It seems Alan Fournier believes it is a good time to buy Ocwen Financial Corp (NYSE:OCN) shares. As reported in a recent filing with the Securities and Exchange Commission, Fournier’s fund, Pennant Capital Management, has increased its stake in the company by 75% to 9.44 million shares. As a result, Fournier and Pennant Capital now have control over 7.2% of the company’s common stock.
Jonathon Jacobson is also bullish on Ocwen Financial Corp (NYSE:OCN) and has boosted his fund’s stake in the company by 342% during the second quarter of 2014. His fund, Highfields Capital Management, holds 4.61 million shares worth $171 million, as reported in its latest 13F filing. Ocwen Financial Corp (NYSE:OCN) occupies roughly 9% of White Elm Capital’s equity portfolio and constitutes Matthew Iorio‘s biggest bet: 3.08 million shares valued at $114 million. Leon Cooperman has also reported a massive increase in his stake in Ocwen Financial Corp (NYSE:OCN) during the same period of time. His fund, Omega Advisors, currently holds 2.58 million shares worth $95.8 million.
Ocwen Financial Corp (NYSE:OCN) engages in originating and servicing mortgage loans. So far this year, the stock has lost more than half of its value, falling from $54.89, the opening price on January 2, to a current price of $26.02 per share. This gives the company a market cap of $3.41 billion and a trailing Price to Earnings (P/E) ratio of 11.81. The stock also carries a beta of 0.66, which signals low volatility. For the quarter ending June 30, 2014, Ocwen Financial Corp (NYSE:OCN) has posted earnings of $0.48 per share derived from revenues of $553 million, up 1.5% year-over-year. Analysts expect revenues of $544 million and earnings per share of $0.64 for the third quarter.
Alan Fournier is also optimistic about the prospects of Monsanto Company (NYSE:MON), having initiated a position for his fund during the second quarter of this year. Pennant Capital has reported ownership of 2.13 million shares valued at more than $265 million in its latest 13F filing. Fournier’s biggest bet continues to be TransDigm Group Incorporated (NYSE:TDG): 2.13 million shares worth in excess of $357 million.