AG Mortgage Investment Trust (NYSE:MITT) Releases Earnings Results, Misses Expectations By $0.06 EPS

AG Mortgage Investment Trust (NYSE:MITT) posted its earnings results on Wednesday. The real estate investment trust reported $0.21 earnings per share for the quarter, missing analysts’ consensus estimates of $0.27 by ($0.06), FiscalAI reports. The firm had revenue of $3.00 million for the quarter, compared to analyst estimates of $16.30 million. 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 Price Performance

MITT traded down $0.57 on Thursday, hitting $4.95. 380,359 shares of the stock were exchanged, compared to its average volume of 268,872. AG Mortgage Investment Trust has a 12 month low of $4.94 and a 12 month high of $9.27. The business has a 50-day moving average of $6.00 and a two-hundred day moving average of $7.33. The firm has a market capitalization of $157.25 million, a price-to-earnings ratio of 6.68 and a beta of 1.78.

AG Mortgage Investment Trust Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, October 30th. Investors of record on Wednesday, September 30th were paid a $0.24 dividend. This represents a $0.96 dividend on an annualized basis and a yield of 19.4%. The ex-dividend date of this dividend was Wednesday, September 30th. AG Mortgage Investment Trust’s payout ratio is 129.73%.

Wall Street Analyst Weigh In

MITT has been the topic of a number of recent research reports. 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. Piper Sandler dropped their price objective on shares of AG Mortgage Investment Trust from $9.00 to $8.00 and set an “overweight” rating for the company in a research note on Friday, October 9th. JonesTrading cut their price objective on shares of AG Mortgage Investment Trust from $8.00 to $7.00 and set a “buy” rating for the company in a report on Wednesday. Citizens Jmp decreased their target price on shares of AG Mortgage Investment Trust from $9.25 to $8.50 and set a “market outperform” rating on the stock in a research report on Thursday, October 15th. Finally, Citigroup reaffirmed a “market outperform” rating on shares of AG Mortgage Investment Trust in a report on Thursday, October 15th. Five investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, AG Mortgage Investment Trust has a consensus rating of “Moderate Buy” and a consensus target price of $8.38.

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.