PFSI Trading 5.6% Below Director's Recent Buy Price

There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on March 20, PennyMac Financial Services Inc 's Director, Patrick Kinsella, invested $98,880.72 into 5,800 shares of PFSI, for a cost per share of $17.05. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money. In trading on Friday, bargain hunters could buy shares of PennyMac Financial Services Inc (Symbol: PFSI) and achieve a cost basis 5.6% cheaper than Kinsella, with shares changing hands as low as $16.10 per share. PennyMac Financial Services Inc shares are currently trading down about 4.8% on the day. The chart below shows the one year performance of PFSI shares, versus its 200 day moving average:

PennyMac Financial Services Inc  Chart

Looking at the chart above, PFSI's low point in its 52 week range is $13.135 per share, with $39.57 as the 52 week high point — that compares with a last trade of $16.84. By comparison, below is a table showing the prices at which PFSI insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
03/19/2020 Andrew S. Chang Chief Financial Officer 35,841 $16.60 $594,842.32
03/20/2020 Patrick Kinsella Director 5,800 $17.05 $98,880.72

The current annualized dividend paid by PennyMac Financial Services Inc is $0.48/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 02/13/2020. Below is a long-term dividend history chart for PFSI, which can be of good help in judging whether the most recent dividend with approx. 2.7% annualized yield is likely to continue.


Click here to find out which 9 other dividend bargains you can buy cheaper than insiders »

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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