WESTLAKE VILLAGE, Calif.—Gregory L. Hendry, Managing Director and Chief Accounting Officer of PennyMac Financial (NYSE:PFSI) Services, Inc. (NYSE:PFSI), executed stock transactions involving the company's common shares on November 20, 2024. According to a recent SEC filing, Hendry sold 3,032 shares of PennyMac stock at an average price of $102.09 per share, totaling approximately $309,546.
In a related transaction, Hendry acquired 3,032 shares of common stock through the exercise of stock options at a price of $17.52 per share. This acquisition was part of Hendry's compensation package, allowing him to purchase shares at a pre-determined price.
Following these transactions, Hendry now holds 48,040 shares of PennyMac, which includes 772 restricted stock units. These units are set to convert into an equal number of common shares upon vesting.
In other recent news, PennyMac Financial Services has reported a substantial growth in its third quarter earnings, with a net income of $69 million and an annualized return on equity (ROE) of 8%. The company's Production segment saw pretax income nearly triple due to lower mortgage rates prompting refinancing, and the servicing portfolio expanded to service approximately 2.6 million customers. Despite a pretax loss in the servicing segment, CFO Dan Perotti expressed optimism about the company's future, expecting operating ROEs to be in the high teens to low 20s for 2025.
In further developments, the company declared a quarterly dividend of $0.30 per share. Additionally, the company's jumbo loan activity surged from $22 million to $1 billion quarter-over-quarter. While market activity declined by 30% due to rising interest rates, the Broker Direct channel increased its market share to 4%.
These recent developments highlight the company's resilience in a fluctuating interest rate environment, leveraging lower mortgage rates to drive refinancing and expand its servicing portfolio. With a strategic focus on capacity management and technological innovation, PennyMac Financial Services is positioning itself for sustained growth and profitability in the coming years.
InvestingPro Insights
As Gregory L. Hendry adjusts his position in PennyMac Financial Services, Inc. (NYSE:PFSI), investors may find additional context in recent financial data and expert insights. According to InvestingPro, PennyMac's market capitalization stands at $5.34 billion, reflecting its significant presence in the financial services sector.
The company's performance has been noteworthy, with a substantial revenue growth of 83.37% over the last twelve months as of Q3 2024. This growth is particularly impressive when considering the quarterly revenue growth of 482.59% in Q3 2024. These figures align with an InvestingPro Tip indicating that net income is expected to grow this year, suggesting a positive outlook for the company's financial health.
Investors should note that PennyMac's stock has shown strong performance, with a one-year price total return of 34.29%. This robust return is complemented by a dividend yield of 1.15% and a remarkable dividend growth of 50% over the last twelve months, which may be attractive to income-focused investors.
While these metrics paint an optimistic picture, it's worth noting that PennyMac is trading at a P/E ratio of 30.94, which some may consider high. An InvestingPro Tip also points out that the stock price movements are quite volatile, which could be relevant to Hendry's recent transactions.
For a more comprehensive analysis, InvestingPro offers 11 additional tips on PennyMac Financial Services, providing deeper insights into the company's financial position and market performance.
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