Adamas Trust (NASDAQ:ADAM) Shares Gap Down After Analyst Downgrade

Adamas Trust, Inc. (NASDAQ:ADAM)’s stock price gapped down prior to trading on Thursday after Keefe, Bruyette & Woods lowered their price target on the stock from $9.25 to $8.50. The stock had previously closed at $7.78, but opened at $7.10. Keefe, Bruyette & Woods currently has a market perform rating on the stock. Adamas Trust shares last traded at $7.1190, with a volume of 243,501 shares trading hands.

A number of other research firms have also weighed in on ADAM. Wall Street Zen lowered shares of Adamas Trust from a “buy” rating to a “hold” rating in a research report on Sunday, August 9th. UBS Group boosted their price objective on shares of Adamas Trust from $8.50 to $9.50 and gave the company a “neutral” rating in a research note on Wednesday, August 19th. JonesTrading cut their price objective on shares of Adamas Trust from $10.00 to $9.50 and set a “buy” rating for the company in a research report on Thursday. Zacks Research cut shares of Adamas Trust from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 28th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Adamas Trust in a report on Monday, October 19th. One research analyst has rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $9.25.

Key Stories Impacting Adamas Trust

Here are the key news stories impacting Adamas Trust this week:

• Positive Sentiment: Adamas Trust said adjusted book value increased approximately 4% early in the fourth quarter, while the company reduced its $2.9 billion “to-be-announced” (TBA) short position by roughly 76%. The reduction may lower exposure to mortgage-market volatility. Adamas Trust book value and TBA short update
• Positive Sentiment: JonesTrading maintained a “buy” rating, although it lowered its price target from $10.00 to $9.50. The revised target still implies substantial upside from the recent trading level. JonesTrading analyst recommendation
• Neutral Sentiment: Third-quarter adjusted earnings were $0.30 per share, matching consensus and improving from $0.24 a year earlier. The earnings call and results provided no clear earnings surprise to drive a strong bullish reaction. Adamas Trust third-quarter results
• Negative Sentiment: Keefe, Bruyette & Woods cut its price target from $9.25 to $8.50 and assigned a “market perform” rating. Although the target indicates potential upside, the reduction signals less confidence in near-term appreciation. Keefe, Bruyette & Woods analyst recommendation
• Negative Sentiment: Investor concerns remain elevated because Adamas Trust reported a negative net margin, carries very high debt relative to equity, and its valuation and earnings profile remain under pressure. A broader warning article comparing certain dividend payers with failed Office Properties Income Trust may also weigh on sentiment toward higher-risk income-oriented real estate stocks. Warning signs among dividend stocks

Institutional Trading of Adamas Trust

Hedge funds have recently modified their holdings of the business. Public Employees Retirement System of Ohio purchased a new position in Adamas Trust in the second quarter worth $34,000. Nykredit A S acquired a new stake in Adamas Trust in the second quarter valued at $36,000. Integrated Wealth Concepts LLC purchased a new stake in shares of Adamas Trust during the 2nd quarter worth $48,000. Hillsdale Investment Management Inc. purchased a new stake in shares of Adamas Trust during the 1st quarter worth $60,000. Finally, GAMMA Investing LLC boosted its position 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 purchasing an additional 2,065 shares in the last quarter. 54.89% of the stock is owned by institutional investors and hedge funds.

Adamas Trust Stock Performance

The company has a current ratio of 19.06, a quick ratio of 18.54 and a debt-to-equity ratio of 16.02. The firm has a market capitalization of $587.82 million, a price-to-earnings ratio of -11.47 and a beta of 1.22. The stock’s 50 day moving average price is $8.46 and its two-hundred day moving average price is $8.54.

Adamas Trust (NASDAQ:ADAM) last announced its quarterly 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. Adamas Trust had a negative net margin of 0.26% and a positive return on equity of 15.77%. The business had revenue of ($119.44) million during the quarter. On average, analysts forecast that Adamas Trust, Inc. will post 1.20 EPS for the current year.

Adamas Trust Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, October 28th. Shareholders of record on Tuesday, September 22nd were given a dividend of $0.30 per share. The ex-dividend date 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 yield of 18.3%. Adamas Trust’s dividend payout ratio (DPR) is currently -210.53%.

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.