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Adamas Trust
(NASDAQ:ADAM)
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Rating:69Neutral
Price Target:
$11.00
▲(11.79% Upside)
Action:Reiterated
Date:08/17/26
ADAM’s score is driven primarily by improved recent profitability and a constructive earnings call narrative (covered and rising dividend, book value growth, and portfolio scaling). Technicals are supportive with strong trend and momentum, though near-overbought signals add some caution. Valuation looks compelling on a low P/E and high yield, but the overall score is capped by the biggest risk factor: very high leverage and rate-sensitive book value/capital markets exposure typical of mortgage REITs.
Positive Factors
Recurring Earnings Growth
EAD growth and dividend coverage indicate stronger recurring earnings capacity. Sustained coverage can support distributions and provide capital for portfolio expansion, although future durability still depends on financing costs and asset performance.
Negative Factors
High Leverage
Very high leverage amplifies exposure to funding costs, asset-value declines and margin requirements. It can boost returns in favorable markets, but reduces financial flexibility and makes book value and earnings more sensitive to adverse conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Earnings Growth
EAD growth and dividend coverage indicate stronger recurring earnings capacity. Sustained coverage can support distributions and provide capital for portfolio expansion, although future durability still depends on financing costs and asset performance.
Read all positive factors
Adamas Trust (ADAM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$878.13M
Dividend Yield9.76%
Average Volume (3M)882.24K
Price to Earnings (P/E)5.8
Beta (1Y)0.86
Revenue Growth42.50%
EPS Growth793.53%
CountryUS
Employees221
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)1.71
Shares Outstanding89,879,780
10 Day Avg. Volume756,288
30 Day Avg. Volume882,242
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)0.46
Price to Sales (P/S)0.82
P/FCF Ratio5.24
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$9.75Price Target Upside-0.91% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)1.49
Revenue Forecast (FY)$275.00M
Adamas Trust Business Overview & Revenue Model
Company Description
Adamas Trust, Inc. is a U.S.-based entity primarily focused on the acquisition, investment, financing, and management of assets connected to single-family and multi-family residential mortgages. Its diverse portfolio includes targeted residential ...
How the Company Makes Money
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Adamas Trust Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call communicated strong operational and financial progress—notably robust earnings growth (EAD +36% YoY), continued book value expansion, meaningful portfolio growth (+36% YoY to $11.7B) and record BPL purchases—while acknowledging short-term rate-driven mark-to-market pressure (QTD adjusted book value down ~2.3%), modest unrealized portfolio losses, higher funding costs on recent deals, and constructive's ROE below target. On balance, the positives from diversified recurring earnings, hedging gains, liquidity and capital actions outweigh the transitory challenges tied to market volatility.Positive Updates
Strong Earnings and EAD Growth
GAAP earnings of $0.48 per common share and Earnings Available for Distribution (EAD) of $0.30 per share for Q2 2026. EAD has grown 36% year-over-year and now exceeds the increased quarterly dividend of $0.27 per share; this marks the ninth increase in EAD over the past 10 quarters.
Negative Updates
Quarter-to-Date Book Value Pressure
As of July 28 quarter-to-date, adjusted book value was estimated to be down approximately 2.3%, reflecting interest rate moves and mark-to-market sensitivity after the quarter end.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Earnings and EAD Growth
GAAP earnings of $0.48 per common share and Earnings Available for Distribution (EAD) of $0.30 per share for Q2 2026. EAD has grown 36% year-over-year and now exceeds the increased quarterly dividend of $0.27 per share; this marks the ninth increase in EAD over the past 10 quarters.
Read all positive updates
Company Guidance
Management's forward guidance emphasized continued expansion of recurring earnings and book value while scaling Constructive: they raised the quarterly dividend to $0.27 (covered by EAD $0.30 vs. GAAP EPS $0.48), reported GAAP BV $10.16 and adjusted BV $11.05 (up 1.8% and 2.3% Q/Q), and said QTD adjusted BV was down ~2.3% as of July 28; they expect to keep agency allocation near 56% (agency assets $7.2B, 61% of the investment portfolio) while deploying incremental capital into residential credit (record $632M of BPL loan purchases, Constructive originations $428M, Adamas bought ~$1.5B of single‑family assets split $798M agencies / $679M credit), complete 5–6 BPL rental securitizations (two done totaling ~$521M at a weighted cost of 5.48%), and target 15%+ ROE on new equity (Constructive H1 annualized ROE ~12% with ~60 bps funding savings and ~$3M annual cost reductions phasing in H2 2026–2027); financing and liquidity guidance included company recourse leverage ~5.5x (portfolio recourse 5.2x), warehouse capacity $3.7B, cash ~$182M and total liquidity ~ $400M, ATM capacity increased to $250M, and 2026 G&A expected ~7–7.5% (total G&A $25.6M this quarter).Adamas Trust Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
