Education
About Us
Working with TipRanks
Follow Us
AG Mortgage (MITT)
NYSE:MITT
Top Page
AG Mortgage
(NYSE:MITT)
Select Model
Select Model
Rating:67Neutral
Price Target:
$7.50
▲(1.90% Upside)
AG Mortgage's overall stock score reflects strong financial performance and attractive valuation, bolstered by strategic initiatives from the earnings call. However, technical indicators suggest a neutral trend, and recent financial setbacks temper the outlook.
AG Mortgage (MITT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$233.55M
Dividend Yield11.01%
Average Volume (3M)172.32K
Price to Earnings (P/E)8.5
Beta (1Y)0.78
Revenue Growth22.45%
EPS Growth-44.01%
CountryUS
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.18
Shares Outstanding31,732,431
10 Day Avg. Volume225,598
30 Day Avg. Volume172,317
Financial Highlights & Ratios
PEG Ratio-0.13
Price to Book (P/B)0.36
Price to Sales (P/S)0.47
P/FCF Ratio3.51
Enterprise Value/Market Cap30.92
Enterprise Value/Revenue21.39
Enterprise Value/Gross Profit22.62
Enterprise Value/Ebitda17.54
Forecast
1Y Price Target
$8.50Price Target Upside15.49% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
AG Mortgage Business Overview & Revenue Model
Company DescriptionAG Mortgage Investment Trust, Inc. (MITT) is a real estate investment trust (REIT) that primarily focuses on investing in and managing a diversified portfolio of residential mortgage assets. The company operates in the mortgage finance sector, specializing in acquiring, financing, and managing mortgage-backed securities (MBS) and other mortgage-related investments. MITT aims to provide attractive risk-adjusted returns to its shareholders through its investment strategies in both agency and non-agency MBS.
How the Company Makes MoneyAG Mortgage generates revenue primarily through interest income derived from its investments in mortgage-backed securities. These securities can include both agency MBS, which are backed by government-sponsored entities, and non-agency MBS, which are not. Additionally, the company may earn income from the net interest margin between the interest earned on its mortgage assets and the cost of funds used to finance these investments. MITT may also benefit from capital appreciation of its securities, as well as potential fees associated with asset management and servicing. Key partnerships with financial institutions and mortgage originators can enhance its access to investment opportunities and financing options, further contributing to its revenue streams.
AG Mortgage Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several strategic advancements, such as dividend increases, strategic acquisitions, and refinancing benefits, which position the company for longer-term growth. However, the quarter was marked by some financial setbacks including a decline in book value and earnings, driven by market volatility and specific loan challenges. While there are promising developments, the immediate financial impact creates a balanced view of the company's performance.Q2-2025 Updates
Positive Updates
Dividend Increase
Increased common dividend by 5% or $0.01 per share.
Strategic Acquisition
Acquired an additional 21.4% of Arc Home, increasing ownership to 66%, with minimal dilution of 2% to June 30 book value.
Refinancing Benefits
Refinanced high-cost inefficient debt, reducing cost of capital by over 500 basis points and generating $40 million additional cash.
Securitization Activity
Completed two securitizations during the quarter, including a joint venture with a leading HELOC originator.
Economic Leverage
Maintained a low economic leverage ratio, ending the quarter at 1.3 turns.
Negative Updates
Book Value Decline
Experienced a modest book value decline of 2.4%, from $10.65 to $10.39.
Earnings Decline
Reported a GAAP net loss available to common shareholders of $1.4 million or $0.05 per share.
Commercial Loans on Nonaccrual
Net interest income down due to certain commercial loans maturing and being placed on nonaccrual.
Market Volatility Impact
Mark-to-market losses driven by broad risk asset weakness following Liberation Day.
Company Guidance
During the second quarter of 2025, AG Mortgage Investment Trust (MITT) reported a modest book value decline of 2.4%, moving from $10.65 to $10.39, while maintaining stability in economic return with a slight negative of 0.5%. The company increased its common dividend by 5% to $0.21 per share and achieved an economic return on equity that was roughly breakeven despite market challenges. MITT completed two securitizations and closed two residential mortgage warehouse facilities, reducing cost of capital by over 500 basis points and generating approximately $40 million additional cash for redeployment. The investment portfolio grew by 2.3% to $7.3 billion, and the economic leverage ratio remained low at 1.3 turns. Additionally, MITT acquired an additional 21.4% of Arc Home, increasing its ownership to 66% with minimal dilution of 2% to June 30 book value, and expects meaningful earnings accretion from this transaction in 2026.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 | 337.60M | 413.19M | 274.71M | 218.00K | 67.52M | -390.36M |
| Gross Profit | 319.28M | 392.14M | 46.14M | -17.08M | 53.91M | -193.93M |
| EBITDA | 411.65M | 398.36M | 248.56M | 92.55M | 106.86M | -374.34M |
| Net Income | 46.34M | 55.74M | 53.78M | -53.10M | 104.19M | -420.92M |
Balance Sheet | ||||||
| Total Assets | 7.46B | 6.91B | 6.13B | 4.37B | 3.36B | 1.40B |
| Cash, Cash Equivalents and Short-Term Investments | 100.17M | 118.66M | 111.53M | 155.69M | 68.08M | 47.93M |
| Total Debt | 6.88B | 6.33B | 5.56B | 3.88B | 2.78B | 418.29M |
| Total Liabilities | 6.93B | 6.37B | 5.60B | 3.91B | 2.79B | 990.34M |
| Stockholders Equity | 536.41M | 543.42M | 528.37M | 462.80M | 570.38M | 409.70M |
Cash Flow | ||||||
| Free Cash Flow | 53.65M | 55.84M | 28.13M | 22.52M | 26.30M | 4.16M |
| Operating Cash Flow | 53.65M | 55.84M | 28.13M | 22.52M | 26.30M | 4.16M |
| Investing Cash Flow | -276.86M | -713.13M | -433.50M | -1.49B | -1.90B | 2.19B |
| Financing Cash Flow | 174.95M | 670.29M | 432.14M | 1.47B | 1.91B | -2.26B |
AG Mortgage Technical Analysis
Neutral
7.36
Price Trends
7.35
Positive
7.22
Positive
6.81
Positive
Market Momentum
>-0.01
Positive
46.88
Neutral
22.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MITT, the sentiment is Neutral. The current price of 7.36 is below the 20-day moving average (MA) of 7.49, above the 50-day MA of 7.35, and above the 200-day MA of 6.81, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.88 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $233.55M | 8.53 | 8.66% | 11.01% | 22.45% | -44.01% | |
66 Neutral | $155.51M | 9.90 | ― | 12.93% | -16.74% | -32.89% | |
63 Neutral | $224.58M | 6.11 | 12.03% | 13.49% | 75.08% | -21.03% | |
62 Neutral | $103.11M | 10.85 | 9.52% | 18.23% | -24.12% | -47.91% | |
60 Neutral | $201.32M | 14.31 | 3.40% | 17.61% | 271.03% | 31.81% | |
48 Neutral | $253.02M | -13.89 | ― | 14.96% | -27.60% | 62.75% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
MITT
AG Mortgage
7.36
0.88
13.58%
ACRE
Ares Commercial
4.68
-1.10
-19.03%
ACR
ACRES Commercial Realty
20.65
5.45
35.86%
NREF
NexPoint Real Estate ate Finance
14.19
0.33
2.38%
AOMR
Angel Oak Mortgage
9.49
0.72
8.21%
REFI
Chicago Atlantic Real Estate ate Finance Inc
12.66
-0.69
-5.17%
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.