Guild Holdings stock rating downgraded to Neutral by BTIG on merger valuation

Published 22/08/2025, 11:12
Guild Holdings stock rating downgraded to Neutral by BTIG on merger valuation

Investing.com - BTIG downgraded Guild Holdings Co . (NYSE:GHLD) from Buy to Neutral on Friday, citing the stock’s current price already reflecting the merger valuation with private company Bayview. The stock, which has surged nearly 70% over the past six months and maintains a robust current ratio of 2.07, is currently trading above its InvestingPro Fair Value.

The research firm noted that Guild’s current share price aligns with the $20 per share valuation established in the merger agreement with Bayview, which was announced in June 2025.

BTIG analyst Eri Hagen explained that the transaction is expected to close by the end of 2025, with the firm’s decision to downgrade based on a price-to-book valuation methodology.

The analyst believes Bayview’s motivation for the acquisition stems from its objective to build scale and strengthen recapture capabilities, which BTIG considers a relevant theme currently supporting value for non-bank mortgage originator/servicers.

BTIG referenced its previous note from June 20 that detailed the acquisition, which provided additional information about the transaction between Guild Holdings and Bayview.

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 agreement, Guild stockholders will receive $20.00 in cash per share, a 56% premium compared to the closing stock price on May 23, 2025. The acquisition is structured as a friendly take-private transaction and is expected to close in the fourth quarter of 2025. Following the announcement, Jefferies downgraded Guild Holdings from Buy to Hold, raising its price target to $20.00. Similarly, Citizens JMP downgraded the company from Market Outperform to Market Perform. Additionally, Guild Holdings held its annual meeting on May 27, 2025, where stockholders approved amendments to the company’s Articles of Incorporation. These amendments include changes to limit the monetary liability of its officers, aligning with Delaware’s General Corporation Law. The Board of Directors also plans to authorize a special cash dividend of up to $0.25 per share before the acquisition closes.

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