Large PennyMac Stockholder Paring StakeTuesday, March 25, 2014
Shares of PennyMac Financial Services Inc. fell more than 6 percent Tuesday after its largest shareholder began selling off its stake.
Fidelity Investments Charitable Gift Fund in Boston has commenced a sale of more than 5.5 million shares of the Moorpark company’s common stock. According to PennyMac’s most recent earnings, it had 20.8 million shares outstanding. Prior to the sale, Fidelity’s stake was more than 29 percent and included about 6.1 million shares. After the sale, its stake will be about 2.6 percent.
The shares available in the offering were donated to the charitable fund by New York asset manager BlackRock Inc., which still has a position in the company, said Christopher Oltmann, director of investor relations with PennyMac.
Citigroup Global Markets Inc. is acting as the sole book-running manager and sole underwriter for the offering. Citigroup will have the option to purchase up to an additional 555,455 shares from Fidelity.
PennyMac is not selling any shares and will receive no compensation from the offering.
The sale comes a month after PennyMac reported profit and revenue figures in its fourth quarter that fell short of analysts’ estimates due to a drop in loan origination.
The Moorpark company reported net income of $6.4 million (32 cents) for the fourth quarter ended Dec. 31 on revenue of $90 million.
Analysts on average had expected net income of 34 cents a share on revenue of $101 million, according to Thomson Financial Network.
The company produces and services U.S. residential mortgage loans and is an affiliate of publicly held mortgage REIT PennyMac Mortgage Investment Trust. Stanford Kurland, the former president of Countrywide Financial, is chief executive of both companies.
Shares closed down $1.15, or nearly 6.3 percent, to $17.21 on the New York Stock Exchange.