Latest news with #AngelOakMortgageREIT

Business Wire

05-05-2025

Business
Business Wire

Angel Oak Mortgage REIT, Inc. Reports First Quarter 2025 Financial Results

ATLANTA--(BUSINESS WIRE)-- Angel Oak Mortgage REIT, Inc. (NYSE: AOMR) (the 'Company,' 'we,' and 'our'), a leading real estate finance company focused on acquiring and investing in first lien non-QM loans and other mortgage-related assets in the U.S. mortgage market, today reported financial results for the quarter ended March 31, 2025. First Quarter 2025 Highlights Q1 2025 GAAP net income of $20.5 million, or $0.87 per diluted share of common stock. Q1 2025 net interest income of $10.1 million demonstrates an increase of 17.6% versus Q1 2024 net interest income of $8.6 million and an increase of 2.3% versus Q4 2024 net interest income. Q1 2025 GAAP book value of $10.70 per share and economic book value of $13.41 per share, increases of 5.2% and 2.4%, respectively, compared to the end of 2024. Q1 2025 Distributable Earnings of $4.1 million, or $0.17 per diluted share of common stock. Declared a dividend of $0.32 per share of common stock, which will be paid on May 30, 2025, to common stockholders of record as of May 22, 2025. Sreeni Prabhu, Chief Executive Officer and President of Angel Oak Mortgage REIT, Inc., said "We are proud to have achieved continued net interest income expansion in the first quarter of this year, marking approximately 18% growth compared to the first quarter of 2024 and over 2% growth compared to the fourth quarter of 2024. Our earnings growth was buoyed by the acquisition of nearly $260 million of high-quality non-QM loan purchases throughout the first quarter along with continued maintenance of our operating expense savings. Despite recent volatility caused by broad uncertainty around tariffs, we look to continue expanding earnings through additional loan purchases with the capital made available by our post-quarter end securitization. And, as always, we will remain committed to growing long-term shareholder value through disciplined risk management, securitization execution, and strategic capital deployment.' Portfolio and Investment Activity Following quarter end, in April 2025, the Company executed the AOMT 2025-4 securitization as the sole contributor of loans. The Company contributed loans with a scheduled unpaid principal balance of approximately $284.3 million and a 7.50% weighted average coupon. This securitization reduced the Company's debt by approximately $242.4 million and released cash of $24.7 million to the Company, which was used for new loan purchases and operational purposes, including paying down a portion of repurchase debt obligation on our retained bond positions, and general corporate purposes. During the quarter, the Company purchased $259.0 million of newly-originated, current market coupon non-QM residential mortgage loans, with a weighted average coupon of 7.67%, weighted average loan-to-value ratio ('LTV') of 70.0% and weighted average credit score of 751. As of March 31, 2025, the weighted average coupon of our residential whole loans portfolio was 7.55%, marking a 44 basis point increase compared to March 31, 2024. Capital Markets Activity As of March 31, 2025, the Company was a party to three loan financing lines which permit borrowings in an aggregate amount of up to $1.1 billion, of which approximately $360 million is drawn, leaving capacity of approximately $690 million for new loan purchases. Balance Sheet Target assets totaled $2.5 billion as of March 31, 2025. The Company held residential mortgage whole loans with fair value of $439.5 million as of March 31, 2025. As of March 31, 2025, the Company's recourse debt to equity ratio was approximately 2.3x. Subsequent to quarter end, the Company used the proceeds of the AOMT 2025-4 securitization to pay down $242.4 million of debt and replaced it with non-recourse leverage, reducing the Company's recourse debt to equity ratio to approximately 1.3x. Dividend On May 5, 2025, the Company declared a dividend of $0.32 per share of common stock, which will be paid on May 30, 2025, to common stockholders of record as of May 22, 2025. Conference Call and Webcast Information The Company will host a live conference call and webcast today, May 5, 2025 at 8:30 a.m. Eastern time. To listen to the live webcast, go to the Investors section of the Company's website at at least 15 minutes prior to the scheduled start time in order to register and install any necessary audio software. To Participate in the Telephone Conference Call: Dial in at least 15 minutes prior