Claros Mortgage Trust (NYSE:CMTG) Upgraded to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Claros Mortgage Trust from “sell” to “hold”, but the broader analyst view remains cautious with a consensus rating of “Reduce” and an average price target of $3.00.
• The stock fell 3.8% and opened at $2.43, while the company also reported a weak quarter with EPS of -$0.52 versus estimates of -$0.24 and revenue of $29.52 million below expectations.
• Despite the soft fundamentals, insiders have been buying shares: CEO Richard Mack and CFO Mike Mcgillis both added to their positions in recent weeks, totaling 95,000 shares purchased over the last 90 days.

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

Other equities analysts have also issued research reports about the stock. Wells Fargo & Company decreased their price target on shares of Claros Mortgage Trust from $3.00 to $2.50 and set an "underweight" rating on the stock in a report on Friday, February 20th. Keefe, Bruyette & Woods cut their target price on shares of Claros Mortgage Trust from $3.00 to $2.50 and set an "underperform" rating for the company in a research report on Monday, March 2nd. One research analyst has rated the stock with a Buy rating and three have issued a Sell rating to the company. According to MarketBeat, Claros Mortgage Trust has a consensus rating of "Reduce" and a consensus price target of $3.00.

Claros Mortgage Trust Trading Down 3.8%

Shares of Claros Mortgage Trust stock opened at $2.43 on Friday. Claros Mortgage Trust has a 12-month low of $2.05 and a 12-month high of $3.99. The company has a market cap of $340.03 million, a price-to-earnings ratio of -0.73 and a beta of 1.18. The company has a current ratio of 21.44, a quick ratio of 21.44 and a debt-to-equity ratio of 1.53. The company's 50-day moving average price is $2.45 and its 200-day moving average price is $2.84.

Claros Mortgage Trust (NYSE:CMTG - Get Free Report) last announced its earnings results on Wednesday, May 6th. The company reported ($0.52) earnings per share for the quarter, missing analysts' consensus estimates of ($0.24) by ($0.28). The company had revenue of $29.52 million during the quarter, compared to analysts' expectations of $36.94 million. Claros Mortgage Trust had a negative net margin of 267.14% and a negative return on equity of 19.34%. On average, equities analysts expect that Claros Mortgage Trust will post -1.66 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Claros Mortgage Trust news, CEO Richard Mack purchased 50,000 shares of the firm's stock in a transaction on Friday, February 27th. The shares were purchased at an average cost of $2.41 per share, with a total value of $120,500.00. Following the completion of the purchase, the chief executive officer owned 2,717,330 shares of the company's stock, valued at $6,548,765.30. The trade was a 1.87% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Mike Mcgillis purchased 20,000 shares of the firm's stock in a transaction on Monday, March 2nd. The shares were acquired at an average cost of $2.34 per share, for a total transaction of $46,800.00. Following the completion of the purchase, the chief financial officer directly owned 603,007 shares of the company's stock, valued at approximately $1,411,036.38. This represents a 3.43% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders have acquired 95,000 shares of company stock valued at $224,300. 1.80% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. BNP Paribas Financial Markets raised its stake in shares of Claros Mortgage Trust by 75.8% during the second quarter. BNP Paribas Financial Markets now owns 8,938 shares of the company's stock worth $25,000 after acquiring an additional 3,854 shares in the last quarter. Focus Partners Wealth purchased a new position in shares of Claros Mortgage Trust during the third quarter worth approximately $34,000. Wealth Enhancement Advisory Services LLC purchased a new position in shares of Claros Mortgage Trust during the third quarter worth approximately $34,000. Mariner LLC purchased a new position in shares of Claros Mortgage Trust during the fourth quarter worth approximately $38,000. Finally, Jump Financial LLC purchased a new position in shares of Claros Mortgage Trust during the second quarter worth approximately $44,000. 89.53% of the stock is owned by hedge funds and other institutional investors.

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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