PennyMac Financial Services Sees Unusually Large Options Volume (NYSE:PFSI)

PennyMac Financial Services, Inc. (NYSE:PFSI) saw unusually large options trading on Friday. Stock investors acquired 3,076 put options on the stock. This represents an increase of 566% compared to the average daily volume of 462 put options.

PennyMac Financial Services Stock Down 33.3%

Shares of NYSE:PFSI opened at $99.91 on Friday. PennyMac Financial Services has a fifty-two week low of $85.74 and a fifty-two week high of $160.36. The firm’s 50 day moving average price is $137.44 and its 200 day moving average price is $123.17. The company has a quick ratio of 0.36, a current ratio of 0.36 and a debt-to-equity ratio of 3.01. The stock has a market cap of $5.19 billion, a price-to-earnings ratio of 10.74, a price-to-earnings-growth ratio of 0.68 and a beta of 1.57.

PennyMac Financial Services (NYSE:PFSI) last announced its quarterly earnings data on Thursday, January 29th. The real estate investment trust reported $1.97 EPS for the quarter, missing analysts’ consensus estimates of $3.23 by ($1.26). PennyMac Financial Services had a net margin of 24.48% and a return on equity of 10.36%. The firm had revenue of $538.01 million during the quarter, compared to analysts’ expectations of $639.81 million. During the same period in the prior year, the company posted $1.95 earnings per share. The company’s revenue for the quarter was up 14.4% on a year-over-year basis. As a group, equities research analysts predict that PennyMac Financial Services will post 13.77 earnings per share for the current fiscal year.

PennyMac Financial Services Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, February 26th. Shareholders of record on Monday, February 16th will be issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend is Friday, February 13th. PennyMac Financial Services’s payout ratio is 12.93%.

Insiders Place Their Bets

In other news, CEO David Spector sold 10,000 shares of the stock in a transaction on Tuesday, January 13th. The stock was sold at an average price of $145.19, for a total transaction of $1,451,900.00. Following the completion of the transaction, the chief executive officer directly owned 100,604 shares in the company, valued at approximately $14,606,694.76. This represents a 9.04% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Doug Jones sold 23,453 shares of the business’s stock in a transaction dated Monday, November 10th. The shares were sold at an average price of $127.56, for a total transaction of $2,991,664.68. Following the completion of the sale, the director owned 19,056 shares in the company, valued at approximately $2,430,783.36. This trade represents a 55.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 80,076 shares of company stock valued at $10,512,190. 15.80% of the stock is currently owned by insiders.

Institutional Investors Weigh In On PennyMac Financial Services

Several hedge funds and other institutional investors have recently made changes to their positions in PFSI. Creative Planning raised its position in shares of PennyMac Financial Services by 89.5% during the 2nd quarter. Creative Planning now owns 13,495 shares of the real estate investment trust’s stock worth $1,345,000 after purchasing an additional 6,374 shares during the last quarter. Vise Technologies Inc. purchased a new position in PennyMac Financial Services during the second quarter worth $383,000. American Century Companies Inc. raised its holdings in shares of PennyMac Financial Services by 15.0% in the second quarter. American Century Companies Inc. now owns 399,388 shares of the real estate investment trust’s stock worth $39,795,000 after acquiring an additional 52,227 shares during the last quarter. Lightrock Netherlands B.V. raised its holdings in shares of PennyMac Financial Services by 5.2% in the second quarter. Lightrock Netherlands B.V. now owns 143,113 shares of the real estate investment trust’s stock worth $14,260,000 after acquiring an additional 7,058 shares during the last quarter. Finally, Norges Bank purchased a new stake in shares of PennyMac Financial Services in the second quarter valued at $39,976,000. Institutional investors and hedge funds own 57.87% of the company’s stock.

Analyst Ratings Changes

A number of equities analysts recently commented on PFSI shares. Wall Street Zen cut PennyMac Financial Services from a “buy” rating to a “hold” rating in a report on Sunday, January 18th. Wells Fargo & Company reduced their price target on shares of PennyMac Financial Services from $150.00 to $135.00 and set an “overweight” rating on the stock in a research report on Friday. Jefferies Financial Group began coverage on shares of PennyMac Financial Services in a report on Friday, December 19th. They issued a “buy” rating and a $160.00 price objective for the company. Piper Sandler cut their target price on shares of PennyMac Financial Services from $168.00 to $137.00 and set an “overweight” rating on the stock in a research note on Friday. Finally, Zacks Research raised shares of PennyMac Financial Services to a “hold” rating in a research report on Friday, December 19th. Five analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat, PennyMac Financial Services currently has an average rating of “Moderate Buy” and an average price target of $143.71.

Key Stories Impacting PennyMac Financial Services

Here are the key news stories impacting PennyMac Financial Services this week:

• Positive Sentiment: PFSI declared a quarterly cash dividend of $0.30/share (record Feb 16, payable Feb 26) — supports yield and income-minded holders. PennyMac Reports Q4 & Full‑Year 2025 Results
• Neutral Sentiment: Some brokers still rate PFSI “overweight”/”moderate buy” despite cutting price targets (Barclays: $158→$136; Wells Fargo: $150→$135), which signals confidence in recovery longer term even as near-term estimates are trimmed. Benzinga
• Neutral Sentiment: Company provided an earnings presentation and call transcript that investors should review for management commentary on margin outlook and mortgage margin drivers. Q4 Presentation / Press Release
• Negative Sentiment: PFSI missed Q4 EPS and revenue estimates (EPS $1.97 vs. consensus $3.23; revenue $538M vs. $640M consensus); management flagged margin pressure — the primary driver of the sharp selloff. Seeking Alpha: Shares Sink After Earnings Miss
• Negative Sentiment: Multiple law firms (BFA Law) launched securities‑fraud investigations following the post‑earnings share drop, which can increase legal risk, headline volatility and selling pressure. GlobeNewswire: BFA Law Investigation Alert BusinessWire: BFA Law Launches Investigation
• Negative Sentiment: Unusually large options activity: traders bought ~3,076 puts (≈566% above normal), signaling speculative or hedging bearish interest that can accelerate downward moves. (No external link)
• Negative Sentiment: Trading volume and volatility spiked on the selloff — heavy volume usually amplifies price moves and can create short‑term downside as liquidity is absorbed. Yahoo Finance: Q4 Miss & Stock Drop

About PennyMac Financial Services

PennyMac Financial Services, Inc (NYSE: PFSI) is a leading mortgage banking company based in Westlake Village, California. The firm operates through two primary business segments: Production and Mortgage Servicing Rights (MSR). In its Production segment, PennyMac originates residential mortgage loans through retail, wholesale and correspondent channels, focusing on both purchase and refinance transactions. The MSR segment involves the acquisition and servicing of mortgage loans, whereby the company earns fees for managing loan portfolios on behalf of investors.

Since its founding in 2008, PennyMac has grown through a combination of organic origination and strategic acquisition of servicing rights, positioning itself as one of the largest residential mortgage loan servicers in the United States.