Jonathan Morgan, a director at Angel Oak Mortgage REIT, Inc. (NYSE:AOMR), recently purchased 5,000 shares of the company's common stock. The shares were acquired at an average price of $9.0964 each, amounting to a total transaction value of $45,481. The purchase comes as AOMR trades near its 52-week low of $8.88, with a notably low P/E ratio of 3.17 and an attractive dividend yield of ~14%. InvestingPro analysis reveals management has been actively buying back shares, suggesting internal confidence in the company's value. Following this purchase, Morgan now holds a total of 38,059 shares, which includes 6,655 shares of unvested restricted stock scheduled to vest on May 15, 2025. This transaction underscores Morgan's continued investment in the real estate-focused REIT. Trading below book value with a price-to-book ratio of 0.81, AOMR is among 1,400+ stocks covered by detailed InvestingPro Research Reports, offering comprehensive analysis for informed investment decisions.
In other recent news, Angel Oak Mortgage REIT (AOMR) reported a strong third quarter in 2024, highlighted by significant increases in net income, book value, and dividends. The company's GAAP net income was reported at $31.2 million, or $1.29 per diluted share, and the GAAP book value saw a 10.3% increase. Furthermore, a dividend of $0.32 per share has been declared.
These positive developments are reportedly due to the company's strategic deployment of capital into high-quality non-QM loans and a favorable interest rate environment. The company's delinquencies remain low at 1.95%, consistent over six quarters, and management expects a slight increase in delinquencies, reflecting a return to normal levels, not credit deterioration.
In addition to these financial results, AOMR completed a significant securitization in October, which is expected to yield interest savings. Two more securitizations are expected in Q4 2023, with one per quarter planned to continue. Despite increased leverage from the recent securitization, the management expressed confidence in the business environment and the potential for strong shareholder returns. Finally, AOMR anticipates net interest income growth in upcoming quarters and is exploring potential stock buybacks.
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