Maxim Group analyst Michael Diana has reiterated their bullish stance on NYMT stock, giving a Buy rating yesterday.
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Michael Diana has given his Buy rating due to a combination of factors that highlight the financial stability and growth potential of New York Mortgage Trust (NYMT). The company’s core earnings, referred to as Earnings Available for Distribution (EAD), cover the dividend, which yields a substantial 12.6%. This coverage indicates a sustainable dividend, further supported by NYMT’s strategic liquidity management and focus on recurring earnings. The company’s book value per share has also seen a positive uptick, reinforcing its financial health.
Additionally, NYMT’s strategic shift towards Agency residential mortgage securities has improved its recurring net interest income, enhancing its earnings outlook. The company’s balance sheet shows a manageable leverage ratio, and it possesses significant liquidity reserves, positioning it well to capitalize on future opportunities. Michael Diana has raised the price target for NYMT to $8.00, reflecting confidence in the company’s ability to deliver a strong total return, driven by both dividend yield and stock price appreciation.
According to TipRanks, Diana is a 3-star analyst with an average return of 1.2% and a 50.60% success rate. Diana covers the Financial sector, focusing on stocks such as First Savings Financial Group, Horizon Technology, and Enova International.
In another report released yesterday, B.Riley Financial also maintained a Buy rating on the stock with a $9.00 price target.