tiprankstipranks
Trending News
More News >
Angel Oak Mortgage (AOMR)
NYSE:AOMR
Advertisement

Angel Oak Mortgage (AOMR) AI Stock Analysis

Compare
369 Followers

Top Page

AOMR

Angel Oak Mortgage

(NYSE:AOMR)

Rating:57Neutral
Price Target:
$10.00
▲(0.00% Upside)
Angel Oak Mortgage's overall score is driven by financial instability and technical neutrality, partly balanced by strong valuation metrics and positive corporate actions. The earnings call indicates growth potential, but increased loan delinquencies pose a risk.
Positive Factors
Dividend Yield
Economic NAV is up ~6% YTD to $13.90, indicating limited downside at its current valuation near 0.70x NAV and a 13.5% dividend yield.
Financial Performance
Angel Oak reported distributable EPS of $0.42, above the estimate of $0.27.
Investment Growth
Management sees a healthy new investment pipeline for non-QM loan acquisitions.
Negative Factors
Earnings Report
Distributable EPS of $0.17, below the estimate of $0.27 on realized losses on hedges.
Liquidity Concerns
A yield premium is necessary for AOMR due to its lower stock liquidity and more concentrated model/strategy compared to bigger names.

Angel Oak Mortgage (AOMR) vs. SPDR S&P 500 ETF (SPY)

Angel Oak Mortgage Business Overview & Revenue Model

Company DescriptionAngel Oak Mortgage, Inc. (AOMR) operates in the financial services sector, primarily focusing on providing non-qualified mortgage loans. The company is engaged in acquiring and investing in first lien non-qualified residential mortgage loans and other mortgage-related assets in the U.S. market. Its core services include originating and securitizing mortgage loans, catering mainly to borrowers who may not meet the traditional agency mortgage requirements.
How the Company Makes MoneyAngel Oak Mortgage generates revenue through the interest income earned from its mortgage loan portfolio. The company acquires mortgage loans at a discount and earns a yield spread between the interest paid by borrowers and the cost of funds. Additionally, AOMR benefits from securitization of mortgage loans, which involves packaging loans into securities and selling them to investors, thereby generating income from the sale as well as ongoing servicing fees. Strategic partnerships with mortgage originators and financial institutions enhance its ability to source a diverse range of mortgage loans, contributing to its revenue streams.

Angel Oak Mortgage Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: 6.04%|
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. The company showed strong securitization activity, improved interest income, and reduced operating expenses, which are positive indicators. However, there were concerns over a decline in book value and unrealized losses, which offset some of the gains.
Q2-2025 Updates
Positive Updates
Securitizations and Capital Market Activity
Completed 2 securitizations during the quarter and issued $42.5 million of unsecured debt, which is expected to drive incremental earnings.
Decrease in 90+ Day Delinquency Rates
90+ day delinquency rates decreased at the portfolio-wide level compared to the past 2 quarters, reflecting the effectiveness of credit management.
Interest Income Growth
Interest income increased by 35% and net interest income by 5% compared to the second quarter of 2024.
Operating Expenses Reduction
Operating expenses, excluding securitization costs and stock compensation, were 15% lower than the second quarter of 2024 and 22% lower year-to-date compared to 2024.
Negative Updates
Book Value Decline
GAAP book value per share decreased 3.1% to $10.37 as of June 30, 2025, from $10.70 as of March 31, 2025.
Unrealized Losses
$1.6 million of unrealized loss on securitized and residential loan portfolios, impacting overall financial performance.
Company Guidance
During the Angel Oak Mortgage REIT's Second Quarter 2025 Earnings Conference Call, the company reported several key financial metrics and strategic actions. The quarter was marked by the completion of two securitizations and the issuance of $42.5 million in unsecured debt, which are expected to drive earnings growth. Net interest income grew by 5% compared to Q2 2024, although it contracted slightly from the first quarter due to new unsecured notes. Year-to-date, net interest income rose by 11% compared to the previous year. Operating expenses, excluding securitization and stock compensation costs, decreased by 15% from Q2 2024. The quarter ended with a 3.1% decline in GAAP book value per share to $10.37, while economic book value per share decreased by 3.3% to $12.97. The company reported a GAAP net income of $767,000 ($0.03 per diluted share) and distributable earnings of $2.6 million ($0.11 per diluted share). Additionally, the weighted average coupon on their residential loan portfolio increased to 8.37%, and the company maintained a recourse debt-to-equity ratio of 1.1x. The portfolio's 90+ day delinquency rate improved to 2.35%. Angel Oak announced a $0.32 per share common dividend, payable on August 29, 2025. The company remains focused on leveraging securitization markets and maximizing shareholder returns through strategic capital deployment.

