Doug Jones, director, president and chief mortgage banking officer at PennyMac Financial (NYSE:) Services, Inc. (NYSE:PFSI), a $5.2 billion mortgage services company, recently sold 7,882 shares of the company’s stock. The transaction, executed on December 26, 2024, is valued at approximately $813,107, with a weighted average sales 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 sell-off comes as PFSI is trading near its 52-week high of $119.13, with InvestingPro analysis showing that the stock currently trades at a P/E ratio of 30.5x despite strong revenue growth of 83% over the past twelve months. For deeper insight into insider trading and comprehensive financial analysis, including 10 additional expert tips, view the full PFSI research report on InvestingPro.
In other recent news, PennyMac Financial Services witnessed a significant increase in net income and strong growth in the manufacturing segment in the third quarter of 2024. The company reported net income of $69 million and an annualized return on equity of 8%. The company’s CFO, Dan Perotti, expressed optimism about the future of PennyMac Financial, predicting an operating return on the stock in the mid-teens to low 20s by 2025.
Jefferies, a financial services company, reiterated a Buy rating on PennyMac Financial Services, maintaining a positive view on the company’s stock. The company also outlined potential catalysts in 2025, predicting PennyMac’s brokerage channel market share to grow to approximately 8% by 2026, up from 4% now. Jefferies adjusted its 2025 and 2026 earnings per share estimates to $13.53 and $15.94, respectively.
Despite a 30% drop in market activity due to rising interest rates, the Broker Direct channel increased its market share to 4%. Furthermore, jumbo loan activity increased from $22 million to $1 billion compared to the prior quarter. However, the service segment posted a pre-tax loss of $15 million. These are recent developments that investors may want to watch out for.
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