Billionaire Leon Cooperman Buys Shares of PennyMac Financial Services Inc (PFSI)

Leon Cooperman has bought a total of 632,000 class A shares of PennyMac Financial Services Inc (NYSE:PFSI), a new filing revealed. The securities have been bought in three transactions for a price of $15.99 apiece. Following the deal, Mr. Cooperman holds a total of 100,000 shares directly and over 3.29 million shares through Omega Advisors.


Leon Cooperman Omega Advisors


PennyMac Financial Services Inc (NYSE:PFSI) is a financial services company that holds a mortgage platform and integrated business engaged in production and servicing of U.S. residential mortgage loans and management of investments related to the mortgage market. The company is currently conducting an underwritten secondary public offering of around 5.55 million shares of its Class A common stock. The offer will close on April 1, following which, the underwriters will receive under allotment option to acquire up to some 555,500 shares from the selling stockholder, Fidelity Investments Charitable Gift Fund, which will receive all the proceeds from the offering.


PennyMac Financial Services Inc (NYSE:PFSI) reported a net revenue of $386.6 million for the previous year, which is up by 46% on the year. The company also posted a net income of $1.41 per share, up from $0.91 a year earlier, but below the consensus estimate of $1.48. For the current quarter, PennyMac is expected to report an EPS of $0.41. The average recommendation for the stock is Hold, with the target price set at over $18, above the current price of the stock.


The stock of PennyMac Financial Services Inc (NYSE:PFSI) edged down by over 5% since the beginning of the year, and trails a P/E of 20.xx, slightly above the average for the mortgage investment companies P/E of 17.xx. Moreover, PennyMac trades at six times above its estimated earnings for the current year, and has a Price/Earnings to Growth ratio of around 0.4.


Another major shareholder of PennyMac Financial Services Inc (NYSE:PFSI) is Roberto Mignone‘s Bridger Management, which held 1.73 million shares at the end of last year, followed by Richard Mashaal‘s Rima Senvest Management with 855,600 shares.


Omega Advisors has an equity portfolio worth over $7.0 billion, divided primarily among Financial, Services and Basic Materials sectors. The largest holding is a $40.56 million stake in Sprint Corporation (NYSE:S), in which Omega owns 40.56 million shares. Moreover, Mr. Cooperman is bullish on American International Group Inc (NYSE:AIG), in which Omega owns 5.85 million shares, valued at $298.44 million.


Disclosure: none


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