PennyMac Financial Services Named High Dividend Stock with Insider Buys and 1.26% Yield (PFSI)


IIn this series, we look at the most recent Dividend Channel “DividendRank” report and then select only those companies that have been the subject of insider buying in the past six months. Executives and directors of a company tend to have a unique insider perspective on the company, and the only reason an insider would choose to take their hard-earned money and use it to buy stocks is in the open market is that he expects to make money – maybe they find the stock very undervalued, or maybe they see some exciting progress within the company, or maybe both. So when stocks come up that see insiders buy and are also top ranked, investors are advised to take note. One such company is PennyMac Financial Services Inc (ticker: PFSI), which was purchased by Director Partners, LP Mfn.

On June 22, Mfn invested $ 1,664,101.44 in 26,528 shares of PFSI, at a cost per share of $ 62.73. In Friday’s trading, bargain hunters could buy shares of PennyMac Financial Services Inc (ticker: PFSI) and hit a base cost 0.3% cheaper than Mfn, with stocks changing hands as low as $ 62.57 per share. It should be noted that Mfn has received $ 0.20 / share in dividends since the time of their purchase, so they are currently up 0.1% on their purchase on a total return basis. Shares of PennyMac Financial Services Inc are currently trading at -0.76% on this day. The chart below shows the one-year performance of PFSI stocks, compared to its 200-day moving average:

Looking at the chart above, the low point of PFSI in its 52 week range is $ 49.6674 per share, with $ 70.99 as the 52 week high, compared with a last trade of 63.00 $. For comparison, here’s a table showing the prices at which insider buys were recorded in the past six months:

Purchased Initiated Title Actions Price / share Value
03/26/2021 Farhad Nanji Director 198,040 $ 63.93 $ 12,660,301.92
03/26/2021 Partners, LP Mfn Director 198,040 $ 63.93 $ 12,660,301.92
03/29/2021 Farhad Nanji Director 94 106 $ 64.40 $ 6,060,426.40
03/29/2021 Partners, LP Mfn Director 94 106 $ 64.40 $ 6,060,426.40
05/11/2021 Farhad Nanji Director 298 655 $ 57.93 $ 17,302,503.45
05/11/2021 Partners, LP Mfn Director 298 655 $ 57.93 $ 17,302,503.45
05/13/2021 Farhad Nanji Director 369,324 $ 57.84 $ 21,362,114.39
05/13/2021 Partners, LP Mfn Director 369,324 $ 57.84 $ 21,362,114.39
05/17/2021 Farhad Nanji Director 182,798 $ 60.44 $ 11,048,912.12
05/17/2021 Partners, LP Mfn Director 182,798 $ 60.44 $ 11,048,912.12
05/19/2021 Farhad Nanji Director 120 960 $ 60.88 $ 7,363,638.19
05/21/2021 Partners, LP Mfn Director 103,586 $ 61.46 $ 6,366,163.56
05/21/2021 Farhad Nanji Director 103,586 $ 61.46 $ 6,366,163.56
05/26/2021 Farhad Nanji Director 12 842 $ 61.49 $ 789,654.58
05/26/2021 Partners, LP Mfn Director 12 842 $ 61.49 $ 789,654.58
05/21/2021 Farhad Nanji Director 103,586 $ 61.46 $ 6,366,163.56
05/25/2021 Farhad Nanji Director 187 870 $ 62.49 $ 11,739,078.40
05/25/2021 Partners, LP Mfn Director 187 870 $ 62.49 $ 11,739,078.40
06/01/2021 Farhad Nanji Director 46,990 $ 62.67 $ 2,944,863.30
06/01/2021 Partners, LP Mfn Director 46,990 $ 62.67 $ 2,944,863.30
06/01/2021 Farhad Nanji Director 46,990 $ 62.67 $ 2,944,863.30
07/06/2021 Farhad Nanji Director 138,232 $ 60.64 $ 8,382,743.76
07/06/2021 Partners, LP Mfn Director 138,232 $ 60.64 $ 8,382,743.76
08/06/2021 Partners, LP Mfn Director 38,743 $ 61.85 $ 2,396,254.55
08/06/2021 Farhad Nanji Director 38,743 $ 61.85 $ 2,396,254.55
08/06/2021 Partners, LP Mfn Director 38,743 $ 61.85 $ 2,396,254.55
08/06/2021 Farhad Nanji Director 38,743 $ 61.85 $ 2,396,254.55
05/19/2021 Partners, LP Mfn Director 120 960 $ 60.88 $ 7,363,638.19
06/14/21 Partners, LP Mfn Director 192 824 $ 61.89 $ 11,933,904.00
06/16/2021 Farhad Nanji Director 193,915 $ 61.95 $ 12,013,905.95
06/21/2021 Farhad Nanji Director 109,782 $ 62.07 $ 6,813,861.66
06/21/2021 Partners, LP Mfn Director 109,782 $ 62.07 $ 6,813,861.66
06/21/2021 Farhad Nanji Director 109,782 $ 62.07 $ 6,813,861.66
06/21/2021 Partners, LP Mfn Director 109,782 $ 62.07 $ 6,813,861.66
06/22/2021 Partners, LP Mfn Director 26,528 $ 62.73 $ 1,664,101.44
06/22/2021 Farhad Nanji Director 26,528 $ 62.73 $ 1,664,101.44
06/22/2021 Partners, LP Mfn Director 26,528 $ 62.73 $ 1,664,101.44
06/22/2021 Farhad Nanji Director 26,528 $ 62.73 $ 1,664,101.44
06/14/21 Farhad Nanji Director 192 824 $ 61.89 $ 11,933,904.00
06/16/2021 Partners, LP Mfn Director 193,915 $ 61.95 $ 12,013,905.95

The DividendRank report noted that among the hedging universe, PFSI stocks displayed both attractive valuation metrics and strong profitability metrics. The report also cited the strong history of quarterly dividends from PennyMac Financial Services Inc, and long-term favorable multi-year growth rates in key fundamental data points.

The report said, “Dividend investors who approach investing from a value perspective are generally more interested in finding the strongest, most profitable companies, which are also trading at an attractive valuation. This is what we seek to find by using our exclusive DividendRank formula, which ranks the hedging universe according to our various profitability and valuation criteria, to generate a list of the most “interesting” stocks, intended for investors. as a source of ideas that deserves further research. ”

The annualized dividend paid by PennyMac Financial Services Inc is $ 0.8 / share, currently paid in quarterly installments, and its most recent ex-dividend date was 8/13/2021. Below is a chart of PFSI’s long-term dividend history, which the report highlighted as being of utmost importance. Indeed, studying a company’s past dividend history can be of great help in judging whether the most recent dividend is likely to continue.

PFSI + Dividend + History + Graph

Most Dividend Listed Stocks with Insider Buys ”

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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