Doug Jones, Director, President, and Chief Mortgage Banking Officer at PennyMac Financial (NYSE:PFSI) Services, Inc. (NYSE:PFSI), a $5.2 billion market cap mortgage services company, recently sold 7,882 shares of the company's common stock. The transaction, conducted on December 26, 2024, was valued at approximately $813,107, with a weighted average selling price of $103.16 per share. Following this sale, Jones retains ownership of 450,000 shares through GR Family Investments LLC, and additional shares through The Jones Family Trust and direct holdings. The sale comes as PFSI trades near its 52-week high of $119.13, with InvestingPro analysis showing the stock currently trades at a P/E ratio of 30.5x despite strong revenue growth of 83% over the last twelve months. For deeper insights into insider transactions and comprehensive financial analysis, including 10 additional ProTips, check out the full PFSI Research Report on InvestingPro.
In other recent news, PennyMac Financial Services witnessed a significant rise in net income and robust growth in its Production segment for the third quarter of 2024. The company reported a net income of $69 million and an annualized return on equity of 8%. The company's CFO, Dan Perotti, expressed optimism about PennyMac Financial's future, predicting operating return on equities in the high teens to low 20s for 2025.
Jefferies, a financial services company, reiterated a Buy rating for PennyMac Financial Services, maintaining a positive stance on the company's stock. The firm also outlined potential 2025 catalysts, predicting that PennyMac's broker channel market share will grow to approximately 8% by 2026, up from the current 4%. Jefferies has adjusted its earnings per share estimates for 2025 and 2026 to $13.53 and $15.94, respectively.
Despite a 30% decline in market activity due to rising interest rates, the Broker Direct channel increased its market share to 4%. Furthermore, jumbo loan activity surged from $22 million to $1 billion quarter-over-quarter. However, the servicing segment reported a pretax loss of $15 million. These are recent developments that investors may want to keep an eye on.
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