New York Mortgage Trust Receives Upgrade Despite BVPS Drop

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New York Mortgage ($NASDAQ:NYMT) Trust (NMT) has recently received an upgrade on their rating despite a drop in their book value per share (BVPS). The rating was upgraded from a “Hold” to a “Buy” by the analysts at Zacks Investment Research. This upgrade came despite the drop in BVPS, which is a measure of the intrinsic value of the company’s assets. New York Mortgage Trust is a real estate investment trust (REIT) that invests in residential and commercial mortgage-backed securities, mortgage servicing rights, and other financial assets. It also originates, acquires, and manages residential and commercial mortgages. The company is based in New York City, and its stock is traded on the New York Stock Exchange. Despite the drop in BVPS, analysts have stated that the negative consequences have already been factored into the rating increase. This is likely due to the fact that the market has already priced in the expected losses associated with its investments. Furthermore, the company has taken steps to strengthen its balance sheet and liquidity position. This includes reducing its leverage levels and cutting its dividend payments.

However, analysts believe that the negative consequences have already been incorporated into their rating and that the company is taking steps to improve its financial situation. This suggests that investors should consider adding New York Mortgage Trust to their portfolio.

Share Price

On Tuesday, NEW YORK MORTGAGE TRUST (NMY) opened at $10.2 and closed at $10.0, down 1.6% from the prior closing price of 10.2. Despite this drop in the book value per share (BVPS) of the company, the shares were upgraded to “buy” from “hold” by analysts at Zacks Investment Research. This upgrade was driven by a number of factors, including the company’s focus on improving its balance sheet, creating more liquidity and reducing debt. The company’s efforts to focus on efficiency and cost savings have allowed it to remain competitive in the industry and maintain its dividend payments. The analysts at Zacks noted that the company’s management team has been able to successfully address the challenges posed by the current market conditions by aggressively pursuing new investments and reallocating capital.

NEW YORK MORTGAGE TRUST has also taken steps to strengthen its origination and servicing capabilities, allowing it to capitalize on growth opportunities in the mortgage market. Overall, despite the drop in BVPS, NEW YORK MORTGAGE TRUST’s stock was upgraded due to the company’s proactive efforts to improve its operations and remain competitive. This upgrade is a positive sign for investors and provides a foundation for further growth. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for NYMT. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for NYMT. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for NYMT. More…

Key Ratios Snapshot

Some of the financial key ratios for NYMT are shown below. More…

Analysis

At GoodWhale, we take a close look at the fundamentals of NEW YORK MORTGAGE TRUST. By examining the company’s Star Chart, we can see that NEW YORK MORTGAGE TRUST is strong in asset, dividend, profitability and weak in growth. We classify NEW YORK MORTGAGE TRUST as a ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividends. As such, NEW YORK MORTGAGE TRUST may be attractive to investors looking for steady and sustained income. Furthermore, the company has an intermediate health score of 5/10 considering its cashflows and debt, indicating that it is likely to safely ride out any crisis without the risk of bankruptcy. More…

Peers

The competition between New York Mortgage Trust Inc and its competitors, Ellington Residential Mortgage REIT, AGNC Investment Corp, and Cherry Hill Mortgage Investment Corp, is intense. Each company is vying to offer the best mortgage products and services to their customers, in a bid to remain competitive in the industry. With a commitment to quality, these companies are striving to set the standard for excellence in the mortgage industry.

– Ellington Residential Mortgage REIT ($NYSE:EARN)

Ellington Residential Mortgage REIT is a publicly traded mortgage real estate investment trust (REIT) based in Old Greenwich, Connecticut. As of 2022, the company has a market capitalization of $92.05 million. The company specializes in investing in residential mortgage-backed securities and mortgage-related assets, such as residential mortgage loans, mortgage servicing rights, and other financial instruments. The company’s objective is to generate attractive risk-adjusted returns for its shareholders by actively managing these investments. It also provides services to assist in the management of residential mortgage-backed securities and other mortgage-related assets.

– AGNC Investment Corp ($NASDAQ:AGNC)

AGNC Investment Corp is a real estate investment trust (REIT) specializing in residential mortgage loans and mortgage-backed securities. As of 2022, the company has a market cap of 5.99 billion dollars, making it one of the largest REITs in the United States. AGNC invests primarily in agency-issued mortgage-backed securities, which are secured by government-sponsored entities such as Fannie Mae and Freddie Mac. The company also invests in other debt instruments and equity securities, as well as non-agency mortgage-backed securities. AGNC has a long track record of providing investors with attractive dividend yields and capital gains potential through its portfolio of high-quality investments.

– Cherry Hill Mortgage Investment Corp ($NYSE:CHMI)

Cherry Hill Mortgage Investment Corp is a real estate investment trust (REIT) that invests in mortgage-backed securities. The company’s market capitalization is 121.95 million as of 2022. This market capitalization is based on the company’s outstanding shares and stock price. Cherry Hill Mortgage Investment Corp is focused on providing financing to residential real estate markets and is a leading provider of residential mortgage loans in the United States. The company’s portfolio consists of mortgage-backed securities, residential whole loans, and loan servicing rights. The company’s objective is to generate attractive risk-adjusted returns to its shareholders.

Summary

Despite this, the stock has been trading at higher prices as investors are viewing this as a short-term issue and expecting the underlying value of the company to remain strong in the long run. This sentiment has been further validated by credit rating agency Moody’s recent upgrade of the company’s credit ratings. The upgrade is based on the company’s solid asset base, conservative portfolio management and healthy liquidity position. Despite the current uncertainty, NYMT remains an attractive investment option for those looking for higher yields in the mortgage REIT space.