Stock Traders Buy Large Volume of PennyMac Financial Services Call Options (NYSE:PFSI)

PennyMac Financial Services Inc (NYSE:PFSI) was the target of some unusual options trading activity on Tuesday. Stock traders bought 928 call options on the stock. This is an increase of 931% compared to the average volume of 90 call options.

A number of analysts recently issued reports on the stock. Piper Jaffray Companies increased their price target on shares of PennyMac Financial Services from $42.00 to $44.00 and gave the stock an “overweight” rating in a report on Tuesday, November 19th. ValuEngine downgraded shares of PennyMac Financial Services from a “sell” rating to a “strong sell” rating in a report on Thursday, December 26th. Keefe, Bruyette & Woods cut shares of PennyMac Financial Services from an “outperform” rating to a “market perform” rating and set a $36.00 price objective for the company. in a research report on Sunday, December 8th. Finally, Barclays restated a “buy” rating and set a $37.00 price objective on shares of PennyMac Financial Services in a research report on Friday, October 25th. One analyst has rated the stock with a sell rating, three have assigned a hold rating, four have issued a buy rating and one has given a strong buy rating to the company’s stock. The stock has an average rating of “Buy” and a consensus target price of $34.50.

In related news, Chairman Stanford L. Kurland sold 45,000 shares of the stock in a transaction on Monday, October 21st. The shares were sold at an average price of $31.53, for a total transaction of $1,418,850.00. Also, Director Matthew Botein sold 60,000 shares of the stock in a transaction on Friday, November 8th. The stock was sold at an average price of $30.74, for a total transaction of $1,844,400.00. Insiders sold a total of 222,628 shares of company stock worth $7,080,261 over the last ninety days. Insiders own 22.17% of the company’s stock.

Several hedge funds and other institutional investors have recently modified their holdings of PFSI. Point72 Hong Kong Ltd increased its position in PennyMac Financial Services by 179.2% during the second quarter. Point72 Hong Kong Ltd now owns 2,010 shares of the real estate investment trust’s stock worth $45,000 after purchasing an additional 1,290 shares during the last quarter. Bank of Montreal Can increased its position in PennyMac Financial Services by 490.0% during the second quarter. Bank of Montreal Can now owns 2,602 shares of the real estate investment trust’s stock worth $58,000 after purchasing an additional 2,161 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank increased its position in PennyMac Financial Services by 17.9% during the third quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 3,472 shares of the real estate investment trust’s stock worth $105,000 after purchasing an additional 526 shares during the last quarter. Russell Investments Group Ltd. acquired a new stake in PennyMac Financial Services during the third quarter worth about $133,000. Finally, Meeder Asset Management Inc. increased its position in PennyMac Financial Services by 8.2% during the third quarter. Meeder Asset Management Inc. now owns 6,960 shares of the real estate investment trust’s stock worth $211,000 after purchasing an additional 529 shares during the last quarter. Institutional investors and hedge funds own 50.95% of the company’s stock.

Shares of NYSE PFSI opened at $34.08 on Wednesday. The firm has a 50-day simple moving average of $33.86 and a 200-day simple moving average of $29.90. The stock has a market capitalization of $2.67 billion, a price-to-earnings ratio of 13.16, a price-to-earnings-growth ratio of 0.74 and a beta of 0.41. The company has a quick ratio of 0.18, a current ratio of 0.18 and a debt-to-equity ratio of 2.18. PennyMac Financial Services has a 52 week low of $20.22 and a 52 week high of $34.74.

PennyMac Financial Services (NYSE:PFSI) last issued its earnings results on Thursday, October 31st. The real estate investment trust reported $1.51 EPS for the quarter, beating the Zacks’ consensus estimate of $1.25 by $0.26. The business had revenue of $436.35 million during the quarter, compared to analysts’ expectations of $368.20 million. PennyMac Financial Services had a net margin of 22.54% and a return on equity of 15.84%. As a group, equities research analysts expect that PennyMac Financial Services will post 4.51 EPS for the current year.

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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