to start time. Domestic: 1-844-826-3033 International: 1-412-317-5185 Conference Call Playback: Domestic: 1-844-512-2921 International: 1-412-317-6671 Pass code: 10198623 The playback can be accessed through May 19, 2025. Non-GAAP Metrics Distributable Earnings is a non‑GAAP measure and is defined as net income (loss) allocable to common stockholders as calculated in accordance with generally accepted accounting principles in the United States of America ('GAAP'), excluding (1) unrealized gains and losses on our aggregate portfolio, (2) impairment losses, (3) extinguishment of debt, (4) non-cash equity compensation expense, (5) the incentive fee earned by Falcons I, LLC, our external manager (our 'Manager'), (6) realized gains or losses on swap terminations and (7) certain other nonrecurring gains or losses. We believe that the presentation of Distributable Earnings provides investors with a useful measure to facilitate comparisons of financial performance among our real estate investment trust ('REIT') peers, but has important limitations. We believe Distributable Earnings as described above helps evaluate our financial performance without the impact of certain transactions but is of limited usefulness as an analytical tool. Therefore, Distributable Earnings should not be viewed in isolation and is not a substitute for net income computed in accordance with GAAP. Our methodology for calculating Distributable Earnings may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our Distributable Earnings may not be comparable to similar measures presented by other REITs. Distributable Earnings Return on Average Equity is a non-GAAP measure and is defined as annual or annualized Distributable Earnings divided by average total stockholders' equity. We believe that the presentation of Distributable Earnings Return on Average Equity provides investors with a useful measure to facilitate comparisons of financial performance among our REIT peers, but has important limitations. Additionally, we believe Distributable Earnings Return on Average Equity provides investors with additional detail on the Distributable Earnings generated by our invested equity capital. We believe Distributable Earnings Return on Average Equity as described above helps evaluate our financial performance without the impact of certain transactions but is of limited usefulness as an analytical tool. Therefore, Distributable Earnings Return on Average Equity should not be viewed in isolation and is not a substitute for net income computed in accordance with GAAP. Our methodology for calculating Distributable Earnings Return on Average Equity may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our Distributable Earnings Return on Average Equity may not be comparable to similar measures presented by other REITs. Economic book value is a non-GAAP financial measure of our financial position. To calculate our economic book value, the portions of our non-recourse financing obligation held at amortized cost are adjusted to fair value. These adjustments are also reflected in our end of period total stockholders' equity. Management considers economic book value to provide investors with a useful supplemental measure to evaluate our financial position as it reflects the impact of fair value changes for our legally held retained bonds, irrespective of the accounting model applied for GAAP reporting purposes. Economic book value does not represent and should not be considered as a substitute for book value per share of common stock or stockholders' equity, as determined in accordance with GAAP, and our calculation of this measure may not be comparable to similarly titled measures reported by other companies. Forward-Looking Statements This press release contains certain forward-looking statements that are subject to various risks and uncertainties, including, without limitation, statements relating to the performance of the Company's investments. Forward-looking statements are generally identifiable by use of forward-looking terminology such as 'may,' 'will,' 'should,' 'potential,' 'intend,' 'expect,' 'endeavor,' 'seek,' 'anticipate,' 'estimate,' 'believe,' 'could,' 'project,' 'predict,' 'continue,' or by the negative of these words and phrases or other similar words or expressions. Forward-looking statements are based on certain assumptions, discuss future expectations, describe existing or future plans and strategies, contain projections of results of operations, liquidity and/or financial condition, or state other forward-looking information. The Company's ability to