Claros Mortgage Trust (NYSE:CMTG) Cut to Strong Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded Claros Mortgage Trust from “hold” to “strong sell.” MarketBeat reports a consensus “strong sell” rating, with a $2.50 average price target based on one Hold and three Sell ratings.
• Claros Mortgage Trust’s shares opened at $1.76, near their 52-week low of $1.73, while the stock remains below its 50-day and 200-day moving averages.
• The company reported a quarterly loss of $0.63 per share, missing the $0.25 loss estimate, and revenue of $30.0 million versus expectations of $33.55 million. Analysts forecast a full-year loss of $1.76 per share.

Claros Mortgage Trust (NYSE:CMTG - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "strong sell" rating in a research report issued on Saturday.

CMTG has been the subject of a number of other research reports. Keefe, Bruyette & Woods reduced their target price on Claros Mortgage Trust from $2.50 to $2.25 and set an "underperform" rating for the company in a report on Wednesday, May 13th. Weiss Ratings upgraded Claros Mortgage Trust from a "sell (e+)" rating to a "sell (d-)" rating in a report on Monday, July 20th. Finally, UBS Group assumed coverage on Claros Mortgage Trust in a research report on Thursday, July 16th. They set a "neutral" rating and a $2.75 price target on the stock. One analyst has rated the stock with a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Strong Sell" and a consensus price target of $2.50.

Claros Mortgage Trust Stock Performance

Claros Mortgage Trust stock opened at $1.76 on Friday. Claros Mortgage Trust has a fifty-two week low of $1.73 and a fifty-two week high of $3.99. The firm's 50 day simple moving average is $2.35 and its 200-day simple moving average is $2.46. The company has a debt-to-equity ratio of 1.81, a current ratio of 21.44 and a quick ratio of 21.44. The company has a market cap of $249.01 million, a P/E ratio of -0.46 and a beta of 1.13.

Claros Mortgage Trust (NYSE:CMTG - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The company reported ($0.63) EPS for the quarter, missing the consensus estimate of ($0.25) by ($0.38). Claros Mortgage Trust had a negative net margin of 354.13% and a negative return on equity of 19.70%. The firm had revenue of $30.00 million during the quarter, compared to analysts' expectations of $33.55 million. As a group, equities research analysts predict that Claros Mortgage Trust will post -1.76 EPS for the current year.

Institutional Investors Weigh In On Claros Mortgage Trust

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Hotchkis & Wiley Capital Management LLC boosted its position in Claros Mortgage Trust by 53.9% during the third quarter. Hotchkis & Wiley Capital Management LLC now owns 1,805,395 shares of the company's stock valued at $5,994,000 after purchasing an additional 632,105 shares during the last quarter. LM Asset Management Inc. purchased a new position in Claros Mortgage Trust in the fourth quarter valued at about $1,634,000. Charles Schwab Investment Management Inc. increased its position in Claros Mortgage Trust by 11.9% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 3,621,983 shares of the company's stock worth $11,083,000 after purchasing an additional 383,859 shares during the last quarter. Balyasny Asset Management L.P. increased its position in Claros Mortgage Trust by 22.9% in the 2nd quarter. Balyasny Asset Management L.P. now owns 1,946,597 shares of the company's stock worth $5,548,000 after purchasing an additional 362,130 shares during the last quarter. Finally, Algert Global LLC increased its position in Claros Mortgage Trust by 880.8% in the 3rd quarter. Algert Global LLC now owns 383,686 shares of the company's stock worth $1,274,000 after purchasing an additional 344,566 shares during the last quarter. Hedge funds and other institutional investors own 89.53% of the company's stock.

About Claros Mortgage Trust

Claros Mortgage Trust is a specialty finance company structured as a real estate investment trust that acquires and manages a portfolio of newly originated, conventional residential mortgage loans guaranteed or insured by U.S. government‐sponsored enterprises. The company concentrates on Agency collateral, including loans backed by Ginnie Mae, Fannie Mae and Freddie Mac, aiming to generate current income while preserving capital through high‐quality, credit‐enhanced assets.

Under an external management agreement with Claros Mortgage Capital Advisors LLC, the firm leverages a seasoned team to source, underwrite and service mortgage assets.

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