Adamas Trust (NASDAQ:ADAM) Hits New 12-Month High - Still a Buy?

Key Points

• Adamas Trust shares reached a new 52-week high, trading as high as $10.14 and recently changing hands near $10.24, above the prior close of $9.79.
• Analyst sentiment remains moderately bullish, with a consensus “Moderate Buy” rating and a $9.50 price target, although several firms have maintained or downgraded the stock to “Hold” or “Neutral.”
• The company exceeded quarterly earnings expectations, reporting $0.30 EPS versus $0.25 expected, and increased its quarterly dividend to $0.27, equivalent to a 10.5% annualized yield.

Adamas Trust, Inc. (NASDAQ:ADAM - Get Free Report) shares reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $10.14 and last traded at $10.2420, with a volume of 176029 shares traded. The stock had previously closed at $9.79.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the company. Weiss Ratings restated a "hold (c)" rating on shares of Adamas Trust in a research note on Tuesday, July 21st. Wall Street Zen cut Adamas Trust from a "buy" rating to a "hold" rating in a research note on Sunday. JonesTrading increased their price objective on Adamas Trust from $9.50 to $10.00 and gave the company a "buy" rating in a report on Thursday, July 30th. Zacks Research raised shares of Adamas Trust from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 30th. Finally, B. Riley Financial downgraded shares of Adamas Trust from a "buy" rating to a "neutral" rating and set a $9.50 target price on the stock. in a report on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $9.50.

Adamas Trust Price Performance

The company has a current ratio of 18.54, a quick ratio of 18.54 and a debt-to-equity ratio of 11.89. The company has a 50 day moving average price of $9.13 and a 200 day moving average price of $8.48. The company has a market capitalization of $921.00 million, a P/E ratio of 6.07 and a beta of 1.17.

Adamas Trust (NASDAQ:ADAM - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $0.30 earnings per share for the quarter, beating analysts' consensus estimates of $0.25 by $0.05. Adamas Trust had a return on equity of 14.72% and a net margin of 29.82%.The business had revenue of $47.92 million for the quarter, compared to analysts' expectations of $47.50 million. On average, equities analysts predict that Adamas Trust, Inc. will post 1.2 EPS for the current fiscal year.

Adamas Trust Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, July 28th. Stockholders of record on Tuesday, June 23rd were given a $0.27 dividend. The ex-dividend date of this dividend was Tuesday, June 23rd. This is a positive change from Adamas Trust's previous quarterly dividend of $0.23. This represents a $1.08 annualized dividend and a dividend yield of 10.5%. Adamas Trust's dividend payout ratio (DPR) is currently 64.29%.

Institutional Trading of Adamas Trust

Several hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new position in Adamas Trust in the 2nd quarter valued at $127,863,000. State Street Corp bought a new stake in shares of Adamas Trust in the fourth quarter valued at about $24,607,000. Invesco Ltd. bought a new stake in shares of Adamas Trust in the fourth quarter valued at about $23,172,000. Geode Capital Management LLC acquired a new position in shares of Adamas Trust in the fourth quarter valued at about $15,702,000. Finally, Charles Schwab Investment Management Inc. acquired a new position in shares of Adamas Trust in the fourth quarter valued at about $13,039,000. 54.89% of the stock is owned by institutional investors and hedge funds.

About Adamas Trust

New York Mortgage Trust, Inc acquires, invests in, finances, and manages mortgage-related single-family and multi-family residential assets in the United States. Its targeted investments include residential loans, second mortgages, and business purpose loans; structured multi-family property investments, such as preferred equity in, and mezzanine loans to owners of multi-family properties, as well as joint venture equity investments in multi-family properties; non-agency residential mortgage-backed securities (RMBS); agency RMBS; commercial mortgage-backed securities (CMBS); and other mortgage, residential housing, and credit-related assets.

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