predict future events or conditions or their impact or the actual effect of existing or future plans or strategies is inherently uncertain. Although the Company believes that such forward-looking statements are based on reasonable assumptions, actual results and performance in the future could differ materially from those set forth in or implied by such forward-looking statements. You are cautioned not to place undue reliance on these forward‐looking statements, which reflect the Company's views only as of the date of this press release. Additional information concerning factors that could cause actual results and performance to differ materially from these forward-looking statements is contained from time to time in the Company's filings with the Securities and Exchange Commission. Except as required by applicable law, neither the Company nor any other person assumes responsibility for the accuracy and completeness of the forward‐looking statements. The Company does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise. About Angel Oak Mortgage REIT, Inc. Angel Oak Mortgage REIT, Inc. is a real estate finance company focused on acquiring and investing in first lien non-QM loans and other mortgage-related assets in the U.S. mortgage market. The Company's objective is to generate attractive risk-adjusted returns for its stockholders through cash distributions and capital appreciation across interest rate and credit cycles. The Company is externally managed and advised by an affiliate of Angel Oak Capital Advisors, LLC, which, collectively with its affiliates, is a leading alternative credit manager with market leadership in mortgage credit that includes asset management, lending, and capital markets. Additional information about the Company is available at Angel Oak Mortgage REIT, Inc. Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except for share and per share data) As of: December 31, 2024 ASSETS Residential mortgage loans - at fair value $ 439,460 $ 183,064 Residential mortgage loans in securitization trusts - at fair value 1,672,189 1,696,995 RMBS - at fair value 398,272 300,243 U.S. Treasury securities - at fair value 74,959 — Cash and cash equivalents 38,696 40,762 Restricted cash 4,774 2,131 Principal and interest receivable 9,823 8,141 TBA derivatives and interest rate futures derivatives - at fair value 1,421 1,515 Other assets 36,941 36,918 Total assets $ 2,676,535 $ 2,269,769 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Notes payable $ 360,470 $ 129,459 Non-recourse securitization obligation, collateralized by residential mortgage loans in securitization trusts (see Note 2) 1,556,075 1,593,612 Securities sold under agreements to repurchase 148,467 50,555 Interest rate futures derivatives - at fair value 947 — Due to broker 302,619 201,994 Senior unsecured notes 47,865 47,740 Accrued expenses 2,539 2,291 Accrued expenses payable to affiliate 248 766 Interest payable 1,865 934 Income taxes payable 2,785 2,785 Management fee payable to affiliate 1,175 666 Total liabilities $ 2,425,055 $ 2,030,802 STOCKHOLDERS' EQUITY Common stock, $0.01 par value. As of March 31, 2025: 350,000,000 shares authorized, 23,500,175 shares issued and outstanding. As of December 31, 2024: 350,000,000 shares authorized, 23,500,175 shares issued and outstanding. $ 234 $ 234 Additional paid-in capital 461,294 461,057 Accumulated other comprehensive income (loss) (4,170 ) (3,475 ) Retained earnings (deficit) (205,878 ) (218,849 ) Total stockholders' equity $ 251,480 $ 238,967 Total liabilities and stockholders' equity $ 2,676,535 $ 2,269,769 Expand Angel Oak Mortgage REIT, Inc. Reconciliation of Net Income (Loss) to Distributable Earnings and Distributable Earnings Return on Average Equity (Unaudited) Three Months Ended March 31, 2025 March 31, 2024 (in thousands) Net income (loss) allocable to common stockholders $ 20,531 $ 12,874 Adjustments: Net unrealized (gains) losses on trading securities 1,032 1 Net unrealized (gains) losses on derivatives 1,042 (445 ) Net unrealized (gains) losses on residential loans in securitization trusts and non-recourse securitization obligation (15,657 ) (5,147 ) Net unrealized (gains) losses on residential loans (3,041 ) (5,071 ) Net unrealized (gains) losses on commercial loans — (22 ) Stock compensation 237 630 Distributable Earnings $ 4,144 $ 2,820 Expand Three Months Ended March 31, 2025 March 31, 2024 ($ in thousands) Annualized Distributable Earnings $ 16,576 $ 11,280 Average total stockholders' equity 252,033 259,715 Distributable Earnings Return on Average Equity 6.6 % 4.3 % Expand

