Stock Analysis Firm Initiates Coverage on HomeStreet with a Sell Rating

HomeStreet (NASDAQ:HMST) has recently become the subject of analysis by StockNews.com, which has just started covering the financial services provider's shares. In their initial report, the analysts assigned a 'sell' rating to the company, indicating their bearish stance on the stock's future performance.

Diverse Opinions from Research Analysts

HomeStreet has been under the radar of various research firms, resulting in mixed opinions. Keefe, Bruyette & Woods raised their price target from $11.00 to $15.50 and currently classify HomeStreet as 'market perform'. Wedbush also increased their price target to $16.00 from $15.00, maintaining a 'neutral' rating. Conversely, Piper Sandler slashed their price target from $8.00 to $5.00 but kept a 'neutral' stance. Collectively, the stock holds a 'Hold' consensus rating with an average target price of $12.17, according to MarketBeat data.

HomeStreet's Financial Performance

As for its financials, HomeStreet reported disappointing quarterly earnings, with a loss of $0.12 per share, which fell short of the predicted $0.03 EPS. The firm generated revenue of $45.95 million, also missing the expected $49.73 million. Despite a negative net margin of 6.23%, the company's return on equity remained positive at 1.55%. Analysts forecast that HomeStreet will achieve an EPS of $0.24 for the current fiscal year.

Institutional Investors' Moves

Institutional investors have shown active engagement with HomeStreet's stock, with significant changes in their holdings. For instance, PNC Financial Services Group Inc. amplified its stake by 167.2%, and CWM LLC's position grew by a staggering 2222.2%. Several new investors and increased positions highlight the dynamic nature of HomeStreet's investor base, which is 76.45% owned by institutional investors.

About HomeStreet

HomeStreet, Inc functions as a holding company for HomeStreet Bank, which offers a variety of banking services including personal and business banking solutions, savings accounts, and cash management services. It mainly serves clients across the Western United States, focusing on customer-centric financial offerings.

HomeStreet, stock, analysis