Angel Oak Mortgage REIT (NYSE:AOMR) Announces Quarterly Earnings Results, Misses Estimates By $0.04 EPS

Angel Oak Mortgage REIT (NYSE:AOMR) issued its quarterly earnings data on Tuesday. The company reported $0.28 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.32 by ($0.04), FiscalAI reports. Angel Oak Mortgage REIT had a return on equity of 7.74% and a net margin of 11.85%. The firm had revenue of ($10.63) million for the quarter, compared to analyst estimates of $11.39 million.

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

• Higher rates and wider spreads pressured valuations: GAAP net loss was $16.7 million, or $0.72 per share, while GAAP book value fell 11.5% quarter over quarter to $8.97 per share. Management attributed the decline primarily to non-cash mark-to-market losses, split roughly evenly between interest-rate moves and non-QM spread widening.
• Underlying credit performance remained stable: Portfolio-wide 90-plus-day delinquencies were approximately 2.1%, unchanged from the prior quarter, and management said valuation declines did not reflect deterioration in expected loan cash flows. Distributable earnings improved to $6.4 million, or $0.28 per share, from $0.5 million, or $0.02, in the prior-year period.
• Securitization access and liquidity remained solid: The company completed two securitizations during the quarter and another in October, while renewing financing facilities at lower spreads. It ended the quarter with $49 million of cash, a 2.0-times recourse debt-to-equity ratio, and approximately $1 billion of undrawn loan financing capacity.
• Capital deployment remains disciplined amid compressed returns: Angel Oak purchased $233.1 million of loans during the quarter, but current investment returns remain below the company’s historical 15%-20% target because of higher rates. Management expects returns to recover toward that range if the rate environment remains stable and indicated that non-QM remains its primary acquisition focus.
• The quarterly dividend was maintained at $0.32 per share, payable November 30, 2026. Management also said fourth-quarter book value had recovered by approximately two percentage points as market conditions became more favorable.

Angel Oak Mortgage REIT Stock Up 6.7%

NYSE AOMR traded up $0.42 on Wednesday, reaching $6.70. The company had a trading volume of 42,684 shares, compared to its average volume of 117,958. The firm has a market capitalization of $155.57 million, a PE ratio of 8.93 and a beta of 1.30. Angel Oak Mortgage REIT has a 1 year low of $6.14 and a 1 year high of $9.48. The firm has a 50-day moving average of $7.62 and a 200-day moving average of $8.44. The company has a debt-to-equity ratio of 8.76, a current ratio of 7.16 and a quick ratio of 7.16.

Angel Oak Mortgage REIT Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 30th. Shareholders of record on Monday, November 23rd will be paid a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a dividend yield of 19.1%. The ex-dividend date is Monday, November 23rd. Angel Oak Mortgage REIT’s payout ratio is currently 170.67%.

Trending Headlines about Angel Oak Mortgage REIT

Here are the key news stories impacting Angel Oak Mortgage REIT this week:

• Positive Sentiment: The company declared a quarterly dividend of $0.32 per share, payable November 30 to shareholders of record November 23. The annualized payout is $1.28 per share. Dividend information
• Positive Sentiment: JonesTrading lowered its price target to $9.50 from $10.50 but kept its Buy rating, signaling continued potential upside in the analyst’s view. JonesTrading ratings
• Negative Sentiment: Third-quarter results missed expectations: reported EPS was $0.28 versus the $0.32 consensus, while reported revenue of negative $10.63 million compared with estimates of positive $11.39 million. Coverage also highlighted a GAAP loss and mounting challenges in the non-QM mortgage business. Q3 earnings coverage GAAP loss and non-QM challenges

Insider Activity at Angel Oak Mortgage REIT

In other Angel Oak Mortgage REIT news, Director W. Minami bought 6,800 shares of the company’s stock in a transaction dated Thursday, September 10th. The shares were acquired at an average cost of $8.10 per share, with a total value of $55,080.00. Following the completion of the transaction, the director owned 87,118 shares in the company, valued at $705,655.80. The trade was a 8.47% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Michael Fierman acquired 38,726 shares of the company’s stock in a transaction on Friday, September 25th. The shares were acquired at an average price of $7.50 per share, for a total transaction of $290,445.00. Following the completion of the acquisition, the director directly owned 105,247 shares in the company, valued at $789,352.50. The trade was a 58.22% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 2.90% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on AOMR shares. BTIG Research lowered their price target on shares of Angel Oak Mortgage REIT from $10.00 to $9.00 and set a “buy” rating for the company in a report on Tuesday, October 6th. Wall Street Zen raised shares of Angel Oak Mortgage REIT from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. Weiss Ratings downgraded shares of Angel Oak Mortgage REIT from a “sell (d+)” rating to a “sell (d)” rating in a research note on Tuesday. JonesTrading decreased their target price on shares of Angel Oak Mortgage REIT from $10.50 to $9.50 and set a “buy” rating on the stock in a research report on Tuesday. Finally, B. Riley Financial lowered their target price on shares of Angel Oak Mortgage REIT from $13.00 to $10.00 and set a “buy” rating for the company in a research note on Wednesday. Four equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Angel Oak Mortgage REIT presently has an average rating of “Moderate Buy” and a consensus target price of $9.65.

About Angel Oak Mortgage REIT

Angel Oak Mortgage REIT, Inc is a real estate investment trust focused on investing in residential mortgage assets. The company primarily targets non-qualified mortgage loans, or non-QM loans, which are residential mortgages made to creditworthy borrowers whose financial profiles may not fit traditional agency underwriting standards.

Its investment portfolio may also include residential mortgage-backed securities and other mortgage-related assets. Angel Oak Mortgage REIT seeks to generate income through interest payments and other returns from these investments, with an emphasis on loans secured by residential properties in the United States.

Angel Oak Mortgage REIT is externally managed by Angel Oak Capital Advisors, an investment management firm specializing in mortgage credit and related strategies.