Angel Oak Mortgage REIT posts 39% jump in non‑QM, HELOC purchases and retains buy rating

Angel Oak Mortgage REIT reported a 39% year‑over‑year increase in purchases of non‑qualified mortgage (non‑QM) loans and home‑equity lines of credit (HELOCs) in the second quarter, buying $204 million of new loans. The REIT’s CEO and President Sreeni Prabhu said the non‑QM market remains healthy despite strained housing affordability.

The company completed two post‑quarter securitizations that provided fresh capital, reduced its recourse debt‑to‑equity ratio from about 2.3 × to roughly 1.0 ×, and freed $22.3 million for additional loan purchases. Angel Oak’s quarterly earnings per share were $0.35, beating consensus estimates of $0.33. Analysts at JonesTrading reiterated a "buy" rating with a $10.50 price target, while other analysts have mixed ratings. The stock rose 2.6% to $9.01 on the day of the earnings release.