This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
|Zacks Rank||Definition||Annualized Return|
Zacks Rank Education - Learn more about the Zacks Rank
Zacks Rank Home - All Zacks Rank resources in one place
Zacks Premium - The only way to get access to the Zacks Rank
AG Mortgage Investment Trust
by Zacks Equity ResearchDecember 12, 2012 | Comments : 0 Recommended this article: (0)
This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at firstname.lastname@example.org or call 800-767-3771 ext. 9339.
Strong Third Quarter
On November 7, AG Mortgage Investment Trust reported third-quarter core earnings of $1.03 per share, surpassing the Zacks Consensus Estimate by 33.8%.
Net interest income of $24.1 million was derived from an investment portfolio of $4.9 billion, which had a weighted average yield of 3.45%. Weighted average cost of funds was 1.04%, resulting in a net interest margin of 2.41% for the quarter. Net book value per share was $23.71 at the end of the quarter.
The company also increased its quarterly dividend by a whopping 92.5% year over year to 77 cents, which affirms an astounding yield of 12.3%.
Rise in Earnings Estimate Revisions
Over the past 30 days, the Zacks Consensus Estimate for 2012 has increased 5.1% to $3.32, while the Zacks Consensus Estimate for 2013 is up 1.8% to $3.41 over the same time.
AG Mortgage Investment Trust seems to be undervalued with a low forward P/E multiple of 7.54 and a P/B multiple of 1.05 (a P/E ratio under 15.0 and a P/B ratio below 3.0 generally indicate value). The year-to-date return of AG Mortgage Investment Trust is noteworthy at 39.3%, compared to an S&P 500 tally of 11.1%.
Moreover, the company has a 1-year return on equity (ROE) of 14.3%, higher than its peer group average of 7.9%. The stock is currently trading above its 50 day and 200 day moving averages of $23.74 and $22.82, respectively.
Based in New York, AG Mortgage Investment Trust manages and invests in a diversified portfolio of residential mortgage assets, and other real estate-related securities and financial assets. The company primarily invests in agency residential mortgage-backed securities (RMBS), where payments are guaranteed by the U.S. government or government-owned entities. At the same time, the company also invests in fixed- and floating-rate non-agency RMBS that do not possess such guaranteed payments.
In addition, AG Mortgage Investment Trust invests in fixed- and floating-rate commercial mortgage-backed securities; residential mortgage loans secured by residential real property; first or second lien loans; mezzanine financing secured by interests in commercial real estate; and bridge loans. The company currently has a market cap of $574.5 million.
Want More of Our Best Recommendations?
Zacks' Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Then each week he hand-selects the most compelling trades and serves them up to you in a new program called Zacks Confidential.
Please login to Zacks.com or register to post a comment.