AG Mortgage Investment Trust (NYSE:MITT) Posts Quarterly Earnings Results, Misses Expectations By $0.06 EPS

Key Points

• AG Mortgage Investment Trust reported quarterly EPS of $0.21, missing the $0.27 consensus estimate by $0.06. Book value declined 7.3% to $9.27 per share, and economic return was negative 4.9% including the $0.24 dividend.
• The REIT completed three home-equity securitizations totaling about $1.25 billion and says it is prioritizing home-equity investments. Management also expects redeploying proceeds from legacy commercial loan resolutions into residential assets could add $0.15–$0.20 to annual EAD in 2027, depending on timing.
• MITT’s quarterly dividend was $0.24 per share, equivalent to a 17.3% yield at the cited share price; its payout ratio was 129.73%.

AG Mortgage Investment Trust (NYSE:MITT - Get Free Report) issued its quarterly earnings results on Wednesday. The real estate investment trust reported $0.21 EPS for the quarter, missing the consensus estimate of $0.27 by ($0.06), FiscalAI reports. AG Mortgage Investment Trust had a net margin of 8.55% and a return on equity of 15.59%.

Here are the key takeaways from AG Mortgage Investment Trust's conference call:

• Book value fell 7.3% to $9.27 per share as September’s rate and spread volatility drove mark-to-market losses; including the $0.24 dividend, economic return was negative 4.9%. EAD was $0.21 per share, below the dividend.
• MITT sponsored three home-equity securitizations totaling about $1.25 billion and increased economic leverage only modestly, to roughly 2.0x. Management is prioritizing home equity, citing its relative appeal to borrowers who want to retain low-rate first mortgages.
• Management reported progress resolving legacy commercial loans, with a hospitality buyer deposit secured and a buyer selected for the retail exposure. It expects redeploying proceeds into residential investments to add approximately $0.15–$0.20 of annual EAD in 2027, depending on timing.
• Arc Home originated about $1 billion, up 19% year over year, but contributed roughly break-even EAD as September volatility offset earlier profitability. Management said the outlook remains uncertain, while home-equity originations at Arc are beginning to ramp.
• The proposed Cherry Hill merger advanced, with the joint proxy statement and prospectus filed and shareholder meetings expected in December. MITT incurred about $2 million in transaction expenses during the quarter.

AG Mortgage Investment Trust Price Performance

NYSE:MITT traded down $0.12 during mid-day trading on Wednesday, reaching $5.55. The stock had a trading volume of 296,275 shares, compared to its average volume of 267,247. The business's 50 day moving average is $6.02 and its 200 day moving average is $7.34. AG Mortgage Investment Trust has a fifty-two week low of $5.20 and a fifty-two week high of $9.27. The stock has a market cap of $176.65 million, a P/E ratio of 7.49 and a beta of 1.78.

AG Mortgage Investment Trust Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, October 30th. Investors of record on Wednesday, September 30th were paid a $0.24 dividend. The ex-dividend date of this dividend was Wednesday, September 30th. This represents a $0.96 annualized dividend and a dividend yield of 17.3%. AG Mortgage Investment Trust's payout ratio is presently 129.73%.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on MITT shares. JonesTrading decreased their target price on AG Mortgage Investment Trust from $9.00 to $8.00 and set a "buy" rating for the company in a research report on Monday, August 10th. Piper Sandler dropped their target price on AG Mortgage Investment Trust from $9.00 to $8.00 and set an "overweight" rating on the stock in a report on Friday, October 9th. Citigroup restated a "market outperform" rating on shares of AG Mortgage Investment Trust in a report on Thursday, October 15th. Citizens Jmp dropped their price objective on shares of AG Mortgage Investment Trust from $9.25 to $8.50 and set a "market outperform" rating on the stock in a research note on Thursday, October 15th. Finally, Weiss Ratings downgraded shares of AG Mortgage Investment Trust from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday, October 8th. Five analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $8.54.

About AG Mortgage Investment Trust

AG Mortgage Investment Trust, Inc is a real estate investment trust that invests primarily in residential mortgage-related assets. The company seeks to generate income through a portfolio that may include agency and non-agency residential mortgage-backed securities, residential mortgage loans, mortgage servicing rights and other housing-related investments.

AG Mortgage Investment Trust's investment activities are focused mainly on the U.S. residential mortgage market. Its portfolio may include loans and securities backed by a range of residential properties and borrowers, providing exposure to different segments of the housing and mortgage finance sectors.

Founded in 2011, the company is externally managed by AG REIT Management, LLC, an affiliate of Angelo Gordon, an alternative investment firm.

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