Angel Oak Mortgage REIT (NYSE:AOMR) Releases Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Angel Oak Mortgage REIT (NYSE:AOMR) announced its quarterly earnings data on Tuesday. The company reported $0.35 EPS for the quarter, beating the consensus estimate of $0.33 by $0.02, Zacks reports. Angel Oak Mortgage REIT had a net margin of 10.64% and a return on equity of 5.25%.

Here are the key takeaways from Angel Oak Mortgage REIT’s conference call:

• Distributable earnings rose to $9.0 million from $2.6 million a year ago, while net interest income increased 8% year over year to $10.7 million and interest income grew 18% to $41.4 million.
• Management repurchased $15 million of common equity at accretive return levels and negotiated a 35-basis-point reduction in the spread on its largest warehouse facility, actions expected to improve future returns.
• Following two post-quarter securitizations, recourse debt-to-equity declined from 2.3 times to approximately 1.0 times, while the company retained about $900 million of undrawn financing capacity and plans to maintain roughly four non-QM securitizations annually.
• GAAP book value per share fell 1.7% to $10.13, primarily due to unrealized portfolio and derivative losses, although economic book value declined only 0.3% and management said book value has remained relatively flat since quarter-end; the company declared a $0.32 per-share dividend.
• Angel Oak plans to keep HELOCs as a selective 10%–15% allocation of the portfolio, citing attractive returns but emphasizing cautious underwriting amid weaker broader consumer credit and potential increases in prepayment speeds as mortgage rates decline.

Angel Oak Mortgage REIT Stock Up 1.4%

NYSE:AOMR traded up $0.12 during midday trading on Tuesday, reaching $8.90. 46,443 shares of the stock traded hands, compared to its average volume of 106,229. Angel Oak Mortgage REIT has a 12-month low of $7.95 and a 12-month high of $10.14. The business has a 50-day moving average of $8.70 and a two-hundred day moving average of $8.70. The company has a debt-to-equity ratio of 8.44, a quick ratio of 13.09 and a current ratio of 13.09. The stock has a market capitalization of $221.91 million, a PE ratio of 13.83 and a beta of 1.25.

Hedge Funds Weigh In On Angel Oak Mortgage REIT

A number of large investors have recently made changes to their positions in the business. Strs Ohio purchased a new stake in shares of Angel Oak Mortgage REIT during the 1st quarter valued at $25,000. Kemnay Advisory Services Inc. purchased a new position in Angel Oak Mortgage REIT during the 4th quarter worth $26,000. BNP Paribas Financial Markets increased its position in Angel Oak Mortgage REIT by 343.0% during the 2nd quarter. BNP Paribas Financial Markets now owns 3,929 shares of the company’s stock valued at $37,000 after buying an additional 3,042 shares in the last quarter. Marshall Wace LLP acquired a new position in Angel Oak Mortgage REIT during the 4th quarter valued at about $87,000. Finally, Public Employees Retirement System of Ohio purchased a new stake in Angel Oak Mortgage REIT in the third quarter valued at about $88,000. 80.15% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on AOMR shares. Weiss Ratings lowered Angel Oak Mortgage REIT from a “hold (c)” rating to a “sell (d+)” rating in a research report on Friday, May 15th. BTIG Research lowered their target price on Angel Oak Mortgage REIT from $13.50 to $10.00 and set a “buy” rating for the company in a research report on Wednesday, June 17th. Two equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $10.08.

Angel Oak Mortgage REIT Company Profile

Angel Oak Mortgage REIT, Inc (NYSE: AOMR) is a real estate investment trust that specializes in a diversified portfolio of residential mortgage assets. The company primarily invests in non-agency residential mortgage-backed securities (RMBS), residential whole loans and credit risk transfer securities issued by government-sponsored enterprises. By focusing on these structured credit instruments, Angel Oak Mortgage REIT seeks to generate attractive risk-adjusted returns through a combination of net interest income and potential capital appreciation.

The firm employs leverage through repurchase financing facilities and actively manages duration and credit exposure to adapt to changing market conditions.