Seeking at Least 14% Dividend Yield? Analysts Suggest 2 Dividend Stocks to Buy

Yahoo

28-04-2025

Business
Yahoo

Seeking at Least 14% Dividend Yield? Analysts Suggest 2 Dividend Stocks to Buy

This month started with President Trump's tariff announcement sparking worries about trade wars, a weak dollar, and a possible recession. However, since the April 8 low, the S&P 500 has staged a rally, climbing 11%, after the Trump Administration signaled its willingness to de-escalate the tariff competition, and Beijing responded in kind. Add in a Q1 earnings season delivering more upside surprises than expected, and suddenly, optimism is making a comeback. Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. It's still too early to call it a full recovery, but if momentum holds, this could turn into a self-sustaining rally, which will offer plenty of opportunities for investors to maximize their income. One popular way of boosting portfolio income, whether stocks go up or down, is investing in dividend stocks. The best dividend stock offers a combination of reliable payments, high yields, and share price growth – sound attributes for any income stream. Wall Street analysts are on board, suggesting two strong dividend stocks with yields north of 14%. According to the TipRanks database, both stocks also offer a solid double-digit upside potential over the next year. Let's dive in and take a closer look. Angel Oak Mortgage (AOMR) The first stock we'll look at is Angel Oak Mortgage, a real estate investment trust (REIT), whose main business thrust is in the acquisition of first-lien non-QM loans and other mortgage-related assets from the U.S. mortgage market. Through these investments, Angel Oak has built and maintains a portfolio capable of generating attractive risk-adjusted returns for its shareholders, returns that are realized through cash distributions – dividends – combined with capital appreciation. The company's key strength is its ability to maintain these returns across interest rate and credit cycles. Angel Oak is an externally managed REIT, and is affiliated with the larger company Angel Oak Capital Advisors LLC, an alternative credit manager that counts a vertically integrated mortgage origination platform among its subsidiary assets. Through this connection, Angel Oak Mortgage REIT has connections to all aspects of the mortgage business, from sourcing and acquiring loans, to allocating assets and managing the portfolio. The connection with Angel Oak Capital Advisors provides a key advantage for the mortgage REIT. As noted, Angel Oak Mortgage REIT is committed to strong capital returns, particularly to the dividend. The company last declared the dividend payment on February 6 of this year and paid it out on February 28, at a rate of 32 cents per common share. At that rate, the dividend annualizes to $1.28 per share and gives a powerful yield of 15%. This most recent declaration marked the 10th quarter in a row for the 32-cent dividend payment. Angel Oak supports its dividend with sound financial results. The company's last release covered 4Q24, and in that report it showed a top line, the net interest income, of $9.9 million. This was up 20% year-over-year and was in line with the market's expectations. At the bottom line, the company reported a Distributable Earnings of 42 cents — 16 cents per share better than the forecast and more than enough to fully cover the dividend. For B. Riley analyst Randy Binner the key points here are Angel Oak's high dividend yield and the overall portfolio quality. He writes, 'The dividend yield, plus our implied return to target, sets up a favorable risk-reward in our view. We forecast another good quarter of NII generation and will look for updates on non-QM growth opportunities in light of potential changes at the GSEs. 10-yr Treasury yields moved from 379bps to 457bps in 4Q24, lowering economic book value from $14.02 to $13.10 at YE24. Given that rates moved lower in 1Q25 and the 10-year ended at 421bps, we expect to see some recovery in BVPS…' 'We believe the portfolio has prepayment/refi protection as mortgage rates in the underlying portfolio are weighted towards higher coupons. Delinquency trends were favorable