AG Mortgage Investment Trust (NYSE:MITT) Announces Earnings Results

AG Mortgage Investment Trust (NYSE:MITT) released its quarterly earnings data on Monday. The real estate investment trust reported $0.24 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.27 by ($0.03), FiscalAI reports. The company had revenue of $23.39 million for the quarter, compared to analyst estimates of $26.13 million. AG Mortgage Investment Trust had a return on equity of 15.02% and a net margin of 6.71%.

Here are the key takeaways from AG Mortgage Investment Trust’s conference call:

• Strong second-quarter performance: MITT generated EAD of $0.24 per share, fully covering its $0.24 dividend, while book value rose to $10.00 per share and economic return reached 2.7%.
• Cherry Hill acquisition expected to transform the platform: The deal is projected to increase market capitalization by approximately 36%, create a roughly $750 million equity base, generate $7 million–$9 million in annual cost synergies, and add complementary MSR and agency assets; closing is expected in the fourth quarter.
• Growth in residential credit and home equity: MITT completed more than $750 million of home equity securitizations in the quarter and expects over $1.25 billion across three transactions in Q3, with economic leverage remaining conservative at 1.8x and additional financing capacity available.
• Legacy commercial portfolio resolutions could unlock earnings: Management expects the retail loan sale to close by year-end and additional hospitality resolutions by the end of Q3, potentially releasing about $30 million for reinvestment and adding approximately $0.20 per share in annual EAD over time.

AG Mortgage Investment Trust Trading Down 11.1%

MITT stock opened at $6.30 on Tuesday. The company has a market cap of $200.34 million, a P/E ratio of 15.75 and a beta of 1.65. AG Mortgage Investment Trust has a twelve month low of $5.93 and a twelve month high of $9.27. The company has a quick ratio of 10.33, a current ratio of 10.33 and a debt-to-equity ratio of 23.76. The business has a fifty day moving average of $7.59 and a 200-day moving average of $7.84.

AG Mortgage Investment Trust Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Tuesday, June 30th were paid a $0.24 dividend. This represents a $0.96 annualized dividend and a dividend yield of 15.2%. The ex-dividend date of this dividend was Tuesday, June 30th. AG Mortgage Investment Trust’s dividend payout ratio (DPR) is 240.00%.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on MITT shares. Weiss Ratings reaffirmed a “hold (c)” rating on shares of AG Mortgage Investment Trust in a report on Wednesday, July 15th. BTIG Research raised shares of AG Mortgage Investment Trust from a “neutral” rating to a “buy” rating and set a $9.00 price target for the company in a report on Wednesday, June 17th. Piper Sandler decreased their price objective on shares of AG Mortgage Investment Trust from $10.00 to $9.50 and set an “overweight” rating on the stock in a research note on Thursday, July 2nd. JonesTrading dropped their price objective on shares of AG Mortgage Investment Trust from $9.00 to $8.00 and set a “buy” rating for the company in a report on Monday. Finally, Keefe, Bruyette & Woods cut their target price on shares of AG Mortgage Investment Trust from $9.00 to $8.50 and set a “market perform” rating for the company in a research note on Friday, May 1st. Six analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $8.93.

Institutional Trading of AG Mortgage Investment Trust

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Kemnay Advisory Services Inc. bought a new stake in AG Mortgage Investment Trust during the 4th quarter worth about $40,000. Strs Ohio bought a new position in shares of AG Mortgage Investment Trust in the 1st quarter valued at about $39,000. BNP Paribas Financial Markets grew its position in shares of AG Mortgage Investment Trust by 103.7% during the 3rd quarter. BNP Paribas Financial Markets now owns 5,413 shares of the real estate investment trust’s stock worth $39,000 after buying an additional 2,756 shares during the period. Russell Investments Group Ltd. grew its position in shares of AG Mortgage Investment Trust by 103.8% during the 3rd quarter. Russell Investments Group Ltd. now owns 7,095 shares of the real estate investment trust’s stock worth $51,000 after buying an additional 3,614 shares during the period. Finally, Public Employees Retirement System of Ohio grew its position in shares of AG Mortgage Investment Trust by 258.4% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 8,960 shares of the real estate investment trust’s stock worth $65,000 after buying an additional 6,460 shares during the period. 27.32% of the stock is currently owned by institutional investors and hedge funds.

AG Mortgage Investment Trust Company Profile

AG Mortgage Investment Trust, Inc is a publicly traded, closed-end management investment company that primarily focuses on investing in U.S. residential mortgage assets. The firm seeks to generate current income for its shareholders by acquiring a diversified portfolio of mortgage loans and mortgage-backed securities. As an externally managed mortgage real estate investment trust (REIT), AG Mortgage Investment Trust aims to deliver attractive risk-adjusted returns through active portfolio management and interest rate hedging strategies.

The company’s investment portfolio is concentrated in adjustable-rate residential mortgage loans, including so-called “jumbo” prime ARMs, as well as Agency and non-Agency residential mortgage-backed securities (RMBS).