Guild Holdings stock downgraded to Hold by Jefferies following Bayview acquisition

Investing.com - Jefferies downgraded Guild Holdings Co . (NYSE:GHLD) from Buy to Hold on Monday, while raising its price target to $20.00 from $16.00 following Bayview Asset Management’s acquisition announcement. The stock, currently trading at $19.84, is approaching its 52-week high of $20.15, with a market capitalization of $1.24 billion.

Bayview Asset Management announced on June 18, 2025, that it will acquire Guild for $20 per share, valuing the transaction at approximately $1.3 billion. The acquisition is structured as a friendly take-private transaction and is expected to close in the fourth quarter of 2025. InvestingPro data shows the stock’s RSI indicates overbought territory, with the shares having gained nearly 58% over the past six months.

Bayview already owns 7.3% of Guild’s shares, and according to Jefferies, there are no known regulatory or financing concerns that could impede the deal. Guild shareholders are expected to receive a $0.25 per share special dividend prior to the transaction’s closing.

Guild Holdings primarily operates as a retail distributed lender with 88% of its first-quarter 2025 originations coming from purchase transactions, compared to the industry average of approximately 71%. The company also services a $94 billion unpaid principal balance portfolio. With annual revenue of $1.13 billion and a healthy current ratio of 2.26, InvestingPro analysis reveals 8 additional key insights available to subscribers.

Jefferies noted that Guild shares are likely to trade close to the $20 acquisition price until the deal closes, reflecting the company’s hybrid business model that balances origination profitability with recurring servicing income.

In other recent news, Guild Holdings Company announced that it will be acquired by Bayview Asset Management in an all-cash transaction valued at approximately $1.3 billion. Under the terms of the agreement, Guild stockholders are set to receive $20.00 per share in cash, representing a 56% premium over the closing stock price before the announcement. The acquisition has already secured stockholder approval and is expected to close in the fourth quarter of 2025, with Guild continuing to operate as a privately held entity. Following this announcement, Citizens JMP downgraded Guild Holdings from Market Outperform to Market Perform, citing limited price appreciation potential. Meanwhile, Guild’s recent first-quarter earnings report showed an adjusted EPS of $0.35, surpassing analyst expectations. However, the company also reported a GAAP EPS loss of ($0.39) due to a significant fair value mark on its Mortgage Servicing Rights portfolio. In addition, Guild’s annual meeting led to the approval of amendments to its Articles of Incorporation and the election of two directors. Finally, JMP analysts revised Guild’s stock price target to $15.50, maintaining a Market Outperform rating.

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