Angel Oak Mortgage REIT (NYSE:AOMR) Stock Gets Downgrade from Zacks Research

Key Points

• Zacks Research downgraded Angel Oak Mortgage REIT from “hold” to “strong sell.” Despite the move, analysts’ overall consensus remains “hold,” with an average price target of $9.25.
• The stock opened at $6.20, near its 52-week low of $5.94. The company also missed quarterly estimates, reporting EPS of $0.28 versus the $0.32 consensus and revenue of negative $10.63 million.
• Company directors bought shares recently: insiders acquired 52,926 shares worth about $392,000 over 90 days. Institutional investors own 80.15% of the stock.

Angel Oak Mortgage REIT (NYSE:AOMR - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Monday, Zacks reports.

AOMR has been the topic of several other reports. Wall Street Zen raised Angel Oak Mortgage REIT from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. B. Riley Financial reduced their target price on Angel Oak Mortgage REIT from $13.00 to $10.00 and set a "buy" rating for the company in a report on Wednesday, November 4th. JonesTrading decreased their price target on Angel Oak Mortgage REIT from $10.50 to $9.50 and set a "buy" rating for the company in a research note on Tuesday, November 3rd. BTIG Research lowered their price target on Angel Oak Mortgage REIT from $10.00 to $9.00 and set a "buy" rating on the stock in a report on Tuesday, October 6th. Finally, Weiss Ratings cut Angel Oak Mortgage REIT from a "sell (d+)" rating to a "sell (d)" rating in a research report on Tuesday, November 3rd. Four investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $9.25.

Angel Oak Mortgage REIT Stock Down 0.6%

Shares of Angel Oak Mortgage REIT stock opened at $6.20 on Monday. The company has a debt-to-equity ratio of 10.53, a quick ratio of 10.21 and a current ratio of 10.21. The stock has a market capitalization of $145.17 million, a PE ratio of -14.43 and a beta of 1.30. Angel Oak Mortgage REIT has a 52-week low of $5.94 and a 52-week high of $9.30. The company has a 50-day simple moving average of $7.40 and a two-hundred day simple moving average of $8.36.

Angel Oak Mortgage REIT (NYSE:AOMR - Get Free Report) last issued its earnings results on Tuesday, November 3rd. The company reported $0.28 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.32 by ($0.04). The firm had revenue of ($10.63) million during the quarter, compared to the consensus estimate of $11.39 million. Angel Oak Mortgage REIT had a positive return on equity of 10.57% and a negative net margin of 5.74%. On average, analysts anticipate that Angel Oak Mortgage REIT will post 1.14 EPS for the current fiscal year.

Insider Activity at Angel Oak Mortgage REIT

In other news, Director Michael Fierman purchased 38,726 shares of the company's stock in a transaction dated Friday, September 25th. The shares were purchased at an average cost of $7.50 per share, for a total transaction of $290,445.00. Following the purchase, the director directly owned 105,247 shares in the company, valued at approximately $789,352.50. This represents a 58.22% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director W D. Minami purchased 6,800 shares of the company's stock in a transaction dated Thursday, September 10th. The stock was purchased at an average price of $8.10 per share, for a total transaction of $55,080.00. Following the completion of the purchase, the director owned 87,118 shares in the company, valued at approximately $705,655.80. The trade was a 8.47% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders acquired 52,926 shares of company stock worth $391,997. Company insiders own 2.90% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Riverbridge Partners LLC increased its position in shares of Angel Oak Mortgage REIT by 9.4% during the 3rd quarter. Riverbridge Partners LLC now owns 217,721 shares of the company's stock valued at $1,589,000 after purchasing an additional 18,643 shares during the last quarter. Public Employees Retirement System of Ohio bought a new stake in Angel Oak Mortgage REIT during the second quarter valued at approximately $58,000. Odyssean LLC grew its position in Angel Oak Mortgage REIT by 317.6% during the second quarter. Odyssean LLC now owns 41,791 shares of the company's stock valued at $379,000 after buying an additional 31,783 shares during the period. North Ground Capital bought a new stake in Angel Oak Mortgage REIT during the second quarter valued at approximately $1,492,471. Finally, BlackRock Inc. purchased a new stake in Angel Oak Mortgage REIT during the second quarter valued at approximately $12,210,000. Institutional investors own 80.15% of the company's stock.

Angel Oak Mortgage REIT Company Profile

Angel Oak Mortgage REIT, Inc. is a real estate investment trust focused on investing in residential mortgage assets. The company primarily targets non-qualified mortgage loans, or non-QM loans, which are residential mortgages made to creditworthy borrowers whose financial profiles may not fit traditional agency underwriting standards. Its investment portfolio may also include residential mortgage-backed securities and other mortgage-related assets. Angel Oak Mortgage REIT seeks to generate income through interest payments and other returns from these investments, with an emphasis on loans secured by residential properties in the United States.

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