David Spector, President and CEO of PennyMac Financial (NYSE:) Services, Inc. (NYSE:PFSI), a $4.92 billion market cap company, recently sold shares of the company’s common stock. According to a Form 4 filing with the Securities and Exchange Commission, Spector sold a total of 5,000 shares on January 8, 2025. InvestingPro analysis shows that the stock is currently trading below its fair value, with strong 5- and 10-year returns. The transactions were executed at prices ranging from $99.30 to $99.87 per share, for a total value of approximately $496,919.
The sale was made automatically under a Rule 10b5-1 trading plan adopted by Spector on September 2, 2024. Following these transactions, Spector holds 165,604 shares indirectly through ST Family Investment Company LLC. Additionally, he directly owns 634,612 shares, which include 44,582 restricted stock units that transfer to an equal number of shares.
This activity comes as part of a planned trading strategy and reflects Spector’s ongoing management of its investment in PennyMac.
In other recent news, PennyMac Financial Services reported a significant increase in net income, reaching $69 million, and strong growth in its manufacturing segment during the third quarter of 2024. The company’s pretax income nearly tripled as lower mortgage rates spurred refinancing, while servicing the portfolio was expanded to approximately 2.6 million clients. Despite a 30% drop in market activity due to rising interest rates, the Broker Direct channel increased its market share to 4%.
PennyMac also reduced the size of its Board of Directors from thirteen to eleven members, following the retirements of James K. Hunt and Emily Youssouf. This adjustment was made through the adoption of the Fourth Amended and Restated Shareholders’ Agreement and the Third Amendment to the Amended and Restated Articles of Association, reflecting the company’s move to simplify its governance structure.
Financial services firm Jefferies maintained a positive view on PennyMac, reiterating a Buy rating. Jefferies predicts that PennyMac’s brokerage channel market share will grow to approximately 8% by 2026, a significant increase from the current 4%. This growth is in line with the company’s impressive revenue growth of 83.37% over the last twelve months. Jefferies adjusted its 2025 and 2026 earnings per share estimates to $13.53 and $15.94, respectively, based on this growth trajectory. These are the latest developments for PennyMac Financial Services.
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