In a report released today, Mark Fitzgibbon from Piper Sandler downgraded Amalgamated Bank (AMAL – Research Report) to a Hold, with a price target of $38.00.
Mark Fitzgibbon has given his Hold rating due to a combination of factors affecting Amalgamated Bank. One of the primary concerns is the uncertainty arising from the ‘Green Freeze’ initiative announced by the Trump Administration, which aims to halt funding for environmental and climate change projects. This creates a challenging environment for Amalgamated Bank, which has a significant portion of its balance sheet tied to climate-related loans, making the potential impact of the freeze a critical issue.
Despite these concerns, Fitzgibbon notes that the bank’s projected loan growth remains relatively stable, with expectations of meeting its 2025 balance sheet growth goals. The bank’s deliberate approach to slowing growth as it approaches $10 billion in assets is seen as a prudent move. However, potential risks such as asset quality deterioration, regulatory challenges, and market liquidity issues continue to weigh on the stock, justifying the Hold rating.
Based on the recent corporate insider activity of 87 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AMAL in relation to earlier this year.