41
Neutral
Cash Flow
50
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 956.68M | 805.53M | 558.92M | 500.80M | 138.11M | 380.19M |
| Gross Profit | 548.35M | 352.88M | 238.28M | 308.67M | 8.69M | 300.91M |
| EBITDA | 396.50M | 177.51M | -32.88M | -25.60M | -187.15M | 242.32M |
| Net Income | 202.13M | 149.05M | -62.03M | -48.66M | -298.61M | 193.20M |
Balance Sheet | ||||||
| Total Assets | 12.96B | 12.64B | 9.22B | 7.40B | 6.24B | 5.66B |
| Cash, Cash Equivalents and Short-Term Investments | 212.31M | 210.33M | 4.00B | 2.20B | 344.28M | 490.45M |
| Total Debt | 11.32B | 11.00B | 3.56B | 2.81B | 2.65B | 2.52B |
| Total Liabilities | 11.49B | 11.21B | 7.81B | 5.77B | 4.38B | 3.23B |
| Stockholders Equity | 1.47B | 1.43B | 1.39B | 1.58B | 1.77B | 2.34B |
Cash Flow | ||||||
| Free Cash Flow | 156.37M | 125.89M | 4.60M | 29.95M | 91.78M | 138.91M |
| Operating Cash Flow | 158.19M | 134.04M | 14.07M | 29.95M | 91.78M | 138.91M |
| Investing Cash Flow | -2.11B | -2.90B | -2.24B | -1.22B | -508.77M | -132.95M |
| Financing Cash Flow | 1.99B | 2.78B | 2.23B | 1.14B | 460.07M | 27.41M |
Adamas Trust Technical Analysis
Positive
9.84
Price Trends
9.35
Positive
8.82
Positive
8.00
Positive
Market Momentum
0.19
Positive
56.66
Neutral
18.43
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADAM, the sentiment is Positive. The current price of 9.84 is above the 20-day moving average (MA) of 9.84, above the 50-day MA of 9.35, and above the 200-day MA of 8.00, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 56.66 is Neutral, neither overbought nor oversold. The STOCH value of 18.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADAM.
Adamas Trust Risk Analysis
Adamas Trust disclosed 76 risk factors in its most recent earnings report. Adamas Trust 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
Adamas Trust Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $878.13M | 5.75 | 14.08% | 11.10% | 42.50% | 793.53% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
57 Neutral | $591.89M | 14.01 | 5.45% | 11.14% | 3.78% | -15.19% | |
51 Neutral | $445.53M | -2.32 | -16.70% | 11.58% | -19.57% | -397.76% | |
48 Neutral | $303.95M | -0.54 | -37.62% | 10.54% | -67.55% | -82.70% | |
47 Neutral | $579.07M | -217.37 | 0.59% | 14.63% | 20.85% | 91.76% | |
42 Neutral | $234.20M | -0.43 | -35.83% | ― | 79.83% | -27.98% |
* Real Estate Sector Average
ADAM
Adamas Trust
9.84
3.62
58.15%
RWT
Redwood
4.63
-0.64
-12.13%
RC
Ready Capital
1.85
-2.19
-54.22%
KREF
Kkr Real Estate Finance
7.61
-0.88
-10.34%
TRTX
Tpg Re Finance
7.74
-0.54
-6.51%
CMTG
Claros Mortgage Trust
1.65
-1.93
-53.91%
Adamas Trust Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Adamas Trust Completes $90 Million Senior Notes Offering
Positive
Aug 14, 2026
On August 14, 2026, Adamas Trust completed a public offering of $90 million of 9.600% Senior Notes due 2031, issued at par and structured as senior unsecured obligations ranking alongside its existing series of high-yield senior notes. The notes, ...
Private Placements and FinancingRegulatory Filings and Compliance
Adamas Trust Announces New Senior Notes Offering
Neutral
Aug 12, 2026
On August 11, 2026, Adamas Trust, Inc. entered into an underwriting agreement with a syndicate of major investment banks to issue $90 million of 9.600% senior notes due 2031, with a 30‑day option for underwriters to buy an additional $13.5 m...
Business Operations and StrategyDividendsFinancial Disclosures
Adamas Trust Raises Quarterly Dividend, Emphasizing Earnings Strength
Positive
Aug 11, 2026
On August 11, 2026, Adamas Trust, Inc., an internally managed real estate investment trust, reported that it targets durable earnings and long-term value by allocating capital across complementary real estate and capital markets businesses. The co...
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
Adamas Trust Posts Strong Q2 Earnings and Dividend Increase
Positive
Jul 29, 2026
Adamas Trust, Inc. reported solid second-quarter 2026 results on July 29, 2026, posting GAAP basic earnings per share of $0.48 and earnings available for distribution of $0.30 per share, up 36.4% year-on-year, as book value per share rose to $10.1...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Adamas Trust Launches $250 Million ATM Stock Program
Positive
Jun 12, 2026
On June 12, 2026, Adamas Trust, Inc. entered into an equity distribution agreement with JonesTrading Institutional Services LLC, BTIG, LLC and B. Riley Securities, Inc. to establish an at-the-market offering program for up to $250 million of its c...
Executive/Board ChangesDividendsShareholder Meetings
Adamas Trust Holds 2026 Annual Meeting, Declares Dividends
Positive
Jun 11, 2026
On June 11, 2026, Adamas Trust held its 2026 annual meeting of stockholders, where shareholders re-elected seven directors, approved on an advisory basis executive compensation, adopted an amendment to the company’s 2017 Equity Incentive Pla...
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.