PennyMac Financial Services and Franklin BSP Realty Trust Shares Are Soaring, What You Need To Know

What Happened?

A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official boosted hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Thrifts & Mortgage Finance company PennyMac Financial Services (NYSE:PFSI) jumped 2.7%. Is now the time to buy PennyMac Financial Services? Access our full analysis report here, it’s free for active Edge members.
• Thrifts & Mortgage Finance company Franklin BSP Realty Trust (NYSE:FBRT) jumped 2.6%. Is now the time to buy Franklin BSP Realty Trust? Access our full analysis report here, it’s free for active Edge members.

Zooming In On PennyMac Financial Services (PFSI)

PennyMac Financial Services’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 24 days ago when the stock dropped 3.1% on the news that the company's Chairman and CEO, David Spector, sold a significant amount of stock. According to filings, Spector sold 71,161 shares for a total value of approximately $9.1 million. Large stock sales by top executives can often cause concern for investors. This type of action is sometimes seen as a sign that leadership may believe the stock's value is at a high point or that they have concerns about the company's near-term performance. The size of this particular sale likely contributed to the negative investor sentiment that pushed the shares lower.

PennyMac Financial Services is up 26.6% since the beginning of the year, and at $126.41 per share, it is trading close to its 52-week high of $132.96 from October 2025. Investors who bought $1,000 worth of PennyMac Financial Services’s shares 5 years ago would now be looking at an investment worth $2,213.

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