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

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PennyMac Financial Services Inc (NYSE:PFSI) saw a significant growth in short interest in September. As of September 30th, there was short interest totalling 990,500 shares, a growth of 11.0% from the August 30th total of 892,600 shares. Based on an average daily volume of 339,600 shares, the days-to-cover ratio is currently 2.9 days. Currently, 1.6% of the shares of the stock are sold short.

NYSE:PFSI traded up $0.38 during mid-day trading on Wednesday, reaching $31.83. The stock had a trading volume of 259,348 shares, compared to its average volume of 298,088. The firm has a 50 day moving average price of $30.66 and a two-hundred day moving average price of $25.12. The stock has a market capitalization of $2.44 billion, a P/E ratio of 12.29, a P/E/G ratio of 0.83 and a beta of 0.38. PennyMac Financial Services has a one year low of $18.77 and a one year high of $32.24. The company has a debt-to-equity ratio of 1.89, a quick ratio of 0.19 and a current ratio of 0.19.

PennyMac Financial Services (NYSE:PFSI) last released its earnings results on Thursday, August 1st. The real estate investment trust reported $0.92 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.77 by $0.15. PennyMac Financial Services had a return on equity of 9.76% and a net margin of 16.34%. The company had revenue of $302.98 million during the quarter, compared to the consensus estimate of $267.80 million. Research analysts forecast that PennyMac Financial Services will post 3.73 earnings per share for the current year.

A number of research firms recently weighed in on PFSI. TheStreet upgraded PennyMac Financial Services from a “c+” rating to a “b+” rating in a research report on Wednesday, August 14th. Credit Suisse Group boosted their target price on PennyMac Financial Services from $24.00 to $29.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 21st. Wells Fargo & Co upgraded PennyMac Financial Services from a “market perform” rating to an “outperform” rating and set a $35.00 target price for the company in a research report on Thursday, September 5th. Piper Jaffray Companies boosted their target price on PennyMac Financial Services from $38.00 to $40.00 and gave the stock an “overweight” rating in a research report on Monday, September 16th. Finally, Zacks Investment Research upgraded PennyMac Financial Services from a “hold” rating to a “strong-buy” rating and set a $26.00 target price for the company in a research report on Wednesday, July 17th. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating, four have given a buy rating and one has given a strong buy rating to the company. The company presently has an average rating of “Buy” and a consensus price target of $31.00.

In other news, Director Anne Mccallion sold 10,000 shares of the business’s stock in a transaction dated Thursday, July 18th. The stock was sold at an average price of $23.46, for a total transaction of $234,600.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Chairman Stanford L. Kurland sold 45,000 shares of the business’s stock in a transaction dated Thursday, September 12th. The stock was sold at an average price of $30.71, for a total value of $1,381,950.00. Insiders have sold 140,000 shares of company stock valued at $4,026,600 in the last three months. 22.17% of the stock is owned by insiders.

Hedge funds have recently made changes to their positions in the business. Point72 Hong Kong Ltd lifted its position in PennyMac Financial Services by 179.2% in the second quarter. Point72 Hong Kong Ltd now owns 2,010 shares of the real estate investment trust’s stock valued at $45,000 after purchasing an additional 1,290 shares during the last quarter. Bank of Montreal Can lifted its position in PennyMac Financial Services by 490.0% in the second quarter. Bank of Montreal Can now owns 2,602 shares of the real estate investment trust’s stock valued at $58,000 after purchasing an additional 2,161 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank bought a new stake in PennyMac Financial Services in the second quarter valued at approximately $65,000. SG Americas Securities LLC bought a new stake in PennyMac Financial Services in the second quarter valued at approximately $102,000. Finally, BNP Paribas Arbitrage SA bought a new stake in PennyMac Financial Services in the second quarter valued at approximately $107,000. Hedge funds and other institutional investors own 30.45% of the company’s stock.

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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