“Pennymac” Bucking the Trend

November 2013 search results for the mortgage originator & refinancer Pennymac, saw a 116% increase in searches compared to the prior month.

I was curious to see how the google search rate stacked up against other mortgage originators involved in residential mortgage lending. So I conducted a review of search volume for the last three years. The results were very surprising:

Independent view of Pennymac search volume trend:

Pennymac_searchvolume
Pennymac_searchvolume

Pennymac compared against other mortgage originators:

13-12-15_penny_quicken_discover
13-12-15_penny_quicken_discover

Search Volume for other mortgage originators:

13-12-15_cashcall_pnc_gmac_homeloan search volume
13-12-15_cashcall_pnc_gmac_homeloan search volume

On a positive note, it seems that searches for PennyMac is bucking the overall trend; Over the last 12 months it has seen its search growth increase exponentially, while it’s competitors have a deteriorated.  

Despite this it seems that there is a bit of disconnect between Pennymac’s (mortgage trust) share value versus it’s search volume/financial performance. Since January 2013 the share price has depreciated from a high of ~$29 to the current price of ~$22,  this is despite significant revenue and earnings growth.

13-12-15_pennymac_shareprice
13-12-15_pennymac_shareprice

If Pennymac can continue the momentum in both financial performance and search volume, it may be a position to hold on to.

Happy Trading!

Trendvesting


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