Claros Mortgage Trust director Steven Richman buys $17,000 in stock

Published 13/03/2025, 22:08
Claros Mortgage Trust director Steven Richman buys $17,000 in stock

Steven Leonard Richman, a director at Claros Mortgage Trust , Inc. (NYSE:CMTG), recently made a significant purchase of the company’s stock. According to a recent SEC filing, Richman acquired 5,000 shares of Claros Mortgage Trust common stock on March 12, 2025, at a price of $3.40 per share. The purchase comes as the stock trades at just 0.25 times book value, with shares having declined over 61% in the past year before showing recent signs of recovery with a 29.55% gain in the past week. This transaction amounted to a total value of $17,000. Following this purchase, Richman now owns 18,500 shares directly. The transaction highlights the director’s continued investment in the real estate-focused company, which currently offers an attractive 11.7% dividend yield. According to InvestingPro analysis, the stock is currently trading near its Fair Value, with 12 additional exclusive insights available to subscribers, including detailed valuation metrics and growth prospects.

In other recent news, Claros Mortgage Trust Inc. reported a net loss of $100.7 million for the fourth quarter of 2024, contributing to a total annual loss of $221.3 million. The losses were largely due to an $80 million loss on real estate owned held for sale and a $30 million provision for credit losses. In response to these financial challenges, Moody’s downgraded Claros Mortgage Trust’s ratings to B2 from B1, while placing them under review for further potential downgrades. The company also suspended its quarterly dividend, a move that led to a record low in its stock price, as it aims to conserve capital and enhance financial flexibility.

Keefe, Bruyette & Woods analyst Jade Rahmani adjusted the price target for Claros Mortgage Trust to $2.50 from $4.00, maintaining an Underperform rating. The revision was based on the company’s recent performance and future earnings estimates, which are affected by increased credit costs and a downsized portfolio. Despite efforts to manage liquidity, Claros Mortgage Trust faces ongoing challenges with limited available liquidity and a significant secured term loan maturing in 2026. The company’s board will reassess the decision to reinstate the dividend based on various factors, including market conditions and financial performance.

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