Stryker shares tumble despite strong Q2 results and raised guidance
Richard Mack, CEO and Chairman of Claros Mortgage Trust , Inc. (NYSE:CMTG), recently acquired 115,000 shares of the company’s common stock. The transaction, dated March 10, 2025, was completed at a weighted average price of approximately $3.1932 per share, resulting in a total investment of $367,218. The $450 million market cap company currently trades near InvestingPro’s Fair Value estimate and offers an attractive 11.7% dividend yield.
The shares were purchased in multiple transactions, with prices ranging from $3.1482 to $3.2163. Following this acquisition, Mack now holds a total of 2,564,981 shares directly. This move signals a significant investment in the company by its top executive, coming after the stock’s 62% decline over the past year. InvestingPro analysis reveals 13 additional key insights about CMTG’s valuation and performance metrics in their comprehensive Pro Research Report.
In other recent news, Claros Mortgage Trust Inc. reported a net loss of $100.7 million for the fourth quarter of 2024 and $221.3 million for the year, primarily due to an $80 million loss on real estate held for sale and a $30 million provision for credit losses. In response to these financial challenges, the company has suspended its quarterly dividend, a move aimed at conserving capital and enhancing financial flexibility. Moody’s Ratings downgraded Claros Mortgage Trust to B2 from B1, citing concerns over declining asset quality and placing the ratings under review for potential further downgrades.
Keefe, Bruyette & Woods analyst Jade Rahmani also revised the price target for Claros Mortgage Trust to $2.50 from $4.00, maintaining an Underperform rating due to high credit uncertainty and a projected decline in earnings and book value. The company’s liquidity remains limited, with only $102 million available, despite efforts to manage it through asset sales and the suspension of dividends. Claros Mortgage Trust has managed to lower its unfunded commitments significantly over the past two years, yet liquidity constraints persist.
The company’s board will evaluate the possibility of reinstating the dividend based on market conditions and financial performance. Analysts continue to express concerns over the company’s high proportion of risk 4/5 loans, which represent 46% of the unpaid principal balance. Moody’s will focus on the firm’s loan portfolio quality and its ability to absorb potential losses during the review period.
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