Doug Jones, Director, President and Chief Executive Officer of Mortgage Banking at PennyMac Financial (NYSE:) Services, Inc. (NYSE:PFSI), a mortgage servicing company with a market cap of $5.2 billion, recently sold 7,882 shares of the company's common stock. The transaction, which occurred on December 26, 2024, was 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 sale comes as the PFSI trades near its 52-week high of $119.13. InvestingPro The analysis shows that the stock currently trades at a P/E ratio of 30.5 times despite strong revenue growth of 83% over the past twelve months. For deeper insights into insider transactions and comprehensive financial analysis, including 10 additional ProTips, see the full PFSI research report on InvestingPro.
In other recent news, PennyMac Financial Services saw a significant rise in net income and strong top line growth for the third quarter of 2024. The company reported net income of $69 million and an annual return on equity of 8%. The company's CFO, Dan Perotti, expressed optimism about PennyMac Financial's future, forecasting an operating return on the stock in the high teens to low 20s for 2025.
Jefferies, a financial services company, has reaffirmed a Buy rating on PennyMac Financial Services, while maintaining a positive stance on the company's shares. The company also identified potential catalysts for 2025, forecasting PennyMac's brokerage channel market share will grow to about 8% by 2026, up from the current 4%. Jefferies revised its EPS estimates for 2025 and 2026 to $13.53 and $15.94, respectively.
Despite a 30% drop in market activity due to rising interest rates, the direct broker channel increased its market share to 4%. Furthermore, jumbo loan activity increased from $22 million to $1 billion on a quarterly basis. However, the services segment reported a pre-tax loss of $15 million. These are the latest developments that investors may want to keep an eye on.
This article was created with the power of artificial intelligence and reviewed by an editor. For more information, see our terms and conditions.
