AG Mortgage Investment Trust (NYSE:MITT) Releases Earnings Results, Misses Estimates By $0.03 EPS

AG Mortgage Investment Trust (NYSE:MITT) announced its earnings results on Monday. The real estate investment trust reported $0.24 earnings per share for the quarter, missing the consensus estimate of $0.27 by ($0.03), FiscalAI reports. AG Mortgage Investment Trust had a return on equity of 15.48% and a net margin of 8.55%.The business had revenue of $23.39 million for the quarter, compared to analyst estimates of $26.13 million.

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 1.0%

AG Mortgage Investment Trust stock traded down $0.07 during midday trading on Wednesday, reaching $6.66. The stock had a trading volume of 33,853 shares, compared to its average volume of 232,909. The stock’s 50-day simple moving average is $7.57 and its 200 day simple moving average is $7.82. AG Mortgage Investment Trust has a twelve month low of $5.93 and a twelve month high of $9.27. The company has a debt-to-equity ratio of 23.76, a quick ratio of 10.33 and a current ratio of 10.33. The stock has a market capitalization of $211.79 million, a PE ratio of 9.01 and a beta of 1.65.

AG Mortgage Investment Trust Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Tuesday, June 30th were issued a $0.24 dividend. The ex-dividend date was Tuesday, June 30th. This represents a $0.96 dividend on an annualized basis and a yield of 14.4%. AG Mortgage Investment Trust’s dividend payout ratio (DPR) is presently 240.00%.

Hedge Funds Weigh In On AG Mortgage Investment Trust

Several hedge funds and other institutional investors have recently modified their holdings of the company. MML Investors Services LLC purchased a new position in shares of AG Mortgage Investment Trust in the 4th quarter valued at $123,000. Cerity Partners LLC purchased a new position in AG Mortgage Investment Trust in the fourth quarter valued at about $90,000. HighTower Advisors LLC purchased a new position in AG Mortgage Investment Trust in the fourth quarter valued at about $122,000. Moors & Cabot Inc. acquired a new position in shares of AG Mortgage Investment Trust during the third quarter worth about $120,000. Finally, Alliancebernstein L.P. boosted its position in shares of AG Mortgage Investment Trust by 23.1% in the third quarter. Alliancebernstein L.P. now owns 20,270 shares of the real estate investment trust’s stock worth $147,000 after buying an additional 3,800 shares during the period. 27.32% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

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

About AG Mortgage Investment Trust

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).