Mary Ann McGarry, a director and major shareholder at Guild Holdings Co (NYSE:GHLD), recently purchased shares of the company, signaling a boost in her stake. The transaction, which took place on June 6, 2024, involved the acquisition of 4,998.2941 shares of Class A Common Stock at a price of $16.1206 per share, amounting to a total investment of approximately $80,575.
The buy comes as a notable move by McGarry, who has a significant role within the company. The shares were received as part of a broker-assisted dividend reinvestment program related to a special cash dividend, as indicated in the footnotes of the filing.
In addition to the purchased shares, McGarry also received 6,507.7941 dividend equivalent units (DEUs) on the same date. These DEUs are tied to outstanding restricted stock units (RSUs) and carry the same conditions as the underlying RSUs. It should be noted that the DEUs were acquired at no cost to McGarry.
Following these transactions, McGarry's ownership in Guild Holdings Co has increased, with her now holding a total of 379,503.29 shares in the company. This stake reflects her confidence in the mortgage banking and loan firm's future prospects.
Investors often keep a close eye on insider transactions as they can provide insights into how the company's leadership views the stock's value and future performance. McGarry's recent stock purchase and receipt of DEUs may be interpreted as a positive sign by those looking to understand insider sentiment towards Guild Holdings Co.
The details of these transactions were made public through a Form 4 filing with the Securities and Exchange Commission, which provides transparency on the trades made by the company's insiders.
In other recent news, Guild Holdings Company, a notable entity in the mortgage lending industry, reported significant advancements in its Q1 performance. The company's total originations rose to $3.9 billion, marking a 40% increase year-over-year. A key factor contributing to this growth was the acquisition of Academy Mortgage, which has already led to a 25% surge in origination volume. Despite unexpected expenses associated with the acquisition and other operational costs, Guild Holdings remains positive about its financial position and strategic initiatives. The company has also introduced programs to aid underserved populations in securing loans, reflecting its commitment to broader market engagement. Looking ahead, Guild Holdings anticipates a Q2 gain on sale of approximately $330 million. These recent developments underscore the company's strategic growth and commitment to delivering shareholder value.
InvestingPro Insights
The recent insider activity at Guild Holdings Co (NYSE:GHLD) by Mary Ann McGarry aligns with several insights from InvestingPro. Notably, analysts have a positive outlook on the company's net income, expecting growth this year. This aligns with McGarry's increased stake, potentially reflecting her anticipation of the company's financial improvement. Moreover, Guild Holdings Co's liquid assets exceed its short-term obligations, suggesting a stable financial position that may have influenced McGarry's decision to invest further.
From a valuation standpoint, GHLD is currently trading at a high earnings multiple, with a P/E ratio of 33.18, which is slightly down from the adjusted P/E ratio for the last twelve months as of Q1 2024 at 30.16. Additionally, the company has experienced a substantial revenue growth of 113.8% in Q1 2024 compared to the previous quarter, which may be a contributing factor to the company's perceived growth potential. Despite this, it's important to note that the company does not pay dividends to shareholders, which might influence the investment strategy for income-focused investors.
For those interested in further insights, InvestingPro offers additional tips on Guild Holdings Co, including detailed analysis on cash burn and earnings revisions by analysts. To explore these exclusive insights and more, visit InvestingPro. Don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 9 additional InvestingPro Tips available that could provide valuable information for investors considering Guild Holdings Co.
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