Angel Oak Mortgage Financial Statement Overview

Summary
Angel Oak Mortgage exhibits financial instability with volatility in revenue, high leverage, and concerning negative cash flows. While there are improvements in net profit margins and liquidity, these are overshadowed by the risks.
Income Statement
42
Neutral
Angel Oak Mortgage's income statement shows significant volatility. The company experienced negative revenue growth in 2022 followed by a sharp recovery in 2023, but then zero revenue in 2024, indicating instability in revenue generation. The net profit margin improved in 2024, which is a positive sign, but overall, the margins have been inconsistent over the years.
Balance Sheet
45
Neutral
The balance sheet reveals a high debt-to-equity ratio, indicating potential risk due to substantial leverage. Equity has decreased over time, reducing the equity ratio. However, the company has maintained a reasonable level of cash and short-term investments, which provides some liquidity cushion.
Cash Flow
35
Negative
Angel Oak Mortgage's cash flow statement exhibits significant negative operating and free cash flows in recent years, reflecting potential liquidity challenges. The operating cash flow to net income ratio is negative, showing inefficiencies in converting income into cash. Despite past positive free cash flow, recent trends are concerning.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue93.71M51.46M54.86M-157.95M41.76M10.38M
Gross Profit83.18M51.46M42.49M-162.42M36.38M2.48M
EBITDA112.08M105.51M102.01M-128.27M34.19M8.23M
Net Income36.41M28.75M33.71M-187.83M21.11M736.00K
Balance Sheet
Total Assets2.68B2.27B2.31B2.95B2.58B509.66M
Cash, Cash Equivalents and Short-Term Investments38.70M40.76M41.63M29.27M40.80M43.57M
Total Debt2.11B1.82B1.65B1.64B1.47B81.91M
Total Liabilities2.43B2.03B2.05B2.71B2.09B261.35M
Stockholders Equity251.48M238.97M256.11M236.48M491.39M248.31M
Cash Flow
Free Cash Flow-463.40M-221.43M306.40M-331.13M-1.57B34.41M
Operating Cash Flow-429.14M-221.43M306.40M-331.13M-1.57B34.41M
Investing Cash Flow15.53M120.84M-194.11M664.33M-460.48M-52.44M
Financing Cash Flow414.86M98.99M-107.66M-345.65M2.03B54.80M

Angel Oak Mortgage Technical Analysis

Technical Analysis Sentiment
Positive
Last Price10.00
Price Trends
50DMA
9.39
Positive
100DMA
9.12
Positive
200DMA
9.14
Positive
Market Momentum
MACD
0.10
Negative
RSI
63.97
Neutral
STOCH
89.60
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AOMR, the sentiment is Positive. The current price of 10 is above the 20-day moving average (MA) of 9.39, above the 50-day MA of 9.39, and above the 200-day MA of 9.14, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 63.97 is Neutral, neither overbought nor oversold. The STOCH value of 89.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AOMR.

Angel Oak Mortgage Risk Analysis

Angel Oak Mortgage disclosed 112 risk factors in its most recent earnings report. Angel Oak Mortgage reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Angel Oak Mortgage Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$232.92M8.508.66%10.70%22.45%-44.01%
66
Neutral
$157.06M10.095.71%12.68%-16.74%-32.89%
61
Neutral
kr18.18B19.872.74%2.56%2.27%228.27%
61
Neutral
$263.52M6.0621.74%13.28%25.17%
60
Neutral
$209.96M20.126.89%16.70%271.03%31.81%
57
Neutral
$232.42M6.3214.91%12.80%75.08%-21.03%
48
Neutral
$240.92M-3.30%17.94%-27.60%62.75%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AOMR
Angel Oak Mortgage
10.00
>-0.01
-0.10%
ACRE
Ares Commercial
4.51
-1.42
-23.95%
MITT
AG Mortgage
7.38
1.10
17.52%
EARN
Ellington Residential Mortgage
5.75
-0.13
-2.21%
NREF
NexPoint Real Estate ate Finance
15.06
1.72
12.89%
SEVN
Seven Hills Realty Trust
10.49
-1.74
-14.23%

Angel Oak Mortgage Corporate Events

Financial Disclosures
Angel Oak Mortgage Schedules Q2 2025 Results Call
Neutral
Jul 22, 2025

On July 22, 2025, Angel Oak Mortgage REIT, Inc. announced the release date for its second quarter 2025 financial results and scheduled a conference call for August 5, 2025. This announcement is part of the company’s ongoing efforts to keep stakeholders informed and engaged, reflecting its commitment to transparency and communication in the competitive U.S. mortgage market.

