Hsbc Holdings PLC Reduces Stock Holdings in PennyMac Financial Services, Inc. $PFSI

Hsbc Holdings PLC reduced its stake in PennyMac Financial Services, Inc. (NYSE:PFSI) by 3.6% during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 5,288 shares of the real estate investment trust’s stock after selling 198 shares during the period. Hsbc Holdings PLC’s holdings in PennyMac Financial Services were worth $533,000 as of its most recent SEC filing.

Other hedge funds also recently added to or reduced their stakes in the company. CWM LLC increased its stake in PennyMac Financial Services by 71.5% in the first quarter. CWM LLC now owns 271 shares of the real estate investment trust’s stock valued at $27,000 after purchasing an additional 113 shares during the last quarter. Aquatic Capital Management LLC purchased a new position in shares of PennyMac Financial Services during the fourth quarter worth approximately $71,000. Xponance Inc. purchased a new position in shares of PennyMac Financial Services during the first quarter worth approximately $202,000. Hohimer Wealth Management LLC grew its position in shares of PennyMac Financial Services by 5.4% during the first quarter. Hohimer Wealth Management LLC now owns 2,351 shares of the real estate investment trust’s stock worth $235,000 after acquiring an additional 121 shares during the last quarter. Finally, Northwest & Ethical Investments L.P. purchased a new position in shares of PennyMac Financial Services during the first quarter worth approximately $644,000. 57.87% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on PFSI shares. Keefe, Bruyette & Woods lowered their target price on shares of PennyMac Financial Services from $121.00 to $117.00 and set an “outperform” rating on the stock in a research report on Thursday, July 24th. Barclays lowered their target price on shares of PennyMac Financial Services from $124.00 to $119.00 and set an “overweight” rating on the stock in a research report on Tuesday, July 8th. UBS Group lowered their target price on shares of PennyMac Financial Services from $115.00 to $110.00 and set a “neutral” rating on the stock in a research report on Thursday, July 24th. Wall Street Zen upgraded shares of PennyMac Financial Services from a “sell” rating to a “hold” rating in a research report on Friday, August 22nd. Finally, Wells Fargo & Company initiated coverage on shares of PennyMac Financial Services in a research report on Monday, August 25th. They set an “overweight” rating and a $115.00 target price on the stock. Five research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $118.67.

PennyMac Financial Services Price Performance

Shares of NYSE PFSI opened at $110.17 on Tuesday. The company has a debt-to-equity ratio of 3.03, a current ratio of 0.34 and a quick ratio of 0.34. The stock has a fifty day moving average price of $101.54 and a 200 day moving average price of $99.19. PennyMac Financial Services, Inc. has a 1-year low of $85.74 and a 1-year high of $119.13. The company has a market cap of $5.70 billion, a PE ratio of 15.28 and a beta of 1.51.

PennyMac Financial Services (NYSE:PFSI) last released its earnings results on Tuesday, July 22nd. The real estate investment trust reported $1.02 EPS for the quarter, missing analysts’ consensus estimates of $3.01 by ($1.99). PennyMac Financial Services had a net margin of 22.00% and a return on equity of 12.18%. The business had revenue of $444.73 million during the quarter, compared to analyst estimates of $547.44 million. During the same period last year, the business posted $1.85 EPS. PennyMac Financial Services’s revenue was up 9.5% compared to the same quarter last year. Sell-side analysts forecast that PennyMac Financial Services, Inc. will post 13.77 EPS for the current year.

PennyMac Financial Services Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Shareholders of record on Wednesday, August 13th were issued a $0.30 dividend. The ex-dividend date of this dividend was Wednesday, August 13th. This represents a $1.20 dividend on an annualized basis and a yield of 1.1%. PennyMac Financial Services’s dividend payout ratio (DPR) is 16.64%.

Insider Buying and Selling at PennyMac Financial Services

In other PennyMac Financial Services news, insider Derek Stark sold 4,750 shares of the firm’s stock in a transaction on Monday, August 25th. The stock was sold at an average price of $109.56, for a total value of $520,410.00. Following the completion of the sale, the insider owned 20,621 shares of the company’s stock, valued at approximately $2,259,236.76. This trade represents a 18.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO David Spector sold 5,000 shares of the firm’s stock in a transaction on Monday, August 18th. The shares were sold at an average price of $105.73, for a total value of $528,650.00. Following the completion of the sale, the chief executive officer directly owned 130,604 shares of the company’s stock, valued at approximately $13,808,760.92. This trade represents a 3.69% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 26,857 shares of company stock valued at $2,813,253. 15.80% of the stock is owned by company insiders.

About PennyMac Financial Services

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