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AG Mortgage (MITT)
NYSE:MITT
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AG Mortgage
(NYSE:MITT)
Rating:67Neutral
Price Target:
$7.50
▼(-2.98% Downside)
AG Mortgage (MITT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$234.82M
Dividend Yield10.22%
Average Volume (3M)176.41K
Price to Earnings (P/E)8.6
Beta (1Y)0.85
Revenue Growth22.45%
EPS Growth-44.01%
CountryUS
EmployeesN/A
SectorReal Estate
Sector Strength54
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.18
Shares Outstanding31,732,431
10 Day Avg. Volume252,859
30 Day Avg. Volume176,415
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap30.75
Enterprise Value/Revenue106.79
Enterprise Value/Gross Profit106.79
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.44Price Target Upside9.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
AG Mortgage Business Overview & Revenue Model
Company DescriptionAG Mortgage Investment Trust, Inc. (MITT) is a real estate investment trust (REIT) that focuses on investing in, acquiring, and managing a diversified portfolio of residential mortgage assets, other real estate-related securities, and financial assets. The company is primarily involved in the secondary mortgage market, where it seeks to generate returns through a combination of current income and capital appreciation.
How the Company Makes MoneyAG Mortgage makes money primarily through the acquisition and management of residential mortgage-backed securities (RMBS), credit investments such as non-agency RMBS, asset-backed securities (ABS), and commercial mortgage-backed securities (CMBS). The company earns revenue from the interest income on these securities, as well as from the appreciation in the value of its asset holdings. Additionally, AG Mortgage generates income through its strategic partnerships and financing arrangements, which allow it to leverage its portfolio to maximize returns. The company also benefits from its expertise in asset management, which helps optimize the performance and risk profile of its investments.
AG Mortgage Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q2-2025)
| % Change Since: 2.25%|
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture for AG Mortgage Investment Trust. While there were strategic advancements such as the acquisition of additional Arc Home ownership and successful refinancing efforts, the company faced challenges with a decrease in book value, net interest income, and a GAAP net loss. The increase in dividends and securitization activities were positive, but offset by other financial difficulties.Q2-2025 Updates
Positive Updates
Increased Dividend
AG Mortgage Investment Trust increased its common dividend by 5% or $0.01 per share.
Strategic Acquisition of Arc Home
MITT acquired an additional 21.4% of Arc Home, potentially providing meaningful earnings accretion in future years.
Successful Securitizations
Completed two securitizations during the quarter, with additional securitizations planned, indicating strong pipeline and growth prospects.
Refinancing for Cost Savings
Refinanced high-cost debt, reducing the cost of capital by over 500 basis points, freeing up $40 million for redeployment.
Negative Updates
Book Value Decline
Book value declined by 2.4% from $10.65 to $10.39, attributed to market volatility and upfront transaction expenses.
Decrease in Net Interest Income
Net interest income was down $1.1 million or 6% due to certain commercial loans being placed on nonaccrual.
Challenges with Commercial Loans
Certain commercial loans matured and were placed on nonaccrual, impacting earnings available for distribution.
GAAP Net Loss
Reported a GAAP net loss available to common shareholders of $1.4 million or $0.05 per share.
Company Guidance
During the second quarter of 2025, AG Mortgage Investment Trust, Inc. showcased its core business strategy through a modest 2.4% book value decline from $10.65 to $10.39 while increasing its common dividend by 5% or $0.01 per share, resulting in a breakeven quarterly economic return on equity amidst market volatility. Despite a reported GAAP net loss of $1.4 million or $0.05 per share, the company maintained steady net interest income and low economic leverage of 1.3 turns. The acquisition of an additional 21.4% stake in Arc Home, increasing ownership to 66%, is expected to be accretive to earnings in 2026. The company also completed two securitizations, refinanced high-cost debt, and maintained a low economic leverage ratio. These efforts, along with new strategic transactions and securitizations, are expected to enhance shareholder value and future earnings.AG Mortgage Financial Statement Overview
Summary
