Wells Fargo & Company Issues Pessimistic Forecast for Claros Mortgage Trust (NYSE:CMTG) Stock Price

Key Points

• Wells Fargo cut Claros Mortgage Trust’s price target from $2.50 to $1.75 and maintained an “underweight” rating, implying only 2.94% potential upside from the stock’s $1.70 price.
• Analyst sentiment is broadly negative: Claros has an average “Strong Sell” rating and a consensus target price of $2.22, with three analysts rating it a sell and one a hold.
• The company reported a larger-than-expected quarterly loss of $0.63 per share and revenue below estimates, while the stock trades near its 12-month low and has posted deeply negative net margins.

Claros Mortgage Trust (NYSE:CMTG - Get Free Report) had its price target decreased by analysts at Wells Fargo & Company from $2.50 to $1.75 in a note issued to investors on Wednesday,Benzinga reports. The firm currently has an "underweight" rating on the stock. Wells Fargo & Company's price target would indicate a potential upside of 2.94% from the company's current price.

Other equities research analysts have also issued reports about the company. Keefe, Bruyette & Woods decreased their target price on Claros Mortgage Trust from $2.50 to $2.15 and set an "underperform" rating for the company in a research report on Tuesday. Weiss Ratings downgraded Claros Mortgage Trust from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Monday. UBS Group started coverage on Claros Mortgage Trust in a research note on Thursday, July 16th. They set a "neutral" rating and a $2.75 price target on the stock. Finally, Wall Street Zen downgraded Claros Mortgage Trust from a "hold" rating to a "strong sell" rating in a report on Saturday. One equities research analyst has rated the stock with a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, Claros Mortgage Trust presently has an average rating of "Strong Sell" and a consensus target price of $2.22.

Claros Mortgage Trust Trading Down 1.7%

CMTG stock traded down $0.03 during mid-day trading on Wednesday, reaching $1.70. The company had a trading volume of 157,032 shares, compared to its average volume of 559,153. The company has a debt-to-equity ratio of 1.81, a current ratio of 21.44 and a quick ratio of 21.44. The company has a market capitalization of $239.84 million, a PE ratio of -0.44 and a beta of 1.16. The firm has a 50 day moving average of $2.33 and a 200 day moving average of $2.44. Claros Mortgage Trust has a 12 month low of $1.67 and a 12 month high of $3.99.

Claros Mortgage Trust (NYSE:CMTG - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported ($0.63) earnings per share for the quarter, missing the consensus estimate of ($0.25) by ($0.38). The company had revenue of $30.00 million for the quarter, compared to the consensus estimate of $33.55 million. Claros Mortgage Trust had a negative net margin of 354.13% and a negative return on equity of 19.70%. On average, equities analysts predict that Claros Mortgage Trust will post -1.76 earnings per share for the current fiscal year.

Institutional Trading of Claros Mortgage Trust

Hedge funds and other institutional investors have recently bought and sold shares of the stock. AQR Capital Management LLC bought a new position in shares of Claros Mortgage Trust in the 1st quarter worth $78,000. Jane Street Group LLC boosted its position in Claros Mortgage Trust by 620.9% during the first quarter. Jane Street Group LLC now owns 185,147 shares of the company's stock valued at $691,000 after purchasing an additional 159,465 shares in the last quarter. Acadian Asset Management LLC bought a new stake in Claros Mortgage Trust during the first quarter valued at about $126,000. Strs Ohio purchased a new position in Claros Mortgage Trust in the first quarter valued at about $61,000. Finally, Rhumbline Advisers grew its stake in Claros Mortgage Trust by 5.6% in the second quarter. Rhumbline Advisers now owns 138,276 shares of the company's stock valued at $394,000 after purchasing an additional 7,301 shares during the last quarter. Institutional investors own 89.53% of the company's stock.

Claros Mortgage Trust Company Profile

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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