in 4Q24, and we expect that trend to continue in 1Q25, given our view that residential mortgage is among the better credit risk areas, as other areas have seen spread widening,' the analyst added. These comments support Binner's Buy rating on the stock, while his $12 price target points toward a potential one-year upside of 41%. Together with the dividend yield, the total return on this stock can reach as high as 56% for the coming year. (To watch Binner's track record, click here) Overall, there are 3 recent analyst reviews on record for Angel Oak Mortgage REIT, and they are unanimously positive for a Strong Buy consensus rating. The shares are currently priced at $8.48 and their $12.17 average price target implies a 43% upside by this time next year. (See AOMR stock forecast) TXO Energy Partners (TXO) Next on our list is an energy company, TXO Energy Partners. Like mortgage REITs, energy production firms like TXO have a reputation for delivering strong dividends. TXO earns the income that supports its dividends from the solid hydrocarbon acreage positions in several of the nation's best energy-producing regions. These include the Williston Basin of North Dakota and Montana; the San Juan Basin, straddling the Four Corners; and the famous Permian Basin along the Texas–New Mexico border. The company prioritizes its acreage holdings by several factors, including low geologic risk, low decline rates, and high recoveries, all relative to drilling and completion costs. This strategy has led TXO to build up a portfolio of profitable plays in both oil and natural gas, capable of generating benefits for the company and returns for shareholders. Company management has focused its land buys to acquire proven oil and gas production locations, in areas with long and well-known records of hydrocarbon generation. The goal is to build an energy portfolio that is more predictable and reliable than the higher-risk unconventional recovery plays. On the financial side, TXO realized $109.3 million in net cash provided by operating activities during calendar year 2024. That top-line figure provided a solid sum of cash available for distribution: $79.1 million. The total cash available for distribution was more than double the equivalent figure reported at the end of 2023. Distributions mean dividends, and TXO's last declaration, made on March 4, was for a payment of 61 cents per common share. The dividend was paid out on March 21, and the $2.44 annualized rate provided a yield of 14.5%. This last declaration marked the 8th consecutive quarter that TXO has paid out a common share dividend. TXO has caught the attention of Stifel analyst Selman Akyol, who sees the solid capital return and low-cost business model as attractive attributes for the company. 'We believe TXO Partners offers investors an attractive investment opportunity given its return of capital framework, which is supported by low production decline rates, low leverage and manageable capex levels. Furthermore, we believe each basin TXO is in presents its own unique growth opportunity set. Finally, the management team is well experienced and has a track record of extracting incremental value out of assets, and applying its skill set to potential acquisition targets… TXO aims to payout 100% of its cash available for distribution, which currently is resulting in a 4Q annualized yield of 14.4%. While distributions are variable and directly impacted by commodity prices, we believe low production decline rates are supportive of a higher payout,' Akyol opined. Akyol quantifies his stance on TXO with a Buy rating, and he gives the stock a $20 price target that suggests a gain of 18% on the one-year horizon. Add in the dividend yield, and this stock can bring a one-year return of 32.5%. (To watch Akyol's track record, click here) While there are only 2 recent reviews on record here, they are both positive – giving TXO a Moderate Buy consensus rating. The stock has a current selling price of $16.95, and its average target price of $21.50 implies a one-year upside potential of ~27%. (See TXO stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. Disclaimer & DisclosureReport an Issue Sign in to access your portfolio

