PennyMac Financial Services Inc. late Wednesday announced it was starting a $50 million stock repurchase program, and the stock of the company bounced up on Thursday.
The Westlake Village mortgage loan and management firm will buy back its Class A common stock on the open market and in private transactions. At Thursday’s closing price, $50 million would buy almost 13 percent of the company’s outstanding shares.
Executive Chairman Stanford Kurland said the repurchase of the shares will enhance value for shareholders.
“Our strong capital position enables us to deploy capital in stock repurchases alongside our mortgage banking activities and potential MSR (mortgage servicing rights) acquisitions,” Kurland said in a prepared statement.
PennyMac (PFSI) will buy back the stock depending on its price, trading volume and general market conditions. The program has no expiration date.
Shares closed up 70 cents, or just more than 4 percent, to $17.05 on the New York Stock Exchange.