HomeStreet (HMST) Surges 26.2%: Is This an Indication of Further Gains?

Group 1 - HomeStreet (HMST) shares increased by 26.2% to close at $11.74, following a notable trading volume, contrasting with a 7.4% loss over the past four weeks [1] - HomeStreet and Mechanics Bank announced an all-stock business combination, with Mechanics Bank shareholders receiving HomeStreet common stock [2] - The merger will enhance Mechanics Bank's presence on the West Coast, resulting in a combined entity with 168 branches and $23 billion in assets, expected to close in Q3 2025 [3] Group 2 - HomeStreet is projected to report a quarterly loss of $0.07 per share, reflecting a year-over-year increase of 75.9%, with revenues anticipated at $45.59 million, up 9.6% from the previous year [3] - The consensus EPS estimate for HomeStreet has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without earnings estimate revisions [5] - HomeStreet holds a Zacks Rank of 3 (Hold), while Berkshire Hills Bancorp (BHLB), another company in the same industry, has a Zacks Rank of 2 (Buy) [5][6]