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PennyMac CEO David Spector sells $1.05 million in stock

Published 12/06/2024, 05:35 PM
PFSI
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David Spector, Chairman and CEO of PennyMac Financial (NYSE:PFSI) Services, Inc. (NYSE:PFSI), has sold a total of 10,000 shares of the company's common stock, according to a recent SEC filing. The transactions, executed on December 4, 2024, were carried out under a pre-established Rule 10b5-1 trading plan. The shares were sold at prices ranging from $104.53 to $105.39, amounting to a total sale value of approximately $1.05 million. The sale comes as PFSI shares have gained 21% year-to-date, with the company currently valued at $5.49 billion. According to InvestingPro analysis, the stock is trading near its Fair Value, with analysts setting price targets between $112 and $135.

Following these transactions, Spector holds 170,604 shares through the ST Family Investment Company LLC. Additionally, he retains direct ownership of 634,612 shares, which include 44,582 restricted stock units set to vest into an equal number of common shares. InvestingPro subscribers can access 10+ additional exclusive insights about PFSI's financial health, including detailed analysis of its earnings potential and market positioning.

In other recent news, PennyMac Financial Services reported substantial growth in its Q3 earnings call. The company posted a net income of $69 million, showcasing a strong performance in its Production segment, driven by lower mortgage rates and increased refinancing activities. The servicing portfolio expanded to nearly $650 billion, servicing around 2.6 million customers. Despite a pretax loss in the servicing segment, CFO Dan Perotti remains optimistic about the company's future, anticipating operating ROEs to be in the high teens to low 20s for 2025.

The company also declared a quarterly dividend of $0.30 per share. The surge in jumbo loan activity from $22 million to $1 billion quarter-over-quarter indicates a strong market position. However, market activity did see a decline by 30% due to rising interest rates. These are the recent developments regarding PennyMac Financial Services.

Management expects a robust production income for Q4, with steady servicing margins of about 9.5 basis points. The company is well-positioned for growth in both production and servicing, irrespective of interest rate trends. PennyMac Financial is planning to manage capacity effectively in response to portfolio growth and maintain a cost-effective approach to hedging mortgage servicing rights.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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