Saturday, August 13, 2022

Blackstone Mortgage Trust Inc. (NYSE:BXMT) Stock is Soaring, Here is Why

Blackstone Mortgage Trust Inc. (BXMT) shares are trading at higher $27.88 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $26.00.

To add more color to this target, the company’s high over the last year is $40.62 and the low is $12.67. Over the last 52 weeks, BXMT is down -22.92% while the S&P 500 is up 15.91%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, BXMT reported a profit of $84.73 million. Blackstone Mortgage Trust Inc. also saw revenues increase to $114.96 million. In addition, BXMT has free cash flow of $261.3 million as of 09-2020. The company’s EBITDA came in at $78.92 million which compares well with its peers.

BXMT booked profit margins of 16.40%, its Return on Equity (ROE) is 3.50%, and its Return on Assets is 0.80%. All told, it is clear that, BXMT needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. BXMT has a short ratio of 5.74 and outstanding shares of 146.49M.

Company Outlook

BXMT has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.81 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.93. Investors should also keep an eye on sector updates as BXMT has historically followed its peers on positive news.

All told, Blackstone Mortgage Trust Inc. BXMT has strung together solid data and demonstrated underlying fundamentals. At its current valuation, BXMT represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Blackstone Mortgage Trust Inc. BXMT is now commanding a market cap of 4.07B and a float of 144.72M. BXMT is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of BXMT stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in BXMT, either long or short, and we have not been compensated for this article.

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