JMP Securities analyst Steven Delaney has reiterated their neutral stance on GPMT stock, giving a Hold rating on February 14.
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Steven Delaney’s rating is based on Granite Point Mortgage Trust’s financial performance and market position. The company’s fourth-quarter results showed a significant GAAP and distributable loss per share, primarily due to a substantial credit loss provision and write-offs related to problematic loans. This has led to a decrease in the GAAP book value per share, indicating financial challenges.
Moreover, while the company has not originated any new loans, it has funded previously originated ones, leading to a decline in the overall loan portfolio. The credit quality remains a concern, with a notable percentage of loans rated 5, indicating higher risk. Despite maintaining liquidity and a stable leverage ratio, the stock’s current trading price reflects these uncertainties, leading Delaney to conclude that the shares are fairly valued at present levels.
In another report released on February 14, KBW also maintained a Hold rating on the stock with a $2.85 price target.
GPMT’s price has also changed moderately for the past six months – from $2.560 to $2.900, which is a 13.28% increase.