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

Adamas Trust, Inc. (NASDAQ:ADAM)’s share price gapped down before the market opened 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.

Several other equities analysts have also commented on ADAM. JonesTrading dropped their target price on Adamas Trust from $10.00 to $9.50 and set a “buy” rating for the company in a research note on Thursday. Weiss Ratings reissued a “hold (c)” rating on shares of Adamas Trust in a research note on Monday, October 19th. UBS Group lifted their price target on Adamas Trust from $8.50 to $9.50 and gave the company a “neutral” rating in a report on Wednesday, August 19th. Wall Street Zen lowered shares of Adamas Trust from a “buy” rating to a “hold” rating in a report on Sunday, August 9th. Finally, Zacks Research cut shares of Adamas Trust from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 28th. One research analyst has rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average 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 Investors Weigh In On Adamas Trust

Several hedge funds and other institutional investors have recently modified their holdings of ADAM. BlackRock Inc. acquired a new stake in Adamas Trust during the second quarter worth about $127,863,000. Bessemer Group Inc. boosted its stake in Adamas Trust by 48,152.5% in the first quarter. Bessemer Group Inc. now owns 530,778 shares of the company’s stock valued at $3,907,000 after acquiring an additional 529,678 shares during the period. Bank of New York Mellon Corp bought a new position in shares of Adamas Trust during the second quarter valued at approximately $4,657,000. Principal Financial Group Inc. grew its holdings in shares of Adamas Trust by 2.0% during the first quarter. Principal Financial Group Inc. now owns 408,275 shares of the company’s stock valued at $3,005,000 after purchasing an additional 7,947 shares during the last quarter. Finally, Bank of America Corp DE acquired a new stake in shares of Adamas Trust during the 2nd quarter worth approximately $3,461,000. Institutional investors own 54.89% of the company’s stock.

Adamas Trust Price Performance

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 business has a 50-day moving average price of $8.46 and a two-hundred day moving average price of $8.54. The company has a current ratio of 19.06, a quick ratio of 18.54 and a debt-to-equity ratio of 16.02.

Adamas Trust (NASDAQ:ADAM) last issued its earnings results on Wednesday, October 28th. The company reported $0.30 earnings per share for the quarter, hitting the consensus estimate of $0.30. The firm had revenue of ($119.44) million for the quarter. Adamas Trust had a positive return on equity of 15.77% and a negative net margin of 0.26%. As a group, research analysts forecast that Adamas Trust, Inc. will post 1.20 EPS for the current year.

Adamas Trust Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 28th. Stockholders of record on Tuesday, September 22nd were issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 18.3%. This is a boost from Adamas Trust’s previous quarterly dividend of $0.27. The ex-dividend date of this dividend was Tuesday, September 22nd. Adamas Trust’s dividend payout ratio is presently -210.53%.

Adamas Trust Company Profile

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.