Stocks

New York Mortgage Trust Shares Rise 4.9% - Is it a Good Investment?

Published January 2, 2025

On January 2, 2025, shares of New York Mortgage Trust, Inc. (NASDAQ:NYMT) saw a significant increase of 4.9% in their trading value. The stock reached a peak price of $6.05, closing at the same figure after a day of trading. During this period, around 533,505 shares changed hands, which is a decrease of 17% compared to its average daily trading volume of 645,535 shares. The previous closing price for the stock was $5.77.

Recent Analyst Ratings

In terms of analyst recommendations, StockNews.com downgraded New York Mortgage Trust's shares from a “hold” to a “sell” rating in a research note issued on November 19. Currently, one analyst has given the stock a sell rating, three have maintained a hold rating, and one has issued a buy rating. MarketBeat indicates that New York Mortgage Trust has an average rating of “Hold” and a target price estimate of $7.75.

Stock Performance Overview

The market capitalization of New York Mortgage Trust stands at $555.25 million. The stock has a P/E ratio of -18.58 and a beta value of 1.94, suggesting a higher volatility compared to the market. The current 50-day moving average price for the stock is $5.97, while the 200-day moving average price is $6.15. Financial metrics show a debt-to-equity ratio of 7.24, along with a current ratio and quick ratio both at 8.25, indicating good liquidity.

Dividend Announcement

New York Mortgage Trust has also announced a quarterly dividend, which is scheduled for payment on January 23. Shareholders who are on record as of December 20 will receive a dividend of $0.20, translating to an annualized dividend of $0.80 and a yield of 13.05%. The ex-dividend date for this upcoming dividend is December 20. However, the company has a high dividend payout ratio currently sitting at -242.42%, indicating that its dividend payments exceed its earnings.

Institutional Investor Activity

In recent developments, several hedge funds have adjusted their stakes in New York Mortgage Trust. During the third quarter, McIlrath & Eck LLC acquired a new position valued at $62,000, while Sequoia Financial Advisors LLC and Calton & Associates Inc. made new purchases worth approximately $76,000 and $82,000, respectively. Evergreen Capital Management and AQR Capital Management also entered into new stakes in the company. Notably, 54.89% of the stock is currently held by institutional investors.

Company Profile

New York Mortgage Trust, Inc. specializes in acquiring, investing in, financing, and managing mortgage-related assets within the residential sector in the United States. The company focuses on a variety of investments, including residential loans, structured multi-family property investments such as preferred equity and mezzanine loans, as well as both agency and non-agency residential mortgage-backed securities (RMBS), and commercial mortgage-backed securities (CMBS), among other related assets.