Business Insider

27-04-2025

Business
Business Insider

Seeking at Least 14% Dividend Yield? Analysts Suggest 2 Dividend Stocks to Buy

This month started with President Trump's tariff announcement sparking worries about trade wars, a weak dollar, and a possible recession. However, since the April 8 low, the S&P 500 has staged a rally, climbing 11%, after the Trump Administration signaled its willingness to de-escalate the tariff competition, and Beijing responded in kind. Add in a Q1 earnings season delivering more upside surprises than expected, and suddenly, optimism is making a comeback. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. It's still too early to call it a full recovery, but if momentum holds, this could turn into a self-sustaining rally, which will offer plenty of opportunities for investors to maximize their income. One popular way of boosting portfolio income, whether stocks go up or down, is investing in dividend stocks. The best dividend stock offers a combination of reliable payments, high yields, and share price growth – sound attributes for any income stream. Wall Street analysts are on board, suggesting two strong dividend stocks with yields north of 14%. According to the TipRanks database, both stocks also offer a solid double-digit upside potential over the next year. Let's dive in and take a closer look. Angel Oak Mortgage (AOMR) The first stock we'll look at is Angel Oak Mortgage, a real estate investment trust (REIT), whose main business thrust is in the acquisition of first-lien non-QM loans and other mortgage-related assets from the U.S. mortgage market. Through these investments, Angel Oak has built and maintains a portfolio capable of generating attractive risk-adjusted returns for its shareholders, returns that are realized through cash distributions – dividends – combined with capital appreciation. The company's key strength is its ability to maintain these returns across interest rate and credit cycles. Angel Oak is an externally managed REIT, and is affiliated with the larger company Angel Oak Capital Advisors LLC, an alternative credit manager that counts a vertically integrated mortgage origination platform among its subsidiary assets. Through this connection, Angel Oak Mortgage REIT has connections to all aspects of the mortgage business, from sourcing and acquiring loans, to allocating assets and managing the portfolio. The connection with Angel Oak Capital Advisors provides a key advantage for the mortgage REIT. As noted, Angel Oak Mortgage REIT is committed to strong capital returns, particularly to the dividend. The company last declared the dividend payment on February 6 of this year and paid it out on February 28, at a rate of 32 cents per common share. At that rate, the dividend annualizes to $1.28 per share and gives a powerful yield of 15%. This most recent declaration marked the 10th quarter in a row for the 32-cent dividend payment. Angel Oak supports its dividend with sound financial results. The company's last release covered 4Q24, and in that report it showed a top line, the net interest income, of $9.9 million. This was up 20% year-over-year and was in line with the market's expectations. At the bottom line, the company reported a Distributable Earnings of 42 cents — 16 cents per share better than the forecast and more than enough to fully cover the dividend. For B. Riley analyst Randy Binner the key points here are Angel Oak's high dividend yield and the overall portfolio quality. He writes, 'The dividend yield, plus our implied return to target, sets up a favorable risk-reward in our view. We forecast another good quarter of NII generation and will look for updates on non-QM growth opportunities in light of potential changes at the GSEs. 10-yr Treasury yields moved from 379bps to 457bps in 4Q24, lowering economic book value from $14.02 to $13.10 at YE24. Given that rates moved lower in 1Q25 and the 10-year ended at 421bps, we expect to see some recovery in BVPS…' 'We believe the portfolio has prepayment/refi protection as mortgage rates in the underlying portfolio are weighted towards higher coupons. Delinquency trends were favorable in 4Q24, and we expect that trend to continue in 1Q25, given our view that residential mortgage is among the better credit risk areas, as other areas have seen spread widening,' the analyst added. These comments support Binner's Buy rating on the stock, while his $12 price target points toward a potential one-year upside of 41%. Together with the dividend yield, the total return on this stock can reach as high as 56% for the coming year. (To watch Binner's track record, click here) Overall, there are 3 recent analyst reviews on record for Angel Oak Mortgage REIT, and they are unanimously positive for a Strong Buy consensus rating. The shares are currently priced at $8.48 and their $12.17 average price target implies a 43% upside by this time next year. (See AOMR stock forecast) TXO Energy Partners (TXO) Next on our list is an energy company, TXO Energy Partners. Like mortgage REITs, energy production firms like TXO have a reputation for delivering strong dividends. TXO earns the income that supports its dividends from the solid hydrocarbon acreage positions in several of the nation's best energy-producing regions. These include the Williston Basin of North Dakota and Montana; the San Juan Basin, straddling the Four Corners; and the famous Permian Basin along the Texas–New Mexico border. The company prioritizes its acreage holdings by several factors, including low geologic risk, low decline rates, and high recoveries, all relative to drilling and completion costs. This strategy has led TXO to build up a portfolio of profitable plays in both oil and natural gas, capable of generating benefits for the company and returns for shareholders. Company management has focused its land buys to acquire proven oil and gas production locations, in areas with long and well-known records of hydrocarbon generation. The goal is to build an energy portfolio that is more predictable and reliable than the higher-risk unconventional recovery plays. On the financial side, TXO realized $109.3 million in net cash provided by operating activities during calendar year 2024. That top-line figure provided a solid sum of cash available for distribution: $79.1 million. The total cash available for distribution was more than double the equivalent figure reported at the end of 2023. Distributions mean dividends, and TXO's last declaration, made on March 4, was for a payment of 61 cents per common share. The dividend was paid out on March 21, and the $2.44 annualized rate provided a yield of 14.5%. This last declaration marked the 8th consecutive quarter that TXO has paid out a common share dividend. TXO has caught the attention of Stifel analyst Selman Akyol, who sees the solid capital return and low-cost business model as attractive attributes for the company. 'We believe TXO Partners offers investors an attractive investment opportunity given its return of capital framework, which is supported by low production decline rates, low leverage and manageable capex levels. Furthermore, we believe each basin TXO is in presents its own unique growth opportunity set. Finally, the management team is well experienced and has a track record of extracting incremental value out of assets, and applying its skill set to potential acquisition targets… TXO aims to payout 100% of its cash available for distribution, which currently is resulting in a 4Q annualized yield of 14.4%. While distributions are variable and directly impacted by commodity prices, we believe low production decline rates are supportive of a higher payout,' Akyol opined. Akyol quantifies his stance on TXO with a Buy rating, and he gives the stock a $20 price target that suggests a gain of 18% on the one-year horizon. Add in the dividend yield, and this stock can bring a one-year return of 32.5%. (To watch Akyol's track record, click here) While there are only 2 recent reviews on record here, they are both positive – giving TXO a Moderate Buy consensus rating. The stock has a current selling price of $16.95, and its average target price of $21.50 implies a one-year upside potential of ~27%. (See TXO stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.

