Adamas Trust (NASDAQ:ADAM) Stock Price Down 5.7% on Analyst Downgrade

Key Points

• Adamas Trust shares fell 5.7% to about $6.17 after Keefe, Bruyette & Woods cut its price target from $9.25 to $8.50 while maintaining a market perform rating.
• Analyst sentiment remains cautious: one analyst rates the stock Buy and five rate it Hold, resulting in a consensus Hold rating and a $9.25 target price.
• The company raised its quarterly dividend to $0.30 per share, equivalent to an annualized $1.20 dividend and a reported 19.5% yield; institutional investors own 54.89% of the stock.

Adamas Trust, Inc. (NASDAQ:ADAM - Get Free Report) dropped 5.7% during mid-day trading on Monday after Keefe, Bruyette & Woods lowered their price target on the stock from $9.25 to $8.50. Keefe, Bruyette & Woods currently has a market perform rating on the stock. Adamas Trust traded as low as $6.22 and last traded at $6.1650. Approximately 561,138 shares were traded during mid-day trading, a decline of 34% from the average daily volume of 854,831 shares. The stock had previously closed at $6.54.

Several other equities analysts have also weighed in on the stock. UBS Group raised their price objective on shares of Adamas Trust from $8.50 to $9.50 and gave the company a "neutral" rating in a research report on Wednesday, August 19th. Wall Street Zen downgraded shares of Adamas Trust from a "buy" rating to a "hold" rating in a research report on Sunday, August 9th. Weiss Ratings restated a "hold (c)" rating on shares of Adamas Trust in a research note on Monday, October 19th. JonesTrading dropped their price target on shares of Adamas Trust from $10.00 to $9.50 and set a "buy" rating on the stock in a research note on Thursday. Finally, Zacks Research downgraded shares of Adamas Trust from a "strong-buy" rating to a "hold" rating in a report on Monday, September 28th. One analyst has rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $9.25.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Chicago Partners Investment Group LLC bought a new stake in Adamas Trust during the third quarter worth approximately $123,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of Adamas Trust in the third quarter valued at approximately $307,000. Wedbush Securities Inc. bought a new position in shares of Adamas Trust in the third quarter valued at approximately $412,000. Nisa Investment Advisors LLC lifted its stake in shares of Adamas Trust by 87.9% in the third quarter. Nisa Investment Advisors LLC now owns 11,951 shares of the company's stock worth $97,000 after buying an additional 5,592 shares during the last quarter. Finally, Novem Group lifted its stake in shares of Adamas Trust by 17.4% in the third quarter. Novem Group now owns 13,515 shares of the company's stock worth $105,000 after buying an additional 2,000 shares during the last quarter. 54.89% of the stock is owned by institutional investors.

Adamas Trust Price Performance

The company has a debt-to-equity ratio of 16.02, a current ratio of 19.06 and a quick ratio of 18.54. The stock's 50 day moving average price is $8.46 and its two-hundred day moving average price is $8.54. The firm has a market capitalization of $554.11 million, a price-to-earnings ratio of -10.84 and a beta of 1.27.

Adamas Trust (NASDAQ:ADAM - Get Free Report) last posted its earnings results on Wednesday, October 28th. The company reported $0.30 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.30. The business had revenue of ($119.44) million for the quarter. Adamas Trust had a negative net margin of 0.26% and a positive return on equity of 15.77%. On average, equities research analysts anticipate that Adamas Trust, Inc. will post 1.19 EPS for the current year.

Adamas Trust Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, October 28th. Shareholders of record on Tuesday, September 22nd were issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 19.5%. This is a positive change from Adamas Trust's previous quarterly dividend of $0.27. The ex-dividend date was Tuesday, September 22nd. Adamas Trust's dividend payout ratio is currently -210.53%.

Adamas Trust Company Profile

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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