Richard H. Pickup, 10% owner of Impac Mortgage Holdings (IMH, Financial), purchased 235,000 shares in the company in six transactions from Nov. 10 to Nov. 16, according to the Securities and Exchange Commission.
The purchases were made for an average price of $13.94 per share. Pickup now owns 497,902 shares in the company.
Impac Mortgage Holdings is an established independent residential mortgage lender based in Maryland that was founded in 1995. The company’s operating segments include mortgage, lending, real estate services and the long-term mortgage portfolio.
The company’s mortgage lending is approved to originate and service Fannie Mae (FNMA, Financial), Freddie Mac (FMCC, Financial) and Ginnie Mae eligible loans. Impac Mortgage primarily originates, sells and services conventional, conforming agency and government-insured residential mortgage loans originated or acquired through three channels: retail, correspondent and wholesale. Through its mortgage-lending segment the company generates revenue from origination and processing fees.
Impac Mortgage's real estate services provide loss mitigation and real estate services primarily on its own long-term mortgage portfolio. The company provides services to investors, servicers and individual borrowers primarily focusing on loss mitigation and performance of its long-term mortgage portfolio.
Impac Mortgage's long-term mortgage portfolio manages long-term portfolios, which primarily consist of residual interests in the securitization trusts reflected as trust assets and liabilities in its balance sheets. The company receives cash flows from residual interests in securitizations to the extent of excess cash remaining in the trusts after required distributions to bondholders and maintaining required overcollateralization levels are met and other specified parameters within its trusts.
Impac Mortgage has a market cap of $225.5 million, a price-earnings (P/E) ratio of 4.74, an enterprise value of $1.14 billion and a price-book (P/B) ratio of 0.83.
According to GuruFocus Impac Mortgage has a 4 of 10 financial strength rating with a cash-debt ratio of 0.06. The company also has an equity-asset ratio of 0.04 with an interest coverage of 0.16. Impac Mortgage has a Beneish M-Score of -1.65 indicating that the company is a manipulator of its financial statements. The company also has a 5 of 10 profitability and growth rating with an operating margin of 16.79%, a net-margin of 16.11%, an ROE of 27.98% and EBITDA growth (three years) of 38.40%.
Guru Jim Simons (Trades, Portfolio) purchased 42,000 shares in the company during the third quarter at an average price of $16.23 per share. Since Simons purchased the shares, Impac Mortgage Holdings' market price has dipped by an estimated -13%.
According to the Peter Lynch chart below Impac Mortgage is trading below its intrinsic value.
Disclosure:Â Author does not own any shares of this company.
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