The most recent analyst rating on (AOMR) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Angel Oak Mortgage stock, see the AOMR Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Angel Oak Mortgage Extends Loan Facility with Bank
Positive
Jun 25, 2025

On June 24, 2025, Angel Oak Mortgage REIT, Inc. and its subsidiaries renewed their loan financing facility with Multinational Bank 1, extending the expiration date from September 25, 2025, to December 25, 2025. This renewal, in line with the original Master Repurchase Agreement from April 13, 2022, ensures continued financial support and stability for the company, potentially impacting its operations and stakeholder confidence positively.

The most recent analyst rating on (AOMR) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Angel Oak Mortgage stock, see the AOMR Stock Forecast page.

Executive/Board Changes
Angel Oak Mortgage Appoints New Director Amid Changes
Neutral
Jun 17, 2025

On June 17, 2025, Angel Oak Mortgage REIT, Inc. appointed Tian ce (David) Zhong as a new director following the resignation of a previous board member. This appointment is part of a shareholder rights agreement with Morgan Stanley & Co. LLC, allowing them to designate a nominee to the board. Mr. Zhong, who is not considered independent by NYSE standards, will not receive compensation for his role and has not been assigned to any board committees. This move reflects the company’s ongoing collaboration with significant investors to maintain strategic governance and oversight.

The most recent analyst rating on (AOMR) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Angel Oak Mortgage stock, see the AOMR Stock Forecast page.

Executive/Board Changes
Angel Oak Mortgage Director Resigns, Replacement Announced
Neutral
Jun 4, 2025

On June 4, 2025, Edward M. Cummings announced his resignation from the Board of Directors of Angel Oak Mortgage REIT, Inc., effective June 10, 2025. His resignation is not due to any disagreements with the company’s operations or policies. The vacancy on the Board will be filled by a nominee designated by Morgan Stanley & Co. LLC, as per a shareholder rights agreement.

The most recent analyst rating on (AOMR) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Angel Oak Mortgage stock, see the AOMR Stock Forecast page.

Private Placements and Financing
Angel Oak Mortgage Closes $40M Senior Notes Offering
Positive
May 21, 2025

On May 21, 2025, Angel Oak Mortgage REIT, Inc. successfully closed a public offering of $40 million in senior notes due in 2030, with a 9.750% interest rate. The notes are guaranteed by Angel Oak Mortgage Operating Partnership, LP, and are expected to be listed on the New York Stock Exchange under the symbol ‘AOMD’. This move is expected to strengthen the company’s financial position and potentially enhance its market presence.

The most recent analyst rating on (AOMR) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Angel Oak Mortgage stock, see the AOMR Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Angel Oak Mortgage Announces $40M Senior Notes Offering
Neutral
May 16, 2025

On May 14, 2025, Angel Oak Mortgage REIT, Inc. announced an underwritten public offering of $40 million in 9.750% Senior Notes due 2030, guaranteed by Angel Oak Mortgage Operating Partnership, LP. The company plans to use the estimated net proceeds of $38.2 million for general corporate purposes, including acquiring non-qualified residential mortgage loans, enhancing its market positioning and operational strategy.

The most recent analyst rating on (AOMR) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Angel Oak Mortgage stock, see the AOMR Stock Forecast page.

Shareholder Meetings
Angel Oak Mortgage Holds Annual Stockholders Meeting
Neutral
May 14, 2025

On May 14, 2025, Angel Oak Mortgage REIT, Inc. held its Annual Meeting of Stockholders to elect eight directors and ratify KPMG LLP as the independent accounting firm for 2025. The meeting saw the participation of 15,112,985 shares, establishing a quorum. The stockholders approved the election of directors and ratified KPMG LLP’s appointment, reflecting continued confidence in the company’s governance and financial oversight.

The most recent analyst rating on (AOMR) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Angel Oak Mortgage stock, see the AOMR Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 05, 2025