Stonegate Mortgage: What A Disappointment
Stonegate Mortgage: A High Growth IPO Flying Under The Radar For Now
Ashleigh Rogers • 13 Comments
Ashleigh Rogers • 13 Comments
Tue, Jan. 19, 11:43 AM
- The best thing that can be said about the market reaction today, is that New Residential (NRZ -0.6%) isn't down as much as the other mortgage-related names (REM -1.8%) which continue to be mercilessly pounded.
- PennyMac (PMT -4.5%), Ocwen (OCN -3.7%), Walter Investment (WAC -4.8%), Stonegate (SGM -3.4%), Armour (ARR -3.5%), Invesco (IVR -2.4%), New York Mortgage (NYMT -4.1%), Apollo Residential (AMTG -3.1%), AG Mortgage (MITT -3.4%), Five Oaks (OAKS -6.7%), American Capital (MTGE -2%), Two Harbors (TWO -2.2%), Chimera (CIM -3.4%).
- Citi's Michael Kaye - who rates NRZ a Buy - says the repurchase plan makes sense given the stock trades at just 0.84x book and yields 18%. Depending on how the buyback is funded, it could add up to a couple of hundred basis points of accretion. It also sends a signal to the markets about management's belief in the stock's value. Management gave little detail on a timetable.
- Previously: New Residential steps in with $200M repurchase plan (Jan. 19)
Wed, Jan. 6, 10:02 AM| Wed, Jan. 6, 10:02 AM
Aug. 11, 2015, 10:58 AM| Aug. 11, 2015, 10:58 AM
Feb. 11, 2015, 9:43 AM
- Calling the troubled stock a compelling risk-reward play, Compass Point's Kevin Barker upgrades Stonegate Mortgage (SGM +6.4%) from Neutral to Buy with $12.50 price target.
- Stonegate is in the currently toxic nonbank mortgage servicing business, as well as the currently sluggish mortgage origination business, and the stock is lower by about 50% since its IPO in late 2013.
Nov. 6, 2014, 12:31 PM
- Amid an earnings miss and lowered guidance, Walter Investment (WAC -20.2%) discloses inquiries from a number of state agencies into its Green Tree Servicing unit.
- Previously: Walter Investment reports sizable decline in earnings
- Earnings fell at Nationstar Mortgage (NSM -20.6%), but in a bit of good news, the company did say it entered into commitments for $43B in new MSR acquisitions.
- Finally, there's lesser-followed Stonegate Mortgage (SGM -15.9%), which went public just more than a year ago, missing estimates by a wide margin with CEO Jim Cutillo noting "industry headwinds and interest rate volatility." The company's servicing portfolio ended Q3 with $17.7B UPB, up 48% this year and up 82% Y/Y.
- New Residential (NYSE:NRZ) - a specialty servicer, but with a somewhat different business model than the other three - reported solid results today and is flat on the session.
Stonegate Mortgage Corp. is a specialty finance company which focuses on originating, acquiring, selling, financing, and servicing agency and non-agency residential mortgages. It operates through the following business segments: Origination, Servicing, and Financing. The Origination segment... More
Industry: Mortgage Investment
Country: United States
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