Adamas Trust (NASDAQ:ADAM) Trading Up 14% After Better-Than-Expected Earnings

Key Points

• Shares jumped ~14% to about $8.84 after Adamas Trust reported quarterly EPS of $0.29 versus $0.24 expected and revenue of $48.41 million versus $40.0 million expected.
• The company paid a quarterly dividend of $0.23 (annualized $0.92), implying a 10.3% dividend yield but carrying a high payout ratio of 83.64%.
• Analyst coverage is mixed with an average rating of "Hold" and an average target of $9.25, though JonesTrading raised its target to $9.50 (buy); the stock trades at a P/E of 8.12 and a market cap of about $799 million.

Adamas Trust, Inc. (NASDAQ:ADAM - Get Free Report) shares were up 14% during mid-day trading on Thursday following a better than expected earnings announcement. The company traded as high as $8.76 and last traded at $8.8360. Approximately 399,871 shares traded hands during mid-day trading, a decline of 41% from the average daily volume of 675,080 shares. The stock had previously closed at $7.75.

The company reported $0.29 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.24 by $0.05. Adamas Trust had a return on equity of 13.52% and a net margin of 24.76%.The business had revenue of $48.41 million during the quarter, compared to analysts' expectations of $40.00 million.

Adamas Trust Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, April 28th. Shareholders of record on Monday, March 30th were given a $0.23 dividend. This represents a $0.92 dividend on an annualized basis and a dividend yield of 10.3%. The ex-dividend date was Monday, March 30th. Adamas Trust's payout ratio is 83.64%.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on ADAM shares. JonesTrading upped their price target on Adamas Trust from $7.50 to $9.50 and gave the company a "buy" rating in a research report on Friday, February 20th. Weiss Ratings upgraded Adamas Trust from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, April 24th. Finally, Keefe, Bruyette & Woods upped their price target on Adamas Trust from $8.25 to $9.00 and gave the company a "market perform" rating in a research report on Friday, February 20th. One investment analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $9.25.

Institutional Investors Weigh In On Adamas Trust

Several institutional investors and hedge funds have recently made changes to their positions in ADAM. Nisa Investment Advisors LLC bought a new stake in shares of Adamas Trust during the 4th quarter valued at about $65,000. Yousif Capital Management LLC bought a new stake in shares of Adamas Trust during the 4th quarter valued at about $166,000. State of Alaska Department of Revenue bought a new stake in shares of Adamas Trust during the 4th quarter valued at about $307,000. CWM LLC bought a new stake in shares of Adamas Trust during the 4th quarter valued at about $73,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank bought a new stake in shares of Adamas Trust during the 4th quarter valued at about $127,000. Institutional investors own 54.89% of the company's stock.

Adamas Trust Trading Up 14.8%

The company has a debt-to-equity ratio of 12.03, a quick ratio of 14.17 and a current ratio of 14.16. The company's 50-day moving average price is $7.81. The firm has a market cap of $799.31 million, a P/E ratio of 8.12 and a beta of 1.08.

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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