GHLD Stock Soars After Acquisition Deal Announced | GHLD Stock News

Guild Mortgage (GHLD, Financial) experienced a shift in its rating from BofA, moving from “Underperform” to “No Rating.” This change follows the announcement that Bayview Asset Management intends to purchase all remaining outstanding shares of Guild that it does not currently own. The acquisition is structured as an all-cash transaction, valuing each share at $20, culminating in a total equity value of approximately $1.3 billion.

This strategic move has led BofA to conclude that GHLD shares are no longer priced based on company fundamentals, as the stock is now influenced by the acquisition agreement. This development highlights the dynamic nature of stock valuations in response to corporate transactions.

Wall Street Analysts Forecast

Based on the one-year price targets offered by 6 analysts, the average target price for Guild Holdings Co (GHLD, Financial) is $16.08 with a high estimate of $19.00 and a low estimate of $13.00. The average target implies an downside of 18.61% from the current price of $19.76. More detailed estimate data can be found on the Guild Holdings Co (GHLD) Forecast page.

Based on the consensus recommendation from 7 brokerage firms, Guild Holdings Co’s (GHLD, Financial) average brokerage recommendation is currently 2.1, indicating “Outperform” status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.

Based on GuruFocus estimates, the estimated GF Value for Guild Holdings Co (GHLD, Financial) in one year is $20.23, suggesting a upside of 2.38% from the current price of $19.76. GF Value is GuruFocus’ estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business’ performance. More detailed data can be found on the Guild Holdings Co (GHLD) Summary page.

GHLD Key Business Developments

Release Date: May 07, 2025

• Loan Originations: $5.2 billion in Q1 2025, a 35% increase year over year.
• Adjusted EBITDA: $36.4 million in Q1 2025.
• Adjusted Net Income: $21.6 million in Q1 2025.
• Net Revenue: $198 million in Q1 2025, down from $232 million in the prior year.
• Net Loss: $24 million attributable to Guild in Q1 2025.
• Gain on Sale Margin: 376 basis points in Q1 2025.
• Servicing Portfolio: Grew to $94 billion.
• Cash and Cash Equivalents: $112 million as of March 31, 2025.
• Leverage Ratio: 1.6 times at quarter end.
• Tangible Net Book Value Per Share: $15.77.
• Share Repurchase: Approximately 35,000 shares repurchased at an average price of $12.94 per share.
• Special Cash Dividend: $0.50 per share declared and paid on Class A and Class B common stock.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Guild Holdings Co (GHLD, Financial) achieved a 35% year-over-year growth in originations, reaching $5.2 billion.
• The company reported a positive adjusted EBITDA of $36.4 million and adjusted net income of $21.6 million.
• Guild Holdings Co (GHLD) has more than doubled its loan officer headcount since the end of 2020, contributing to its growth strategy.
• The servicing portfolio expanded to over $94 billion, providing financial stability and supporting the ‘customers for life’ strategy.
• Guild Holdings Co (GHLD) continues to benefit from industry consolidation and maintains a strong brand presence, aiding in organic growth and market share gains.

Negative Points

• Net revenue decreased to $198 million compared to $232 million in the prior year and $373 million in the fourth quarter.
• The company reported a net loss of $24 million attributable to Guild Holdings Co (GHLD) compared to a net income of $28 million in the prior year.
• A downward valuation adjustment of MSRs resulted in a $70 million loss due to interest rate declines.
• The servicing segment reported a net loss of $5 million compared to a net income of $84 million in the prior year first quarter.
• Market conditions remain volatile, and the company anticipates continued fluctuations, impacting overall financial performance.

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