Claros Mortgage Trust (NYSE:CMTG) Stock Price Down 5.2% - Here's Why

On Tuesday, shares of Claros Mortgage Trust, Inc. (NYSE:CMTG) experienced a significant decline, falling by 5.2%. The stock reached a low of $3.72 before closing at $3.66, marking a notable drop from its previous closing price of $3.86. During the trading session, 51,314 shares changed hands, which is an astonishing 89% decrease compared to the average volume of 477,807 shares.

Analyst Ratings Changes

In recent months, several analysts have reassessed their outlook on Claros Mortgage Trust. Notably, on October 17th, JPMorgan Chase & Co. reduced their price target for CMTG from $9.00 to $6.50, maintaining a "neutral" rating. Similarly, Keefe, Bruyette & Woods lowered their target from $6.50 to $4.00, assigning an "underperform" rating to the stock in a report dated January 14th. In contrast, UBS Group upgraded the shares from a "neutral" rating to a "buy" rating, but adjusted their price target down from $8.00 to $6.00 on January 10th. Currently, there are two analysts who rated the stock with a sell rating, three issued a hold rating, and one analyst gave it a buy rating. According to data from MarketBeat.com, the average analyst rating for Claros Mortgage Trust is "Hold" with an average price target set at $6.13.

Claros Mortgage Trust Trading Down 7.3%

The stock's performance shows a 50-day simple moving average of $5.38, while the 200-day simple moving average stands at $6.92. The company exhibits a high debt-to-equity ratio of 2.11, along with a quick ratio and current ratio both at 20.68. As it stands, Claros Mortgage Trust has a market capitalization of $498.50 million and a price-to-earnings ratio of -5.69, with a beta of 1.62 indicating higher volatility compared to the market.

Institutional Investors Weigh In On Claros Mortgage Trust

Recent trading activity indicates changes in institutional ownership of CMTG. For instance, Blue Trust Inc. markedly increased its stake in Claros Mortgage Trust by 2,260.7% in the third quarter, acquiring 5,406 shares valued at approximately $43,000. Meanwhile, GSA Capital Partners LLP took a new position worth about $101,000 in the same quarter. SG Americas Securities LLC also raised its stake by 18.4%, now owning 23,769 shares worth $107,000 after a recent purchase. Other institutional investors, such as Intech Investment Management LLC and Atria Investments Inc., also adjusted their holdings in the company, reflecting a trend where institutional ownership is currently at 89.53% of the total shares outstanding.

About Claros Mortgage Trust

Claros Mortgage Trust, Inc. operates as a real estate investment trust (REIT) that focuses on originating both senior and subordinate loans secured by transitional commercial real estate assets within the United States. As a REIT, the company has the advantage of being exempt from corporate income tax on the portion of its net income distributed to its shareholders.

Should You Sell CMTG Stock?

With the current "Reduce" rating among analysts, those considering an investment in Claros Mortgage Trust should closely examine their options. MarketBeat tracks the top-rated research analysts and their stock recommendations. Notably, analysts have identified five stocks they believe could provide better investment opportunities than Claros Mortgage Trust.

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