Latest news with #MikhailGoberman
Business Insider
2 hours ago
- Business
- Business Insider
Guild Mortgage downgraded to Market Perform from Outperform at Citizens JMP
Citizens JMP analyst Mikhail Goberman downgraded Guild Mortgage (GHLD) to Market Perform from Outperform without a price target after the company signed an agreement under which a fund managed by Bayview Asset Management will acquire all of the outstanding shares of Guild for $20.00 in cash. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Reuters
11 hours ago
- Business
- Reuters
Bayview to buy remaining stake in mortgage lender Guild for $1.3 billion
June 18 (Reuters) - Investment firm Bayview Asset Management will buy all shares of Guild Holdings (GHLD.N), opens new tab that it does not already own for $1.3 billion in cash, taking the mortgage lender private nearly five years after it was listed. Under the deal announced on Wednesday, Guild shareholders will receive $20 for each share held. That represents a 56% premium to the stock's closing price on May 23, the last trading day before Bayview disclosed its interest in acquiring the California-based company. Guild shares surged 26% to $19.77. Bayview currently owns 7.3% of the company, according to LSEG data. The mortgage industry is experiencing a wave of consolidation as companies seek greater scale to combat profitability pressures from still-high interest rates and a challenging loan-growth environment. "We see the M&A trend continuing as we move further into the year and more and more smaller operators choosing to sell," said Mikhail Goberman, equity research analyst at Citizens. The deal may inspire industry peers to replicate Guild's "acquire and build in order to eventually sell strategy", Goberman said. In another large-scale consolidation among top U.S. mortgage servicers earlier this year, Rocket Companies (RKT.N), opens new tab agreed to buy Mr. Cooper Group in a $9.4 billion all-stock deal. Mortgage servicers such as Guild are also expected to benefit when interest rates eventually decline and refinancing activity picks up. As a private company, Guild will work in partnership with mortgage servicer Lakeview Loan Servicing, a Bayview affiliate. The partnership will position Guild for additional mortgage origination opportunities, it said. Guild's management team will remain unchanged. Its board plans to pay a special cash dividend of up to $0.25 per share prior to the deal's closing — expected in the fourth quarter of 2025. Morgan Stanley was the financial adviser to Guild, while Goldman Sachs advised Bayview on the deal.
