AG Mortgage Investment Trust (NYSE:MITT – Get Free Report) released its earnings results on Wednesday. The real estate investment trust reported $0.21 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.27 by ($0.06), FiscalAI reports. AG Mortgage Investment Trust had a return on equity of 15.59% and a net margin of 8.55%.
Here are the key takeaways from AG Mortgage Investment Trust’s conference call:
- Book value fell 7.3% to $9.27 per share as September’s rate and spread volatility drove mark-to-market losses; including the $0.24 dividend, economic return was negative 4.9%. EAD was $0.21 per share, below the dividend.
- MITT sponsored three home-equity securitizations totaling about $1.25 billion and increased economic leverage only modestly, to roughly 2.0x. Management is prioritizing home equity, citing its relative appeal to borrowers who want to retain low-rate first mortgages.
- Management reported progress resolving legacy commercial loans, with a hospitality buyer deposit secured and a buyer selected for the retail exposure. It expects redeploying proceeds into residential investments to add approximately $0.15–$0.20 of annual EAD in 2027, depending on timing.
- Arc Home originated about $1 billion, up 19% year over year, but contributed roughly break-even EAD as September volatility offset earlier profitability. Management said the outlook remains uncertain, while home-equity originations at Arc are beginning to ramp.
- The proposed Cherry Hill merger advanced, with the joint proxy statement and prospectus filed and shareholder meetings expected in December. MITT incurred about $2 million in transaction expenses during the quarter.
AG Mortgage Investment Trust Stock Down 2.0%
Shares of MITT traded down $0.12 during mid-day trading on Wednesday, hitting $5.55. 310,697 shares of the company’s stock were exchanged, compared to its average volume of 267,638. The stock’s 50-day simple moving average is $6.02 and its 200-day simple moving average is $7.34. AG Mortgage Investment Trust has a 52 week low of $5.20 and a 52 week high of $9.27. The firm has a market cap of $176.65 million, a price-to-earnings ratio of 7.51 and a beta of 1.78.
AG Mortgage Investment Trust Dividend Announcement
The company also recently disclosed a quarterly dividend, which was paid on Friday, October 30th. Shareholders of record on Wednesday, September 30th were given a dividend of $0.24 per share. The ex-dividend date was Wednesday, September 30th. This represents a $0.96 annualized dividend and a yield of 17.3%. AG Mortgage Investment Trust’s dividend payout ratio (DPR) is presently 129.73%.
Wall Street Analyst Weigh In
MITT has been the subject of a number of recent research reports. Citizens Jmp cut their price target on AG Mortgage Investment Trust from $9.25 to $8.50 and set a “market outperform” rating for the company in a research note on Thursday, October 15th. JonesTrading reduced their price objective on AG Mortgage Investment Trust from $9.00 to $8.00 and set a “buy” rating for the company in a research report on Monday, August 10th. Piper Sandler reduced their price target on shares of AG Mortgage Investment Trust from $9.00 to $8.00 and set an “overweight” rating for the company in a report on Friday, October 9th. Weiss Ratings lowered shares of AG Mortgage Investment Trust from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Thursday, October 8th. Finally, Citigroup reaffirmed a “market outperform” rating on shares of AG Mortgage Investment Trust in a research report on Thursday, October 15th. Five investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $8.54.
Read Our Latest Report on AG Mortgage Investment Trust
About AG Mortgage Investment Trust
AG Mortgage Investment Trust, Inc is a real estate investment trust that invests primarily in residential mortgage-related assets. The company seeks to generate income through a portfolio that may include agency and non-agency residential mortgage-backed securities, residential mortgage loans, mortgage servicing rights and other housing-related investments.
AG Mortgage Investment Trust’s investment activities are focused mainly on the U.S. residential mortgage market. Its portfolio may include loans and securities backed by a range of residential properties and borrowers, providing exposure to different segments of the housing and mortgage finance sectors.
Founded in 2011, the company is externally managed by AG REIT Management, LLC, an affiliate of Angelo Gordon, an alternative investment firm.
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