Guild Holdings stock downgraded by Citizens JMP after acquisition news

Citizens JMP downgraded Guild Holdings Co . (NYSE:GHLD) from Market Outperform to Market Perform on Wednesday following the company’s acquisition announcement. The stock has surged 32.35% in the past week and is currently trading at $19.72, near its 52-week high of $20.15.

Guild Holdings announced Wednesday that it agreed to be acquired by a fund managed by Bayview Asset Management, LLC, prompting the rating change from Citizens JMP.

The downgrade reflects Citizens JMP analyst Mikhail Goberman’s assessment that Guild Holdings shares are now fairly valued at approximately 11.5 times estimated 2025 earnings per share.

This valuation compares to a mortgage operating company peer group median of 10.3 times, according to the research firm’s analysis.

Citizens JMP cited "limited price appreciation potential" for Guild Holdings stock following the acquisition announcement as a key factor in its downgrade decision. This assessment aligns with current market indicators, as the stock’s RSI suggests it’s in overbought territory.

In other recent news, Guild Holdings Company reported its first-quarter 2025 earnings, revealing an earnings per share (EPS) of $0.35, which exceeded analyst expectations of $0.22. However, the company’s revenue was $198 million, falling short of the projected $259.66 million. Meanwhile, Bayview Asset Management announced plans to acquire Guild Holdings in an all-cash transaction valued at approximately $1.3 billion. Under the agreement, Guild stockholders will receive $20.00 per share, a 56% premium to the stock’s closing price on May 23, 2025.

In another development, JMP analysts reduced Guild Holdings’ stock price target from $16.50 to $15.50, while maintaining a Market Outperform rating. The analysts’ revision followed Guild’s first-quarter earnings report, which showed a GAAP EPS decline due to a negative fair value adjustment on the Mortgage Servicing Rights portfolio. Additionally, Guild’s annual meeting saw stockholders approve amendments to the company’s Articles of Incorporation, aligning with Delaware General Corporation Law, and the election of directors.

Furthermore, the appointment of KPMG LLP as Guild’s independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified. The acquisition by Bayview, expected to close in the fourth quarter of 2025, has already received stockholder approval from McCarthy Capital Mortgage Investors, LLC. Guild Holdings will continue to operate as a privately held independent entity post-acquisition, maintaining its brand and management team.

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