac Financial Services by 19.9% in the 1st quarter. Canada Pension Plan Investment Board now owns 2,932 shares of the real estate investment trust’s stock worth $156,000 after purchasing an additional 486 shares in the last quarter. Robeco Institutional Asset Management B.V. purchased a new position in shares of PennyMac Financial Services during the 4th quarter valued at $164,000. Finally, Advisors Asset Management Inc. bought a new position in shares of PennyMac Financial Services in the first quarter worth $168,000. 62.61% of the stock is currently owned by institutional investors and hedge funds.

PennyMac Financial Services Company Profile (Get Rating)

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: Production, Servicing, and Investment Management. The Production segment is involved in the origination, acquisition, and sale of loans.

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