GPMT stock touches 52-week low at $1.7 amid market challenges

Granite Point Mortgage Trust Inc . (NYSE:GPMT) stock has reached a new 52-week low, dipping to $1.7 as the company faces a challenging market environment. According to InvestingPro data, the stock currently offers an attractive 11.6% dividend yield, while trading at just 0.14 times book value. Technical indicators suggest the stock is in oversold territory. This latest price level reflects a significant downturn over the past year, with the stock experiencing a sharp decline of -61.54% from its previous position. Investors are closely monitoring the stock as it navigates through the current economic conditions that have heavily impacted the real estate investment trust sector. The 52-week low serves as a critical indicator for the company’s performance and investor sentiment, as market participants consider the potential for a rebound or further declines. Notably, management has been actively buying back shares, and InvestingPro analysis reveals 15 additional key insights about GPMT’s financial health and future prospects, available in the comprehensive Pro Research Report.

In other recent news, Raymond (NSE:RYMD) James has reaffirmed its Outperform rating for Granite Point Mortgage Trust with a price target of $4.00. Analysts at the firm reviewed the company’s fourth-quarter performance and annual 10-K report, noting that distributable earnings fell short due to increased CECL reserve expenses. The firm’s analysis suggests that Granite Point’s immediate focus will be on resolving loans on its watch list, with expectations for new investment activities to resume in the latter half of 2025. Despite the challenges posed by non-accrual loans, Raymond James believes the current stock valuation is justified, as it trades at about 33% of its book value. The analysts have adjusted their estimates to reflect a reduced portfolio size at year-end and have adopted a conservative outlook for portfolio growth. The maintained price target indicates a potential for significant appreciation, factoring in the unpredictability tied to the resolution of watch list loans. Raymond James remains confident in its rating, considering the valuation and potential earnings recovery once non-accrual assets are settled.

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