Leon Cooperman, founder of hedge fund Omega Advisors Inc., a $5,997 million’s portfolio, during the month of April, increased his stake in Aspen Group Inc (ASPU), kept on trading Atlas Energy Group LLC (ATLS) and reduced his stake of PennyMac Financial Services Inc (PFSI) by 66.14%Â closing the month with 1,114,500 shares at an average price of $17.42/shares (an average loss of 8%)
*graph not updated with the last trade.
PennyMac Financial Services Inc has a market cap of 408.06 million and is a specialty financial services firm with a comprehensive mortgage platform and integrated business. The Company is engaged in the production and servicing of U.S. residential mortgage loans and the management of investments related to U.S. residential mortgage markets.
It is currently trading at P/E (ttm) ratio of 13.00 at cheap level compared to the Global Specialty Finance industry that has an average P/E (ttm) of 18.60. At the current price of $18.88, PFSI is trading -0.53% from its 52 weeks high and +36.51% from its 52-week low, with a rise over the last 12 months of about +20%.
The company has a financial strength of 8/10, with a cash to debt of 0.52 (against an industry median of 1.58) and an interest coverage of 5.99 (against an industry median of 1.23).
Returns are positive (ROE of 19.34%, ROA of 1.74% and ROC of 2011.88%) and are topping the industry, being better than 92% of PFSI’s competitors.
Leon Cooperman is still the main holder of the company with 5.16% of shares outstanding, followed by George Soros (0.87%) and Jim Simons (0.11%)
During the fourth quarter, the company faced a drop of the pretax income of $53.2 million, down 15% from the prior quarter, but about the whole year 2014 all numbers are up; pretax income +22% (from the prior year) and total net revenue +34%.
Stanford L. Kurland, chairman and chief executive officer, said, "PennyMac Financial continued to grow its core mortgage banking businesses during the fourth quarter with strong performance in consumer direct originations and loan servicing portfolio growth. The mortgage origination market is gaining momentum with the low interest rate environment, and the FHA's recent reduction to its annual mortgage insurance premiums makes mortgage financing more affordable for many borrowers. Industry forecasts expect these factors to lead to an increase in refinance and home purchase activity, and we believe that PFSI is well positioned to capture these opportunities, evidenced by our growing consumer direct origination activities and the pending bulk acquisitions of $21 billion in UPB of Agency MSRs."
On May 6, 2015, the company will announce the results for the first quarter of 2015
