Insider Trading February 13, 2026

PennyMac Director Makes $200,587 Purchase as Firm Reports Q4 Earnings Shortfall

Patrick Kinsella adds to his stake as PennyMac posts a wide operating miss and shares trade well below year-to-date highs

By Avery Klein PFSI
PennyMac Director Makes $200,587 Purchase as Firm Reports Q4 Earnings Shortfall
PFSI

Patrick Kinsella, a director at PennyMac Financial Services, acquired 2,250 shares on February 12, 2026, for $200,587, following a grant of 1,963 restricted stock units on February 11, 2026. The company reported a Q4 2025 earnings and revenue shortfall that prompted Piper Sandler to reduce its price target, while the mortgage sector experienced broader volatility tied to a high-profile Federal Reserve nomination.

Key Points

  • PennyMac director Patrick Kinsella purchased 2,250 shares on February 12, 2026, for $200,587 at $89.15 per share and received 1,963 restricted stock units on February 11, 2026.
  • PennyMac reported a Q4 2025 EPS of $1.97 and revenue of $538 million, both below expectations, prompting Piper Sandler to cut its price target to $137.00 while keeping an Overweight rating.
  • The mortgage sector saw broader weakness, including a 12% drop in Rocket Companies after a Federal Reserve nomination, and pennyMac shares were down nearly 30% year-to-date but rose 1.85% in the latest session.

Patrick Kinsella, who serves on the board of PennyMac Financial Services, Inc., purchased 2,250 shares of the company's common stock on February 12, 2026. The transaction was executed at $89.15 per share for a total outlay of $200,587.

The $89.15 purchase price was slightly below PennyMac's then-current trading price of $92.01, representing an immediate paper improvement of roughly 3.2% on that position relative to the quoted market price.

One day earlier, on February 11, 2026, Kinsella received 1,963 shares in the form of restricted stock units in connection with his service as a Director. Taken together with his prior holdings, Kinsella now directly owns 34,210 shares of PennyMac Financial Services, inclusive of 3,510 restricted stock units and 30,700 shares of common stock.

Valuation metrics and dividend information were also noted in available analysis. PennyMac is trading at a price-to-earnings ratio of 9.92 and is down nearly 30% year-to-date. The company yields 1.3% and has a record of paying dividends for nine consecutive years.


Those company-level developments come against a backdrop of disappointing fourth-quarter financial results for fiscal 2025. PennyMac reported earnings per share of $1.97 for Q4 2025, which fell short of an expected $3.12. Revenue for the quarter was $538 million, below the consensus estimate of $637.49 million.

Following the earnings release, Piper Sandler reduced its price target on PennyMac Financial to $137.00 from $168.00, while maintaining an Overweight rating on the stock. The firm attributed its adjustment to a "wide operating miss," citing lower servicing income associated with increased prepayment speeds that led to higher amortization.

The timing of the results and subsequent analyst action coincided with turbulence across the mortgage and broader housing finance sector. Rocket Companies' stock fell by 12% after U.S. President Donald Trump nominated Kevin Warsh to be the next Federal Reserve chairman. That development, together with PennyMac's earnings shortfall, contributed to a sector-wide pullback affecting other mortgage lenders such as loanDepot and UWM Holdings.

Despite the quarterly setback, PennyMac's shares finished the most recent trading session up 1.85%, indicating some investor willingness to look through the immediate miss. At the same time, market participants continue to weigh the company's lower servicing income and the implications of higher prepayment speeds on future performance.

Kinsella's purchases — the RSU grant on February 11 and the open-market acquisition on February 12 — increase his direct ownership stake amid a period of pronounced share-price volatility and mixed fundamental signals. The combination of insider buying, a valuation that some analysis describes as below Fair Value, and recent earnings weakness will likely shape investor discussion of PennyMac's near-term outlook.

Risks

  • PennyMac's Q4 2025 results showed a substantial earnings and revenue miss, indicating operational pressures that could affect future profitability - impacts concentrated in mortgage servicing and financials.
  • Lower servicing income and increased prepayment speeds led to higher amortization, a dynamic that could continue to pressure margins in the mortgage-lending and servicing segments.
  • Broader market and policy-driven volatility, exemplified by a 12% decline in Rocket Companies after a Federal Reserve nomination, can produce sector-wide sell-offs that affect mortgage lenders and related financial firms.

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