Adamas Trust (NASDAQ:ADAM) Hits New 1-Year Low on Analyst Downgrade

Adamas Trust, Inc. (NASDAQ:ADAM)’s stock price hit a new 52-week low during trading on Friday after Keefe, Bruyette & Woods lowered their price target on the stock from $9.25 to $8.50. Keefe, Bruyette & Woods currently has a market perform rating on the stock. Adamas Trust traded as low as $6.54 and last traded at $6.54, with a volume of 1,749,002 shares trading hands. The stock had previously closed at $7.18.

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

Trending Headlines about 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 Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the company. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in Adamas Trust during the third quarter worth about $307,000. Wedbush Securities Inc. purchased a new stake in Adamas Trust in the 3rd quarter valued at approximately $412,000. Nisa Investment Advisors LLC boosted its holdings in Adamas Trust by 87.9% in the 3rd quarter. Nisa Investment Advisors LLC now owns 11,951 shares of the company’s stock valued at $97,000 after purchasing an additional 5,592 shares in the last quarter. Novem Group increased its position in Adamas Trust by 17.4% during the 3rd quarter. Novem Group now owns 13,515 shares of the company’s stock worth $105,000 after purchasing an additional 2,000 shares during the period. Finally, SteelPeak Wealth LLC acquired a new position in Adamas Trust during the 3rd quarter worth approximately $81,000. 54.89% of the stock is currently owned by institutional investors and hedge funds.

Adamas Trust Price Performance

The company has a market cap of $587.82 million, a price-to-earnings ratio of -11.47 and a beta of 1.22. The company has a 50-day simple moving average of $8.53 and a 200-day simple moving average of $8.55. The company has a debt-to-equity ratio of 11.89, a quick ratio of 18.54 and a current ratio of 18.54.

Adamas Trust (NASDAQ:ADAM) last posted its quarterly earnings results on Wednesday, October 28th. The company reported $0.30 EPS for the quarter, meeting the consensus estimate of $0.30. The business had revenue of ($119.44) million during the quarter. Adamas Trust had a positive return on equity of 15.00% and a negative net margin of 0.26%. As a group, research analysts predict that Adamas Trust, Inc. will post 1.20 earnings per share for the current year.

Adamas Trust Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, October 28th. Investors of record on Tuesday, September 22nd were issued a dividend of $0.30 per share. This is a boost from Adamas Trust’s previous quarterly dividend of $0.27. This represents a $1.20 dividend on an annualized basis and a yield of 18.3%. The ex-dividend date of this dividend was Tuesday, September 22nd. Adamas Trust’s dividend payout ratio is currently 71.43%.

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.