Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is PennyMac Financial Services Inc (PFSI) A Good Stock To Buy?

Seeing as PennyMac Financial Services Inc (NYSE:PFSI) has witnessed a declination in interest from the entirety of the hedge funds we track, logic holds that there was a specific group of fund managers who were dropping their full holdings heading into Q4. Intriguingly, Joseph A. Jolson’s Harvest Capital Strategies said goodbye to the largest position of the “upper crust” of funds tracked by Insider Monkey, worth close to $2.3 million in stock. Eric Halet and Davide Serra’s fund, Algebris Investments, also said goodbye to its stock, about $0.9 million worth. These transactions are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s go over hedge fund activity in other stocks similar to PennyMac Financial Services Inc (NYSE:PFSI). We will take a look at Elizabeth Arden, Inc. (NASDAQ:RDEN), Bridgepoint Education Inc (NYSE:BPI), LinnCo LLC (NASDAQ:LNCO), and Pfenex Inc (NYSEMKT:PFNX). This group of stocks’ market caps match PFSI’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
RDEN 8 22180 -1
BPI 11 38940 -4
LNCO 13 10754 5
PFNX 10 46939 2

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $30 million, lower than the $162 million in PFSI’s case. LinnCo LLC (NASDAQ:LNCO) is the most popular stock in this table with 13 funds holding long positions, while Elizabeth Arden, Inc. (NASDAQ:RDEN) is the least popular one. Compared to these stocks PennyMac Financial Services Inc (NYSE:PFSI) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...