Shares of Angel Oak Mortgage REIT Inc. (NYSE:AOMR) have received a consensus target price of $11.45 from various brokerage firms, indicating a “Moderate Buy” recommendation from seven analysts covering the stock. According to MarketBeat.com, three firms have rated the stock as a hold, while four recommend buying.
Recent analyses from multiple investment firms highlight a range of perspectives on the company’s performance. For instance, Zacks Research upgraded its rating from “strong sell” to “hold” on November 4, 2023. Conversely, Wall Street Zen revised its stance from hold to sell on November 15, 2023, reflecting a more cautious outlook. Meanwhile, UBS Group reduced its target price from $10.00 to $9.75 while assigning a “neutral” rating on November 18, 2023.
In trading on Thursday, shares of Angel Oak Mortgage REIT opened at $8.74, demonstrating a slight increase of 0.3%. The company exhibits a current ratio of 6.83, quick ratio of 6.83, and a debt-to-equity ratio of 6.87. Over the past year, the stock has fluctuated between a low of $7.36 and a high of $10.88. The firm’s fifty-day simple moving average is $8.91, while the 200-day average stands at $9.28. With a market capitalization of $217.71 million, the company has a price-to-earnings (PE) ratio of 12.31 and a beta of 1.36.
In its most recent quarterly earnings report released on November 6, 2023, Angel Oak Mortgage REIT reported earnings per share (EPS) of $0.02, which fell short of analysts’ consensus estimate of $0.28 by $0.26. The company achieved a net margin of 12.93% and a return on equity of 6.42%. Revenue for the quarter was reported at $28.02 million, significantly above the estimated $10.68 million. Analysts expect that Angel Oak Mortgage REIT will post EPS of $0.03 for the current fiscal year.
In addition to its financial performance, Angel Oak Mortgage REIT has also announced a quarterly dividend of $0.32, which was issued on November 26, 2023. Shareholders on record as of November 18, 2023 received this dividend, leading to an annualized dividend of $1.28 and a yield of 14.6%. The company’s current dividend payout ratio stands at an elevated 180.28%.
Angel Oak Mortgage REIT specializes in a diversified portfolio of residential mortgage assets, primarily investing in non-agency residential mortgage-backed securities (RMBS), residential whole loans, and credit risk transfer securities. By focusing on these structured credit instruments, the firm aims to generate attractive risk-adjusted returns through a blend of net interest income and potential capital appreciation. The company employs leverage through repurchase financing facilities and actively manages its exposure to duration and credit risks to adapt to evolving market conditions.
As analysts continue to monitor the performance of Angel Oak Mortgage REIT, investors remain focused on the implications of these ratings and the company’s ongoing financial health.
