Claros mortgage trust CEO Richard Mack buys $121,059 in stock

Published 14/03/2025, 23:06
Claros mortgage trust CEO Richard Mack buys $121,059 in stock

Richard Mack, CEO and Chairman of Claros Mortgage Trust , Inc. (NYSE:CMTG), recently acquired additional shares of the company’s stock. According to a recent SEC filing, Mack purchased a total of 35,000 shares over two days, with the transactions taking place on March 12 and March 13, 2025. The timing is notable as the stock has shown strong momentum with a nearly 30% gain over the past week, though it remains down about 55% over the past year.

The shares were acquired at prices ranging from $3.38 to $3.6559 per share, resulting in a total transaction value of $121,059. Following these purchases, Mack now holds a total of 2,599,981 shares directly. The stock currently trades at just 0.25 times book value and offers a substantial 10% dividend yield. InvestingPro analysis reveals 13 additional key insights about CMTG’s valuation and performance metrics.

These transactions reflect Mack’s continued investment in the real estate-focused trust, which operates under the umbrella of Mack Real Estate Group, headquartered in New York. With a market capitalization of $503 million, CMTG currently trades below its InvestingPro Fair Value, suggesting potential upside for investors who share the CEO’s confidence in the company’s prospects.

In other recent news, Claros Mortgage Trust has announced a net loss of $100.7 million for the fourth quarter of 2024 and $221.3 million for the year, primarily due to significant losses on real estate and credit provisions. Following this earnings report, Moody’s downgraded the company’s ratings to B2 from B1 and placed them under review for potential further downgrades. The downgrade reflects concerns over the company’s asset quality and liquidity challenges, despite its strong capitalization compared to peers.

Additionally, Keefe, Bruyette & Woods analyst Jade Rahmani revised the price target for Claros Mortgage Trust to $2.50 from $4.00, maintaining an Underperform rating. This adjustment considers ongoing credit costs, a downsized portfolio, and increased non-accrual loans. The company’s decision to suspend its quarterly dividend, originally scheduled for January 2025, has also been highlighted as a measure to conserve capital and enhance financial flexibility.

The board of directors will evaluate the possibility of reinstating the dividend based on market conditions and financial performance. Claros Mortgage Trust has taken proactive steps to manage liquidity, reducing unfunded commitments significantly over recent periods. Despite these efforts, the firm faces limited liquidity, with available resources standing at $102 million.

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