AG Mortgage shows promising revenue growth and profitability, with improved debt management enhancing financial stability. Cash flow generation is strong, but high capital expenditures warrant attention. While the company demonstrates resilience, careful monitoring of operational efficiency and liquidity is recommended to mitigate potential risks.Income Statement
AG Mortgage has demonstrated significant revenue growth from 2022 to 2023, with total revenue increasing from $218,000 to $63.7 million. The net profit margin for 2023 is high at approximately 84.6%, indicating strong profitability. However, the EBIT margin is unavailable for 2023, and the EBITDA margin has shown volatility in previous years, reflecting potential instability in operational efficiency.65
Positive
Balance Sheet
The company's debt-to-equity ratio improved significantly from 2022 to 2023 as total debt was reduced, enhancing financial stability. The equity ratio is relatively stable, providing a solid foundation. However, the return on equity (ROE) has shown fluctuations due to varying net income, which may pose risks to sustained shareholder value.60
Neutral
Cash Flow
AG Mortgage's operating cash flow has improved significantly in 2023, supporting a strong free cash flow position. The company exhibits a high free cash flow to net income ratio, indicating efficient cash generation relative to earnings. However, the investing cash flow is negative, suggesting high capital expenditures that may impact future liquidity.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 67.63M | 75.32M | 63.66M | 218.00K | 99.80M | -390.36M |
| Gross Profit | 67.63M | 75.32M | 46.14M | -17.08M | 86.44M | -391.78M |
| EBITDA | 0.00 | 0.00 | 248.56M | 52.94M | 0.00 | 0.00 |
| Net Income | 46.32M | 55.74M | 53.78M | -53.10M | 104.19M | -420.92M |
Balance Sheet | ||||||
| Total Assets | 7.32B | 6.91B | 6.13B | 4.37B | 3.36B | 1.40B |
| Cash, Cash Equivalents and Short-Term Investments | 115.55M | 118.66M | 111.53M | 155.69M | 68.08M | 47.93M |
| Total Debt | 6.74B | 6.33B | 5.56B | 3.88B | 2.78B | 418.29M |
| Total Liabilities | 6.78B | 6.37B | 5.60B | 3.91B | 2.78B | 990.34M |
| Stockholders Equity | 543.87M | 543.42M | 528.37M | 462.80M | 570.38M | 409.70M |
Cash Flow | ||||||
| Free Cash Flow | 55.86M | 55.84M | 28.13M | 22.52M | 26.30M | 4.16M |
| Operating Cash Flow | 55.86M | 55.84M | 28.13M | 22.52M | 26.30M | 4.16M |
| Investing Cash Flow | -779.63M | -713.13M | -433.50M | -1.49B | -1.90B | 2.19B |
| Financing Cash Flow | 736.34M | 670.29M | 432.14M | 1.47B | 1.91B | -2.26B |
AG Mortgage Technical Analysis
Positive
7.73
Price Trends
7.48
Positive
7.04
Positive
6.80
Positive
Market Momentum
-0.03
Negative
58.47
Neutral
74.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MITT, the sentiment is Positive. The current price of 7.73 is above the 20-day moving average (MA) of 7.52, above the 50-day MA of 7.48, and above the 200-day MA of 6.80, indicating a bullish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 58.47 is Neutral, neither overbought nor oversold. The STOCH value of 74.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MITT.
AG Mortgage Risk Analysis
AG Mortgage disclosed 66 risk factors in its most recent earnings report. AG 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
AG Mortgage Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $234.82M | 8.57 | 8.66% | 10.22% | 22.45% | -44.01% | |
66 Neutral | $161.39M | 10.36 | 5.71% | 12.31% | -16.74% | -32.89% | |
65 Neutral | £935.69M | 14.20 | 6.19% | 6.63% | 15.71% | 68.63% | |
58 Neutral | $112.53M | 11.84 | 6.01% | 17.73% | -24.12% | -47.91% | |
57 Neutral | $217.93M | 5.93 | 14.91% | 13.96% | 75.08% | -21.03% | |
54 Neutral | $212.59M | 20.12 | -2.82% | 16.67% | 373.24% | -143.31% | |
48 Neutral | $242.02M | ― | -3.30% | 17.66% | -27.60% | 62.75% |
* Real Estate Sector Average
Performance Comparison
MITT
AG Mortgage
7.73
1.64
26.93%
ACRE
Ares Commercial
4.53
-1.38
-23.35%
EARN
Ellington Residential Mortgage
5.76
-0.21
-3.52%
LFT
Lument Finance Trust
2.20
0.07
3.29%
SEVN
Seven Hills Realty Trust
10.95
-0.97
-8.14%
AOMR
Angel Oak Mortgage
9.54
-0.98
-9.32%
AG Mortgage Corporate Events
Private Placements and Financing
AG Mortgage Updates Equity Distribution Agreements
Neutral
Nov 6, 2024
AG Mortgage Investment Trust, Inc. has entered into new Equity Distribution Agreements with several sales agents to potentially offer up to $75 million in common stock. The proceeds are intended for general corporate purposes, including acquiring residential investments. Sales can occur through market offerings on the NYSE and compensate agents with up to 2% of the gross sales price. The company also terminated agreements with previous sales agents, effective November 6, 2024.
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.