Investors Purchase Large Volume of PennyMac Financial Services Put Options (NYSE:PFSI)

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PennyMac Financial Services, Inc. (NYSE:PFSI) saw some unusual options trading activity on Wednesday. Stock traders purchased 10,037 put options on the stock. This is an increase of 480% compared to the typical volume of 1,730 put options.

Shares of PFSI opened at $69.20 on Friday. PennyMac Financial Services has a 1-year low of $55.11 and a 1-year high of $70.99. The stock has a market cap of $4.08 billion, a PE ratio of 3.87 and a beta of 1.19. The firm has a 50-day simple moving average of $65.12 and a two-hundred day simple moving average of $63.82. The company has a debt-to-equity ratio of 2.64, a current ratio of 0.26 and a quick ratio of 0.26.

PennyMac Financial Services (NYSE:PFSI) last announced its quarterly earnings results on Thursday, November 4th. The real estate investment trust reported $3.80 earnings per share for the quarter, beating analysts’ consensus estimates of $3.31 by $0.49. PennyMac Financial Services had a net margin of 36.50% and a return on equity of 36.99%. The business had revenue of $786.61 million during the quarter, compared to analysts’ expectations of $832.20 million. During the same period last year, the business earned $7.03 earnings per share. The business’s revenue for the quarter was down 29.8% on a year-over-year basis. As a group, sell-side analysts expect that PennyMac Financial Services will post 20.36 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, November 24th. Stockholders of record on Monday, November 15th were paid a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 1.16%. The ex-dividend date of this dividend was Friday, November 12th. PennyMac Financial Services’s payout ratio is 4.48%.

Several research firms recently commented on PFSI. Zacks Investment Research lowered shares of PennyMac Financial Services from a “buy” rating to a “hold” rating in a research note on Saturday, November 13th. Wedbush increased their price objective on shares of PennyMac Financial Services from $75.00 to $90.00 and gave the stock an “outperform” rating in a research note on Monday, August 16th. Three investment analysts have rated the stock with a hold rating and six have given a buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Buy” and a consensus target price of $85.67.

In other news, CEO David Spector sold 15,000 shares of the company’s stock in a transaction that occurred on Wednesday, October 20th. The shares were sold at an average price of $67.51, for a total value of $1,012,650.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Farhad Nanji acquired 151,852 shares of PennyMac Financial Services stock in a transaction that occurred on Monday, November 29th. The shares were purchased at an average price of $64.98 per share, with a total value of $9,867,342.96. The disclosure for this purchase can be found here. Over the last three months, insiders acquired 412,554 shares of company stock valued at $26,628,876 and sold 45,000 shares valued at $2,985,150. 12.90% of the stock is owned by insiders.

Several hedge funds and other institutional investors have recently bought and sold shares of PFSI. First Trust Advisors LP boosted its stake in shares of PennyMac Financial Services by 2.6% in the first quarter. First Trust Advisors LP now owns 111,812 shares of the real estate investment trust’s stock valued at $2,487,000 after purchasing an additional 2,862 shares during the period. Ameriprise Financial Inc. boosted its stake in shares of PennyMac Financial Services by 47.1% in the first quarter. Ameriprise Financial Inc. now owns 52,429 shares of the real estate investment trust’s stock valued at $3,506,000 after purchasing an additional 16,778 shares during the period. Royal Bank of Canada boosted its stake in shares of PennyMac Financial Services by 13.8% in the first quarter. Royal Bank of Canada now owns 17,449 shares of the real estate investment trust’s stock valued at $1,168,000 after purchasing an additional 2,116 shares during the period. Principal Financial Group Inc. boosted its stake in shares of PennyMac Financial Services by 31.0% in the first quarter. Principal Financial Group Inc. now owns 4,869 shares of the real estate investment trust’s stock valued at $326,000 after purchasing an additional 1,152 shares during the period. Finally, Victory Capital Management Inc. boosted its stake in shares of PennyMac Financial Services by 3.8% in the second quarter. Victory Capital Management Inc. now owns 16,431 shares of the real estate investment trust’s stock valued at $1,014,000 after purchasing an additional 598 shares during the period. 57.91% of the stock is owned by institutional investors and hedge funds.

About PennyMac Financial Services

PennyMac Financial Services, Inc operates as a holding company. The firm engages in the production and servicing of U.S. residential mortgage loans. It operates through the following segments: Production, Servicing, and Investment Management. The Production segment includes mortgage loan origination, acquisition, and sale activities.

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