David Spector, the chairman and chief executive officer of PennyMac Financial Services, Inc. (NYSE:PFSI), completed the sale of common stock valued at a total of $1.22 million on February 19, 2026, according to a Form 4 filing with the Securities and Exchange Commission.
The transactions were carried out at execution prices ranging from $93.97 to $95.81 per share. Specifically, Spector sold 5,826 shares at a weighted average price of $93.97, 2,451 shares at a weighted average price of $94.85, and 1,723 shares at a weighted average price of $95.81. Those lots were indirectly owned through ST Family Investment Company LLC. In addition, Spector disposed of directly owned stock comprising 1,689 shares at $93.97, 733 shares at $94.85, and 528 shares at $95.81.
The filings state the trades were executed automatically under a Rule 10b5-1 trading plan that Spector adopted on August 8, 2025. After these dispositions, Spector's direct stake stands at 541,732 shares, which includes 50,172 restricted stock units, while indirect holdings through ST Family Investment Company LLC total 90,604 shares.
PennyMac's share price at the time of reporting is $92.23, a level that represents a roughly 30% decline year-to-date. The company is a mortgage finance firm with a market capitalization of $4.81 billion, and its stock is trading below the execution prices recorded in the Form 4 submission.
Separately, PennyMac reported a meaningful earnings shortfall for the fourth quarter of 2025. The company posted earnings per share of $1.97, missing consensus expectations of $3.12. Revenue for the quarter was $538 million, falling short of the $637.49 million forecast. Despite the miss, the share price registered a modest uptick on investor reactions that weighed near-term operational performance against longer-term strategy.
Following the quarterly results, Piper Sandler lowered its price target for PennyMac Financial to $137.00 from $168.00 while keeping an Overweight rating. The investment bank attributed the cut to a "wide operating miss" driven by lower servicing income and higher amortization expense.
Market-wide dynamics added to the pressure on mortgage-related equities. The mortgage sector experienced a sell-off after former U.S. President Donald Trump nominated Kevin Warsh as the next Federal Reserve chairman. The announcement affected multiple companies in the space, and Rocket Companies experienced a notable 12% decline amid the broader pullback. PennyMac's own results, coupled with the Fed nomination news, were cited as contributors to the sector's downward movement.
One analytics provider's assessment included in public reporting indicates PFSI may be undervalued at current price levels. That analysis is part of a broader set of research tools and reports available to subscribers evaluating PFSI and a large universe of U.S. equities.
The Form 4 filing and the sequence of events underscore several concurrent developments for PennyMac: an automated insider sale under an established trading plan, a quarter that missed earnings and revenue expectations, and external macro and policy-related volatility affecting mortgage lenders. Each item is reflected in SEC disclosures and published analyst commentary.