Business Wire

21-04-2025

Business
Business Wire

Angel Oak Mortgage REIT, Inc. Sets Date for First Quarter 2025 Earnings Release and Conference Call

Angel Oak Mortgage REIT, Inc. (AOMR): Among the Cheap Growth Stocks to Buy Now

Yahoo

08-03-2025

Business
Yahoo

Angel Oak Mortgage REIT, Inc. (AOMR): Among the Cheap Growth Stocks to Buy Now

We recently compiled a list of the . In this article, we are going to take a look at where Angel Oak Mortgage REIT, Inc. (NYSE:AOMR) stands against the other cheap growth stocks. Growth stocks—those of companies expected to grow at an above-average rate compared to other firms—have historically exhibited cyclical performance patterns. For instance, during the 1990s dot-com era, growth stocks did well, as reported by Hartford Funds. From 2014 to 2024, growth stocks surged ahead of other market segments, with the Russell Growth Index delivering an annualized return of 17%. This return was more than double that of value stocks (8%), small-cap stocks (8%), and international equities (5%). The broader market, which itself has been heavily influenced by large-cap tech companies, delivered a 13% annualized return. This further amplifies the performance of growth-oriented investments. This growth-driven rally had profound effects on the composition of traditionally balanced portfolios. A standard 60/40 portfolio (60% equities, 40% bonds) that was left untouched over this period would have seen its growth stock allocation more than double from 20% to 42%, crowding out other investment segments. As financial markets navigate a stabilizing interest rate environment and moderating inflation, investors are revisiting growth equities with renewed focus. Cheap growth stocks have reemerged as a strategic play in 2025. With the Federal Reserve pausing its tightening cycle and inflation cooling to 2.9% (down from 2022's 9.1% peak), the macroeconomic landscape now favors selective risk-taking. Analysts suggest that stocks with a price-to-earnings (P/E) ratio below 15x often present attractive investment opportunities. These stocks may offer a combination of growth potential, driven by strong revenue and earnings expansion, as well as resilience, enabling them to perform well even in uncertain macroeconomic conditions. As Charlie Munger aptly said, "All intelligent investing is value investing—acquiring more than you are paying for. You must value the business in order to value the stock." This mindset aligns perfectly with identifying companies with lower P/E ratios, where the value they offer can outweigh the price being paid. Given this, we will take a look at some of the best cheap growth stocks to invest in. To compile a list of the 10 Cheap Growth Stocks to Buy Now, we first utilized Finviz stock screener to identify US companies with a Price-to-Earnings (P/E) ratio of 15 or lower and an implied sales growth of over 20% over the last five years. From this selection, we then ranked the stocks according to their P/E ratio. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A woman standing in front of a skyscraper checking the stock value of a REIT-Mortgage firm on her phone. Price to Earnings ratio: 3.22 Angel Oak Mortgage REIT, Inc. (NYSE:AOMR) is a real estate investment trust (REIT). It specializes in acquiring and investing in first lien non-qualified mortgage loans and other mortgage-related assets in the U.S. On February 28, 2025, Angel Oak Mortgage REIT, Inc. (NYSE:AOMR) paid its scheduled quarterly cash dividend of $0.32 per share, as previously declared on February 6, 2025. This dividend aligns with the company's ongoing commitment to provide regular returns to its shareholders, reflecting a forward annual dividend of $1.28 and a yield of approximately 13.39%. Angel Oak Mortgage REIT, Inc. (NYSE:AOMR) delivered solid Q3 2024 results, reporting net interest income of $9.0 million, a 22% increase from $7.4 million in Q3 2023. The company posted GAAP net income of $31.2 million, reflecting a strong portfolio performance. However, distributable earnings showed a loss of $3.4 million, indicating some operational challenges. Angel Oak Mortgage REIT executed a $316.8 million securitization in October, reducing debt and lowering funding costs. Donald Fandetti of Wells Fargo maintains a Buy rating on the stock, with a price target of $12. Overall AOMR ranks 2nd on our list of the cheap growth stocks to buy now. While we acknowledge the potential of AOMR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AOMR but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio

Latest news with #AngelOakMortgageREIT

Angel Oak Mortgage REIT, Inc. Reports First Quarter 2025 Financial Results

Seeking at Least 14% Dividend Yield? Analysts Suggest 2 Dividend Stocks to Buy

Seeking at Least 14% Dividend Yield? Analysts Suggest 2 Dividend Stocks to Buy

Angel Oak Mortgage REIT, Inc. Sets Date for First Quarter 2025 Earnings Release and Conference Call

Angel Oak Mortgage REIT, Inc. (AOMR): Among the Cheap Growth Stocks to Buy Now

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