Adamas Trust (NASDAQ:ADAM) Shares Gap Down - What's Next?

Key Points

• Adamas Trust shares fell 8.5%, opening at $7.10 versus the prior close of $7.78, with the stock trading below its 50-day and 200-day moving averages.
• Analyst sentiment is mostly cautious: five analysts rate the stock a Hold and one rates it a Buy, with a consensus price target of $9.50.
• The company reported quarterly earnings of $0.30 per share, in line with estimates, and increased its quarterly dividend to $0.30, representing a 16.9% annualized yield.

Adamas Trust, Inc. (NASDAQ:ADAM - Get Free Report) shares gapped down before the market opened on Thursday. The stock had previously closed at $7.78, but opened at $7.10. Adamas Trust shares last traded at $7.1190, with a volume of 243,501 shares changing hands.

Analyst Ratings Changes

A number of analysts recently commented on the stock. Weiss Ratings restated a "hold (c)" rating on shares of Adamas Trust in a research report on Monday, October 19th. UBS Group boosted their price target on shares of Adamas Trust from $8.50 to $9.50 and gave the stock a "neutral" rating in a research report on Wednesday, August 19th. Zacks Research downgraded shares of Adamas Trust from a "strong-buy" rating to a "hold" rating in a report on Monday, September 28th. Wall Street Zen downgraded shares of Adamas Trust from a "buy" rating to a "hold" rating in a report on Sunday, August 9th. Finally, JonesTrading reissued a "buy" rating and set a $10.00 price target on shares of Adamas Trust in a report on Thursday, September 17th. One investment analyst has rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, Adamas Trust currently has an average rating of "Hold" and a consensus price target of $9.50.

Adamas Trust Stock Down 8.5%

The company has a market cap of $639.50 million, a P/E ratio of 4.24 and a beta of 1.22. The firm's 50 day moving average price is $8.59 and its two-hundred day moving average price is $8.56. The company has a debt-to-equity ratio of 11.89, a quick ratio of 18.54 and a current ratio of 18.54.

Adamas Trust (NASDAQ:ADAM - Get Free Report) last announced its quarterly earnings results on Wednesday, October 28th. The company reported $0.30 earnings per share for the quarter, meeting the consensus estimate of $0.30. The business had revenue of ($119.44) million for the quarter. Adamas Trust had a net margin of 29.82% and a return on equity of 14.72%. Equities research analysts anticipate that Adamas Trust, Inc. will post 1.20 EPS for the current fiscal year.

Adamas Trust Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, October 28th. Stockholders of record on Tuesday, September 22nd were issued a $0.30 dividend. The ex-dividend date of this dividend was Tuesday, September 22nd. This is an increase from Adamas Trust's previous quarterly dividend of $0.27. This represents a $1.20 annualized dividend and a dividend yield of 16.9%. Adamas Trust's payout ratio is currently 71.43%.

Hedge Funds Weigh In On Adamas Trust

Institutional investors and hedge funds have recently made changes to their positions in the business. Royal Bank of Canada boosted its stake in Adamas Trust by 2.9% during the first quarter. Royal Bank of Canada now owns 43,261 shares of the company's stock valued at $318,000 after buying an additional 1,214 shares during the last quarter. Novem Group boosted its position in Adamas Trust by 17.4% during the 3rd quarter. Novem Group now owns 13,515 shares of the company's stock valued at $105,000 after acquiring an additional 2,000 shares in the last quarter. GAMMA Investing LLC raised its stake in shares of Adamas Trust by 26.1% during the 3rd quarter. GAMMA Investing LLC now owns 9,974 shares of the company's stock worth $78,000 after acquiring an additional 2,065 shares in the last quarter. Public Employees Retirement System of Ohio purchased a new stake in shares of Adamas Trust during the second quarter worth about $34,000. Finally, Nykredit A S acquired a new position in shares of Adamas Trust in the 2nd quarter valued at $36,000. Institutional investors own 54.89% of the company's stock.

About Adamas Trust

New York Mortgage Trust, Inc acquires, invests in, finances, and manages mortgage-related single-family and multi-family residential assets in the United States. Its targeted investments include residential loans, second mortgages, and business purpose loans; structured multi-family property investments, such as preferred equity in, and mezzanine loans to owners of multi-family properties, as well as joint venture equity investments in multi-family properties; non-agency residential mortgage-backed securities (RMBS); agency RMBS; commercial mortgage-backed securities (CMBS); and other mortgage, residential housing, and credit-related assets.

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