David Spector, Chairman and CEO of PennyMac Financial (NYSE:PFSI) 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 indicates the stock is currently trading below its Fair Value, with strong returns over both 5 and 10-year periods. The transactions were executed at prices ranging from $99.30 to $99.87 per share, amounting to a total value of approximately $496,919.
The sales were conducted automatically under a Rule 10b5-1 trading plan that Spector adopted 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 set to vest into an equal number of shares.
This activity comes as part of a planned trading strategy and reflects Spector's ongoing management of his investment in PennyMac.
In other recent news, PennyMac Financial Services has reported a significant rise in net income, reaching $69 million, and robust growth in its Production segment during the third quarter of 2024. The company's pretax income nearly tripled due to lower mortgage rates prompting refinancing, while the servicing portfolio expanded to service approximately 2.6 million customers. Despite a 30% decline in market activity due to rising interest rates, the Broker Direct channel increased its market share to 4%.
PennyMac has also decreased 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 Stockholder Agreement and the Third Amendment to the Amended and Restated Bylaws, reflecting the company's move to streamline its governance structure.
Financial services company, Jefferies, maintained a positive stance on PennyMac, reiterating a Buy rating. Jefferies predicts PennyMac's broker 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 83.37% revenue growth over the last twelve months. Jefferies has adjusted its earnings per share estimates for 2025 and 2026 to $13.53 and $15.94, respectively, based on this growth trajectory. These are the recent developments for PennyMac Financial Services.
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