Chimera Expands Mortgage Reach With HomeXpress Acquisition

Written by Emily J. Thompson, Senior Investment Analyst

PFSI-0.41%

MBB-0.09%

RKT+1.32%

Source: Benzinga

Updated: Jun 12 2025

0mins

Source: Benzinga

Chimera Investment Corporation Acquisition: Chimera Investment Corp. announced its acquisition of HomeXpress Mortgage Corp. for $120 million in cash and shares, aiming to enhance its mortgage loan origination capabilities and diversify revenue streams. The deal is expected to close in Q4 2025 and will be earnings-accretive starting in 2026.
HomeXpress Operations Post-Acquisition: HomeXpress, which has been profitable since its inception in 2016 and generated $47 million in pre-tax income in 2024, will continue as a subsidiary under CEO Kyle Walker after the acquisition, with plans to leverage existing net operating losses to offset costs.

PFSI

$151.67+Infinity%1D

Analyst Views on PFSI

Wall Street analysts forecast PFSI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for PFSI is 150.29 USD with a low forecast of 143.00 USD and a high forecast of 160.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

7 Analyst Rating

5 Buy

2 Hold

0 Sell

Moderate Buy

Current: 152.300

Low

143.00

Averages

150.29

High

160.00

Current: 152.300

Low

143.00

Averages

150.29

High

160.00

Jefferies

Buy

maintain

2026-01-09

Reason

Jefferies

Price Target

AI Analysis

2026-01-09

maintain

Buy

Reason

Jefferies notes 30-year mortgage rates fell 22 basis points points today to 5.99% following President Trump's post about a $200B GSE MBS purchase program, adding that the firm estimates that a 22 point decline in the 30-year fixed mortgage rate has historically been associated with roughly a 15%-25% increase in refinance activity. However, based on the firm's estimates of the incremental earnings impact from today's rate move alone, the current stock price reactions for mortgage stocks such as Rocket Companies (RKT), UWM Holdings (UWMC) and PennyMac Financial (PFSI) "appear to price in either a larger or more persistent policy shift than currently specified, or some probability of a broader regime of housing support over time," the analyst tells investors. Jefferies has Buy ratings on Rocket and PennyMac and a Hold rating on United Wholesale.

Barclays

Terry Ma

Overweight

maintain

$139 -> $158

2026-01-06

Reason

Barclays

Terry Ma

Price Target

$139 -> $158

2026-01-06

maintain

Overweight

Reason

Barclays analyst Terry Ma raised the firm's price target on PennyMac Financial to $158 from $139 and keeps an Overweight rating on the shares. The firm sees additional upside in select consumer finance name in 2026. A "benign' credit environment sets the stage for loan growth, the analyst tells investors in a research note. Barclays also forecasts a better mortgage origination market in 2026. The firm adjusted price targets as part of its 2026 outlook.

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BTIG

Eric Hagen

Buy

maintain

$135 -> $150

2025-12-29

Reason

BTIG

Eric Hagen

Price Target

$135 -> $150

2025-12-29

maintain

Buy

Reason

BTIG analyst Eric Hagen raised the firm's price target on PennyMac Financial to $150 from $135 and keeps a Buy rating on the shares. Most mortgage lenders and servicers should expect earnings upside from "low(er)" interest rate volatility, argues the analyst, who sees improved visibility for GAAP book value to get up near $100 per share by the end of 2026 if low interest rate volatility helps contribute to more moderate and predictable hedging costs.

UBS

Doug Harter

Neutral

maintain

$135 -> $145

2025-10-24

Reason

UBS

Doug Harter

Price Target

$135 -> $145

2025-10-24

maintain

Neutral

Reason

UBS analyst Doug Harter raised the firm's price target on PennyMac Financial to $145 from $135 and keeps a Neutral rating on the shares.

About PFSI

PennyMac Financial Services, Inc. is a specialty financial services company, which is focused on the production and servicing of the United States mortgage loans and the management of investments related to the United States mortgage market. The Company operates through two segments: production and servicing. The production segment performs loan origination, acquisition and sale activities for its account, as well as for PennyMac Mortgage Investment Trust (PMT). Its loan production segment sources new prime credit quality residential conventional and government-insured or guaranteed mortgage loans through three channels: correspondent production, broker direct lending and consumer direct lending. The servicing segment performs loan servicing for both newly originated loans it is holding for sale and loans its services for others, including for PMT. Its loan servicing segment performs loan administration, collection, and default management activities.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.