In a challenging economic climate, Great Ajax Corp (NYSE:) stock has touched a 52-week low, reaching a price level of $2.98. This downturn reflects a significant retreat from previous market positions, marking a -34.68% change over the past year. Investors are closely monitoring the company’s performance as it navigates through the headwinds that have affected its market valuation. The 52-week low serves as a critical indicator for shareholders and potential investors, who are now assessing the company’s strategies and potential for recovery in a volatile market environment.
In other recent news, Great Ajax Corp recorded a GAAP net loss of $8 million and a negative earnings distribution during its Q3 2024 earnings call. However, the company maintained a dividend yield of 7.2%. Under new management of Rithm Capital Corp, Great Ajax is transitioning into a prominent mortgage real estate investment trust (mREIT), with B.Riley analysts expecting this shift to lead to profitability from early 2025.
The company is undergoing a strategic shift towards commercial mortgage-backed securities (CMBS), with the aim of achieving breakeven earnings by Q1 2025. This includes selling down residential assets and reinvesting in commercial real estate debt, as evidenced by a recent bid on $1 billion worth of loans.
B.Riley has adjusted its earnings per share (EPS) forecast for Great Ajax for fiscal year 2025, reducing it from $0.45 to $0.39 and introduced its EPS estimate for fiscal year 2026 at $0.62. The firm reaffirmed their Buy rating and $6.00 price target for Great Ajax, anticipating dividend coverage by the end of the first quarter of 2025. These are part of the recent developments in the company’s strategic shift.
InvestingPro Insights
Great Ajax Corp’s (AJX) recent touch of a 52-week low aligns with several key insights from InvestingPro. The stock’s current price of $3.03 represents just 49.75% of its 52-week high, underscoring the significant downturn mentioned in the article. This decline is further reflected in the year-to-date price total return of -38.15%, illustrating the challenging year the company has faced.
Despite these headwinds, AJX offers a substantial dividend yield of 7.92%, which may attract income-focused investors. An InvestingPro Tip highlights that the company has maintained dividend payments for 10 consecutive years, demonstrating a commitment to shareholder returns even in difficult times.
Another InvestingPro Tip suggests that analysts expect net income to grow this year, potentially signaling a turnaround from the company’s current unprofitable status over the last twelve months. This projection could provide a glimmer of hope for investors looking beyond the current market challenges.
For those seeking a deeper understanding of Great Ajax Corp’s financial health and future prospects, InvestingPro offers 8 additional tips that could prove valuable in assessing the company’s potential for recovery.
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