PennyMac Financial Services (NYSE: PFSI) Chief Legal Officer Derek Stark executed an automatic sale of common stock on February 25, 2026, disposing of 1,903 shares at $91.50 per share for proceeds totaling approximately $174,124, according to a Form 4 filed with the Securities and Exchange Commission. The filing states the sale took place under a Rule 10b5-1 trading arrangement that Stark adopted on October 23, 2025.
One day earlier, on February 24, Stark had 345 shares withheld at $90.33 apiece, valued at $31,163. Those shares were surrendered to cover tax obligations associated with the vesting of restricted stock units (RSUs).
After these actions, Stark's direct holdings in PennyMac amount to 22,477 shares, which include 6,861 restricted stock units. The filings indicate the February 25 sale was automatic under the previously established trading plan rather than an ad hoc transaction.
These insider transactions occur against a backdrop of pronounced share weakness for PennyMac. The stock has fallen roughly 29% year-to-date and was trading at $92.89 near its 52-week low of $85.74 at the time of the report. An analysis cited from InvestingPro within the reporting notes that, at current prices, PennyMac's valuation metrics include a price-to-earnings ratio of 9.63 and a PEG ratio of 0.16, suggesting the service views the shares as appearing undervalued at those levels. The same note references additional InvestingPro resources including 12 extra tips and broader Pro Research coverage.
Company-specific performance has been challenged by recent quarterly results. PennyMac reported a Q4 2025 earnings per share of $1.97, below the forecasted $3.12, and revenue of $538 million versus an expected $637.49 million. In response to the earnings shortfall, Piper Sandler trimmed its price target on PennyMac Financial to $137.00 from $168.00 but kept an Overweight rating. The firm attributed the move to a "wide operating miss" driven in part by substantially lower servicing income as prepayment speeds increased, which the note says led to higher amortization.
Market reactions in the broader mortgage and consumer-lending sector have compounded pressures on PennyMac and peers. The report links part of the recent sector weakness to investor responses following President Donald Trump's nomination of Kevin Warsh for the Federal Reserve chair. As cited, Rocket Companies' shares fell 12% in that period, and other industry participants including loanDepot and UWM Holdings also registered declines. Those moves illustrate how both individual company results and macroeconomic or policy-related announcements are affecting valuations across the mortgage finance space.
No additional commentary was included in the filing about Stark's motivations beyond the established 10b5-1 plan. The transactions, regulatory filing details, company financial results, analyst actions, and sector movements are presented here as reported.