Insider Trading Report: PennyMac Financial (PFSI)

Farhad Nanji, a director at PennyMac Financial (PFSI) recently added 187,870 shares. The buy increased his holdings by nearly 7 percent, and came to a total purchase price of $11.7 million.

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  • This follows up from other buys from the director in the past month. Overall, company insiders have been particularly active on both sides, although total insider sales greatly outnumber insider buys. Despite the massive insider sales lately, insiders still own 49 percent of company shares.

    The mortgage financing company has pulled back from highs in recent weeks, but shares are still up 82 percent over the past year.

    Sporting a 41 percent profit margin and trading at less than 4 times forward earnings, the company is in a strong position to benefit from trends in the housing market.

    Action to take: Investors may like shares on any pullback. The company recently boosted its dividend payment, and shares now yield 1.3 percent.

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  • For traders, shares have rebounded from oversold levels in recent weeks, so the uptrend in shares is likely to continue. The August $65 calls, trading for about $2.60, are about midway between the current share price and the prior all-time high near $70. Traders can potentially nab mid to high double-digit profits on a continued rally in shares in the coming weeks.

     

    Disclosure: The author of this article has no positions in the stock mentioned here, but may make a trade on this company after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.