In a recent transaction, Anthony A. Yoseloff, Executive Managing Member of Davidson Kempner Capital Management LP (DKCM), sold shares of Angel Oak Mortgage REIT, Inc. (NYSE:AOMR) valued at approximately $5 million. The shares were sold at a price of $10.001 each, according to a filing with the U.S. Securities and Exchange Commission.
The transaction, which took place on September 17, 2024, involved the sale of 500,000 shares of common stock, par value $0.01 per share, of Angel Oak Mortgage REIT. Following the sale, the shares owned by the reporting entities associated with Yoseloff amounted to 5,181,869 shares of the company's common stock.
It's worth noting that the securities reported in this transaction are held directly by Xylem (NYSE:XYL) Finance LLC, with DKCM acting as the investment manager. The managing members of DKCM, including Yoseloff, are responsible for the voting and investment decisions relating to the securities held by Xylem as disclosed in the footnotes of the SEC filing.
The reporting persons have clarified that the filing of this statement should not be interpreted as an admission that they are the beneficial owners of the reported securities for purposes of Section 16 of the Securities Exchange Act of 1934. They expressly disclaim beneficial ownership of these securities except to the extent of their pecuniary interest, if any.
Investors tracking insider transactions such as this one might consider it a significant move, as it reflects the actions of those who are often most familiar with the company's operations and prospects. Davidson Kempner Capital Management and its executives are known entities in the investment community, and their transactions are closely watched for insights into their views on the companies they manage and invest in.
Angel Oak Mortgage REIT, Inc. specializes in the real estate sector and is incorporated in Maryland. The company is part of the broader real estate and construction industry, with a focus on mortgage-related assets.
In other recent news, Angel Oak Mortgage REIT has reported significant developments in its operations. The company experienced growth in net interest income and led a $300 million securitization deal. Additionally, it has filed for a $750 million shelf for future capital raises and closed a $50 million senior unsecured notes issuance.
Despite a decrease in GAAP book value, Angel Oak Mortgage REIT is anticipating positive impacts from rate and spread movements. The company also declared a $0.32 per share common dividend and has plans to invest in high-quality non-QM loans. The economic book value per share was reported to be $13.16 as of June 30, marking a 4.5% decrease from the previous quarter.
Furthermore, Angel Oak Mortgage REIT plans to acquire around $1 billion in loans with the new capital raised in July. The company is optimistic about the non-QM residential mortgage market and capital markets, and intends to increase investment into the business through loan acquisitions, securitization execution, and focused capital allocation. These are among the recent developments for the company.
InvestingPro Insights
Angel Oak Mortgage REIT, Inc. (NYSE:AOMR) has caught the attention of investors not only through insider transactions but also due to its compelling financial metrics. As highlighted by InvestingPro, AOMR is trading at a low earnings multiple with a P/E ratio of just 5.32, suggesting that the stock may be undervalued relative to its earnings. This is further supported by an adjusted P/E ratio for the last twelve months as of Q2 2024, which stands at an even lower 5.0.
Investors seeking income may also find AOMR's dividend yield attractive. The company has been rewarding its shareholders with a significant dividend yield of 12.26%, a figure that stands out especially in the current interest rate environment. Moreover, the company's liquid assets have been sufficient to cover short-term obligations, indicating a level of financial stability that risk-averse investors might appreciate.
However, it is important for investors to be aware of the potential challenges ahead. Analysts anticipate a sales decline in the current year, and net income is also expected to drop. Despite these concerns, AOMR has been profitable over the last twelve months, and analysts predict the company will maintain profitability this year, as per InvestingPro Tips.
For those interested in a deeper dive, InvestingPro offers additional insights on Angel Oak Mortgage REIT, Inc. There are currently 7 further InvestingPro Tips available, which can provide a more comprehensive understanding of the company's financial health and future outlook. To explore these tips and more detailed analytics, visit InvestingPro.
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