SAN DIEGO – Terry Lynn Schmidt, the CEO of Guild Holdings Co (NYSE:GHLD), a mortgage banking firm, has recently made a significant investment in the company's stock. According to regulatory filings, Schmidt purchased shares valued at approximately $58,512 on June 6, 2024.
The transaction involved the acquisition of 3,629.642 shares of Class A Common Stock at a price of $16.1206 per share. This purchase was part of a broker-assisted dividend reinvestment program related to a special cash dividend, as noted in the filing footnotes.
In addition to the shares bought, Schmidt also received 9,888.32 dividend equivalent units (DEUs) on outstanding restricted stock units (RSUs). These DEUs are subject to the same vesting conditions as the underlying RSUs and were awarded at no cost to the executive.
Following these transactions, Schmidt's total direct ownership in Guild Holdings Co has increased to 2,808,494.64 shares of Class A Common Stock. The investment demonstrates the CEO's commitment to the company and aligns their interests with those of the shareholders.
Investors often view such purchases by company executives as a sign of confidence in the firm's future prospects. Schmidt's acquisition and the additional DEUs increase their stake in the company, potentially signaling optimism about Guild Holdings' financial performance and growth trajectory.
Guild Holdings Co, headquartered in San Diego, California, specializes in mortgage banking and loan services. The company has been listed under the trading symbol GHLD and operates within the mortgage finance sector.
In other recent news, Guild Holdings Company has reported a strong first quarter, with total originations reaching $3.9 billion, a 40% increase year-over-year. This growth was further amplified by the acquisition of Academy Mortgage, leading to a 25% rise in origination volume. Despite higher operational costs due to the acquisition, Guild Holdings remains positive about its financial health and strategic direction.
The company has also introduced programs aimed at helping underserved populations secure loans. Adjusted net income and return on equity remained positive, driven by a balanced business model. Guild Holdings anticipates a second quarter gain on sale of approximately $330 million.
In terms of future expectations, Guild is confident in its long-term strategy and its ability to generate shareholder value. The company plans to maintain its focus on purchase market originations and retaining servicing rights for steady cash flow. These recent developments suggest Guild Holdings is well-positioned for continued growth and financial stability.
InvestingPro Insights
Following the CEO's recent investment in Guild Holdings Co (NYSE:GHLD), the company's financial metrics and analyst insights offer additional context for investors. With a Market Cap of $889.49 million and a trailing twelve-month Revenue of $853.73 million as of Q1 2024, the company shows a modest revenue growth of 2.33%. Despite the growth, the PEG Ratio stands at -0.49, indicating potential concerns over future earnings growth relative to the P/E ratio.
InvestingPro Tips suggest that while Guild Holdings is expected to see net income growth this year, analysts have tempered their enthusiasm with three of them revising earnings estimates downwards for the upcoming period. Moreover, the company is trading at a high earnings multiple with a P/E ratio of 33.18, which is adjusted to 30.16 for the last twelve months as of Q1 2024. This could suggest that the stock might be overvalued relative to its earnings.
On a positive note, GHLD has demonstrated a high return over the last year with the 1 Year Price Total Return at an impressive 50.58%. Additionally, the company's liquid assets exceed its short-term obligations, indicating a strong liquidity position. However, it's worth noting that Guild Holdings does not pay a dividend to shareholders, which might be a consideration for income-focused investors.
For those looking to delve deeper into GHLD's performance and future outlook, InvestingPro offers additional insights. There are more tips available on InvestingPro that can provide a comprehensive analysis of the company's financial health and potential investment opportunities. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and unlock the full suite of analytical tools and expert insights.
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