Granite Point Mortgage Trust (NYSE:GPMT) Announces Quarterly Earnings Results

Key Points

• Reported results beat estimates: Granite Point posted EPS of ($0.06) vs. consensus ($0.19) and revenue of $11.22M vs. $7.40M, but remains unprofitable with a negative ROE (‑15.52%) and net margin (‑31.24%).
• Generous but risky dividend: The company paid a $0.05 quarterly dividend (annualized $0.20) for a 14.2% yield, although the dividend payout ratio is negative (‑17.24%), raising sustainability concerns.
• Stocks and outlook: Shares trade around $1.41 with a $67.47M market cap and a 12‑month low of $1.24; analysts are mixed (average "Hold") with a consensus target of $2.68 and several recent downgrades to sell/strong sell.

Granite Point Mortgage Trust (NYSE:GPMT - Get Free Report) issued its earnings results on Tuesday. The company reported ($0.06) earnings per share for the quarter, topping the consensus estimate of ($0.19) by $0.13, FiscalAI reports. The company had revenue of $11.22 million for the quarter, compared to analyst estimates of $7.40 million. Granite Point Mortgage Trust had a negative return on equity of 15.52% and a negative net margin of 31.24%.

Granite Point Mortgage Trust Trading Down 0.1%

GPMT traded down $0.00 during midday trading on Tuesday, reaching $1.41. The company's stock had a trading volume of 324,236 shares, compared to its average volume of 188,085. The stock has a market cap of $67.47 million, a P/E ratio of -1.21 and a beta of 1.65. The company has a fifty day simple moving average of $1.55 and a 200 day simple moving average of $2.16. Granite Point Mortgage Trust has a twelve month low of $1.24 and a twelve month high of $3.12.

Granite Point Mortgage Trust Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Wednesday, April 1st were paid a $0.05 dividend. The ex-dividend date was Wednesday, April 1st. This represents a $0.20 dividend on an annualized basis and a yield of 14.2%. Granite Point Mortgage Trust's dividend payout ratio (DPR) is presently -17.24%.

Institutional Trading of Granite Point Mortgage Trust

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Advisory Services Network LLC acquired a new stake in Granite Point Mortgage Trust in the 3rd quarter valued at approximately $26,000. LPL Financial LLC acquired a new stake in Granite Point Mortgage Trust in the 4th quarter worth $25,000. B. Riley Wealth Advisors Inc. acquired a new stake in Granite Point Mortgage Trust in the 2nd quarter worth $28,000. Hudson Bay Capital Management LP acquired a new stake in Granite Point Mortgage Trust in the 2nd quarter worth $31,000. Finally, Jump Financial LLC acquired a new stake in Granite Point Mortgage Trust in the 2nd quarter worth $31,000. Institutional investors and hedge funds own 51.63% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the stock. Compass Point set a $2.05 price objective on shares of Granite Point Mortgage Trust in a report on Friday, February 13th. Wall Street Zen lowered Granite Point Mortgage Trust from a "hold" rating to a "strong sell" rating in a report on Saturday, March 7th. Keefe, Bruyette & Woods cut their target price on Granite Point Mortgage Trust from $2.75 to $2.50 and set a "market perform" rating on the stock in a report on Thursday, January 8th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Granite Point Mortgage Trust in a report on Tuesday, April 21st. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $2.68.

About Granite Point Mortgage Trust

Granite Point Mortgage Trust, Inc is a specialty finance company that invests directly in commercial real estate debt. The company focuses on originating, acquiring and managing senior preferred and mezzanine loans secured by income-producing real estate across diverse property types, including multifamily, office, industrial and retail assets. Granite Point Mortgage Trust operates as a real estate investment trust (REIT), providing investors with exposure to floating-rate commercial mortgage loan investments.

Granite Point's investment strategy centers on structuring loans to deliver attractive risk-adjusted returns, with portfolio allocations spanning senior loans, B-notes and mezzanine financings.

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