PennyMac’s chief digital officer sells $100,008 in stock

WESTLAKE VILLAGE, Calif.—James Follette, Chief Digital Officer of PennyMac Financial Services, Inc. (NYSE:PFSI), recently sold a portion of his holdings in the company. According to a regulatory filing, Follette sold 992 shares of common stock on March 6 at an average price of $100.815 per share, amounting to a total transaction value of $100,008. The transaction comes as InvestingPro data shows PFSI trading at a relatively low P/E ratio of 16.7, with the stock currently priced at $101.72.

Following this sale, Follette retains ownership of 7,338 restricted stock units, which are set to be converted into an equal number of shares of common stock upon vesting. The transaction was part of Follette’s direct ownership in the company. According to InvestingPro analysis, the company shows strong profitability with a gross margin of 90.5%.

PennyMac Financial Services, headquartered in Westlake Village, California, operates as a mortgage banker and loan correspondent. With a market capitalization of $5.24 billion, analysts maintain a bullish outlook on the stock, with price targets ranging from $111 to $141 per share. For deeper insights into PFSI’s valuation and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, PennyMac Financial Services, Inc. reported its fourth-quarter 2024 earnings, revealing a significant shortfall in both earnings per share (EPS) and revenue. The company posted an EPS of $1.95, falling short of the forecasted $3.03, and revenue of $470.11 million, which was below the expected $531.7 million. Despite these misses, PennyMac has been actively managing its debt portfolio through strategic financial maneuvers. The company announced the closing of an $850 million offering of senior notes due 2033, with proceeds earmarked for repaying certain debts and supporting general corporate activities. Additionally, PennyMac plans to offer $650 million of senior notes, contingent upon market conditions, to further bolster its financial position.

Analysts from Wells Fargo (NYSE:WFC) noted a downgrade in PennyMac’s operating return on equity (ROE) guidance for 2025, reflecting a more conservative outlook. However, PennyMac continues to focus on growth, with a 13% increase in loan originations and acquisitions reported in the last quarter. The company’s servicing portfolio also expanded significantly, demonstrating robust growth in its core operations. As PennyMac navigates market volatility, it remains committed to enhancing operational efficiency and leveraging its balanced business model to drive future performance.

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