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

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

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 Trading Down 5.9%

Shares of NYSE:AOMR traded down $0.42 during midday trading on Tuesday, reaching $6.73. 77,492 shares of the company’s stock were exchanged, compared to its average volume of 116,675. The firm’s 50 day simple moving average is $7.66 and its two-hundred day simple moving average is $8.45. The company has a debt-to-equity ratio of 8.76, a current ratio of 7.16 and a quick ratio of 7.16. The stock has a market cap of $156.24 million, a price-to-earnings ratio of 8.97 and a beta of 1.28. Angel Oak Mortgage REIT has a fifty-two week low of $6.63 and a fifty-two week high of $9.48.

Insider Activity at Angel Oak Mortgage REIT

In related news, Director W D. Minami bought 6,800 shares of the stock in a transaction on Thursday, September 10th. The stock was bought at an average price of $8.10 per share, with a total value of $55,080.00. Following the completion of the purchase, the director directly owned 87,118 shares in the company, valued at $705,655.80. This represents a 8.47% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Director Michael Fierman purchased 38,726 shares of the company’s stock in a transaction on Friday, September 25th. The shares were bought at an average price of $7.50 per share, with a total value of $290,445.00. Following the completion of the transaction, the director owned 105,247 shares of the company’s stock, valued at approximately $789,352.50. The trade was a 58.22% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 2.90% of the stock is owned by insiders.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on AOMR shares. Wall Street Zen upgraded shares of Angel Oak Mortgage REIT from a “sell” rating to a “hold” rating in a research report on Saturday, August 8th. Wells Fargo & Company reduced their target price on shares of Angel Oak Mortgage REIT from $11.00 to $10.00 and set an “overweight” rating on the stock in a research note on Wednesday, August 5th. Weiss Ratings lowered shares of Angel Oak Mortgage REIT from a “hold (c-)” rating to a “sell (d+)” rating in a report on Thursday, October 8th. JonesTrading reiterated a “buy” rating and issued a $10.50 target price on shares of Angel Oak Mortgage REIT in a report on Tuesday, August 4th. Finally, BTIG Research dropped 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 research note on Tuesday, October 6th. Three analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $9.81.

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.