Have Insiders Sold PennyMac Financial Services Shares Recently?

Some PennyMac Financial Services, Inc. (NYSE:PFSI) shareholders may be a little concerned to see that the President, Douglas Jones, recently sold a substantial US$2.7m worth of stock at a price of US$91.49 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.7%.

View our latest analysis for PennyMac Financial Services

The Last 12 Months Of Insider Transactions At PennyMac Financial Services

Notably, that recent sale by President Douglas Jones was not the only time they sold PennyMac Financial Services shares this year. Earlier in the year, they fetched US$80.38 per share in a -US$2.8m sale. That means that an insider was selling shares at slightly below the current price (US$91.29). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 5.6%of Douglas Jones's holding.

In the last year PennyMac Financial Services insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. PennyMac Financial Services insiders own 7.3% of the company, currently worth about US$338m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About PennyMac Financial Services Insiders?

Insiders haven't bought PennyMac Financial Services stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, PennyMac Financial Services has 4 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

Of course PennyMac Financial Services may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.