Claros Mortgage Trust (NYSE:CMTG) Issues Earnings Results

Key Points

• Claros Mortgage Trust reported quarterly EPS of -$0.52, missing analyst expectations of -$0.24 by a wide margin. Revenue also came in below estimates at $29.52 million versus the expected $36.94 million.
• The stock was under pressure after the report, trading down to $2.43 on Friday, near its 52-week low of $2.05. The company also posted weak profitability metrics, including a negative net margin and negative return on equity.
• Analysts remain cautious, with recent downgrades and price target cuts from firms including Wall Street Zen, Keefe Bruyette & Woods, and Wells Fargo. Despite that, insiders have been buying shares, with directors and executives purchasing 95,000 shares over the last 90 days.

Claros Mortgage Trust (NYSE:CMTG - Get Free Report) announced its earnings results on Wednesday. The company reported ($0.52) earnings per share for the quarter, missing the consensus estimate of ($0.24) by ($0.28), FiscalAI reports. Claros Mortgage Trust had a negative net margin of 267.14% and a negative return on equity of 18.81%. The business had revenue of $29.52 million for the quarter, compared to analyst estimates of $36.94 million.

Claros Mortgage Trust Stock Performance

Claros Mortgage Trust stock traded down $0.10 during midday trading on Friday, reaching $2.43. 795,731 shares of the stock traded hands, compared to its average volume of 493,229. Claros Mortgage Trust has a fifty-two week low of $2.05 and a fifty-two week high of $3.99. The company has a current ratio of 21.44, a quick ratio of 21.44 and a debt-to-equity ratio of 1.72. The firm has a market cap of $340.03 million, a price-to-earnings ratio of -0.73 and a beta of 1.18. The firm has a fifty day moving average price of $2.45 and a two-hundred day moving average price of $2.84.

Analyst Upgrades and Downgrades

CMTG has been the subject of a number of recent analyst reports. Wall Street Zen downgraded shares of Claros Mortgage Trust from a "hold" rating to a "sell" rating in a research report on Saturday, February 21st. Keefe, Bruyette & Woods cut their target price on shares of Claros Mortgage Trust from $3.00 to $2.50 and set an "underperform" rating on the stock in a research note on Monday, March 2nd. Finally, Wells Fargo & Company reduced their target price on Claros Mortgage Trust from $3.00 to $2.50 and set an "underweight" rating on the stock in a report on Friday, February 20th. One investment analyst has rated the stock with a Buy rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Reduce" and a consensus price target of $3.00.

Insider Activity at Claros Mortgage Trust

In other news, Director W Edward Walter purchased 25,000 shares of the stock in a transaction dated Tuesday, February 24th. The shares were bought at an average cost of $2.28 per share, for a total transaction of $57,000.00. Following the transaction, the director owned 32,000 shares in the company, valued at $72,960. This trade represents a 357.14% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Mike Mcgillis acquired 20,000 shares of the company's stock in a transaction dated Monday, March 2nd. The stock was purchased at an average cost of $2.34 per share, for a total transaction of $46,800.00. Following the purchase, the chief financial officer directly owned 603,007 shares in the company, valued at approximately $1,411,036.38. This represents a 3.43% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have purchased a total of 95,000 shares of company stock worth $224,300 over the last ninety days. 1.80% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Claros Mortgage Trust

Institutional investors and hedge funds have recently bought and sold shares of the business. Hotchkis & Wiley Capital Management LLC grew its stake in shares of Claros Mortgage Trust by 53.9% in the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 1,805,395 shares of the company's stock worth $5,994,000 after purchasing an additional 632,105 shares during the last quarter. LM Asset Management Inc. bought a new stake in Claros Mortgage Trust during the fourth quarter worth approximately $1,634,000. Charles Schwab Investment Management Inc. boosted its holdings in Claros Mortgage Trust by 11.9% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,621,983 shares of the company's stock worth $11,083,000 after buying an additional 383,859 shares in the last quarter. Balyasny Asset Management L.P. grew its position in Claros Mortgage Trust by 22.9% in the second quarter. Balyasny Asset Management L.P. now owns 1,946,597 shares of the company's stock worth $5,548,000 after buying an additional 362,130 shares during the last quarter. Finally, Algert Global LLC increased its holdings in shares of Claros Mortgage Trust by 880.8% in the third quarter. Algert Global LLC now owns 383,686 shares of the company's stock valued at $1,274,000 after buying an additional 344,566 shares in the last quarter. 89.53% of the stock is owned by institutional investors and hedge funds.

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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