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

Recommended Reading:

Leon Cooperman is Bullish on London-listed Monitise Plc (MONI) and Raises Stake to 10.9%

Leon Cooperman Discusses His Favorite Picks: American International Group Inc (AIG), SandRidge Energy Inc. (SD) & Others

Leon Cooperman Is Betting on These Stocks

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!