Granite Point Mortgage Trust Inc (GPMT)

Palogic Value Fund and Palogic Value Management, significant shareholders in Granite Point Mortgage Trust Inc. (NYSE:GPMT), have called for immediate operational changes, including cost cutting and halting new loan originations. This comes after Granite Point's GAAP book value and stock price saw substantial declines, with assets shrinking from $3.9 billion to $1.4 billion and net interest income falling significantly. Palogic also highlighted concerns about credit deterioration across various commercial real estate property types and increased compensation costs relative to assets.

Palogic Value Fund has sent a letter to the Board of Granite Point Mortgage Trust, expressing significant concerns about the company's strategy, credit deterioration, declining margins, and excessive corporate cost structure. Palogic urges the Board to prioritize capital preservation, expedite the resolution of legacy assets, aggressively reduce costs, cease new loan originations, and return value to shareholders. They highlight a substantial decline in GAAP book value and stock price over the past five years, suggesting public shareholders share their skepticism.

Wall Street Zen has downgraded Granite Point Mortgage Trust (NYSE:GPMT) to a "strong sell" rating. Other analysts largely maintain neutral or sell ratings, resulting in a consensus "Reduce" rating and an average price target of $1.33. The company recently reported a significant quarterly loss and negative margins, with its shares trading near a 52-week low.

Granite Point Mortgage Trust reported a GAAP net loss of $62 million in Q2 2026, primarily due to credit loss provisions and an impairment loss on real estate. The company focused on resolving legacy loans through repayments, property sales, and participation sales, and refinanced its CLOs to reduce its cost of funds. Management believes the company's market valuation does not reflect its underlying value and aims to narrow this gap through strategic resolutions and capital management.

Keefe, Bruyette & Woods has lowered its price target for Granite Point Mortgage Trust (NYSE:GPMT) to $1.25 from $1.50, while maintaining a "market perform" rating. This implies a potential upside of 1.62% from its previous close. Other analysts have also adjusted their ratings, contributing to a consensus "Reduce" rating and an average price target of $1.33 for GPMT.