WESTLAKE VILLAGE, Calif. - PennyMac Financial (NYSE:PFSI) Services, Inc. (NYSE: PFSI) and PennyMac Mortgage (NYSE:PMT) Investment Trust (NYSE: PMT) have announced a change in their executive leadership. William Chang is set to leave his roles as Senior Managing Director and Chief Capital Markets Officer for PFSI and Senior Managing Director and Chief Investment Officer for PMT to explore other opportunities within the mortgage banking sector.
Mark Elbaum, who joined Pennymac in April of the previous year, will be taking over Chang's responsibilities. Elbaum has a robust background in mortgage banking, with prior leadership positions at Homepoint Financial, Bank of America, and Countrywide. His experience encompasses capital markets, product pricing, and hedging. Elbaum has been actively working with Pennymac's production, pricing, and capital markets teams and will assume his new roles immediately following Chang's departure.
David Spector, Chairman and CEO of PennyMac, expressed confidence in Elbaum's capabilities to lead the capital markets group and praised Chang for his over a decade of service to the company. Spector acknowledged Chang's contributions to shaping Pennymac's success and wished him well in his future endeavors.
PennyMac Financial Services, Inc., founded in 2008, is a specialty financial services firm focused on the production and servicing of U.S. mortgage loans and the management of investments related to the U.S. mortgage market. It is the second-largest mortgage lender in the nation, with newly originated loans totaling $101 billion in unpaid principal balance for the twelve months ended June 30, 2024. Additionally, it is a top ten mortgage servicer, servicing loans totaling $633 billion in unpaid principal balance as of the same date.
PennyMac Mortgage Investment Trust , a mortgage real estate investment trust (REIT), primarily invests in residential mortgage loans and mortgage-related assets. It is managed by PNMAC Capital Management, LLC, a wholly-owned subsidiary of PennyMac Financial Services, Inc.
This leadership transition is based on a press release statement from PennyMac Financial Services, Inc. and PennyMac Mortgage Investment Trust.
In other recent news, PennyMac Financial Services has reported significant growth in its second quarter, with a net income of $98 million and a 50% increase in its quarterly common stock dividend to $0.30 per share. The company anticipates total originations of $1.7 trillion for 2024 and $2.1 trillion for 2025. Notably, PennyMac became the first servicer in the industry to incorporate the Veteran Affairs Service purchase program into its technology.
Piper Sandler has adjusted its financial outlook on PennyMac Financial, raising the price target to $112 while maintaining an Overweight rating. Similarly, BTIG updated its outlook on PennyMac Financial, increasing the price target from $105 to $115 while maintaining a Buy rating. Both firms highlighted PennyMac's resilient earnings profile and potential for improved earnings quality through operational efficiencies.
In financial terms, the company posted a pre-tax income of $41 million in its production segment and $89 million in its servicing segment. Additionally, PennyMac issued $650 million of new unsecured term notes, contributing to its total liquidity of $3.4 billion. These are among the recent developments for PennyMac Financial Services.
InvestingPro Insights
As PennyMac Financial Services, Inc. (NYSE: PFSI) undergoes this leadership transition, investors may find additional context from recent financial data and analyst insights valuable. According to InvestingPro, PFSI has demonstrated strong performance with a market capitalization of $5.66 billion and a revenue of $1.92 billion over the last twelve months as of Q2 2024. The company's revenue growth of 11.61% during this period, coupled with a robust quarterly revenue growth of 29.53% in Q2 2024, suggests that the company has been expanding its operations effectively.
InvestingPro Tips highlight that PFSI's net income is expected to grow this year, and analysts predict the company will remain profitable. This positive outlook aligns with the company's status as the second-largest mortgage lender in the nation. Additionally, PFSI has shown a strong return over the last three months, with a price total return of 18.89%, indicating investor confidence in the company's direction.
The appointment of Mark Elbaum to oversee capital markets and investments comes at a time when PFSI is experiencing significant market momentum. The stock has delivered a remarkable 76.76% price total return over the past year, showcasing its strong performance in the mortgage banking sector. This leadership change may be seen as an opportunity to further capitalize on the company's growth trajectory.
Investors considering PFSI might be interested to know that InvestingPro offers 12 additional tips for this stock, providing a more comprehensive analysis for those looking to delve deeper into the company's prospects.
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