Sachem Capital Corp. [SACH] Stock Forecast

Sachem Capital's new dividend is 109% covered by its fiscal 2023 third-quarter net income. Net income per share only grew by 1 cent from its year-ago comp on the back of the incredibly dilutive issue of new equity. The specter of another dividend cut remains as non-performing loans at 17% remain robust but could improve as the Fed stops further rate hikes.

BRANFORD, Conn., Nov. 08, 2023 (GLOBE NEWSWIRE) -- Sachem Capital Corp. (NYSE American: SACH) (the “Company”) announced today that the Company will release its third quarter 2023 financial results after market close on Monday, November 13, 2023. A webcast and conference call to discuss the results will be held on Tuesday, November 14, 2023, at 8:00 a.m. Eastern Standard Time.

In this article, I make the case that Sachem baby bonds are very undervalued. Sachem Capital is an unusual mortgage REIT that has several baby bonds with yields up to 10.59%. However, its debt levels are much lower than those of other mREITs.

Sachem Capital's financial results were robust in the second quarter, with a net profit of $5.7M. The company's loan loss provisions were lower than the previous year, but the dividend is not fully covered by earnings. The preferred shares offer a well-covered dividend, but the current yield is lower compared to the higher-yielding baby bonds.

Sachem is currently paying out a 15.5% dividend yield to its common shareholders. Fiscal 2023 second quarter EPS of $0.11 per share meant the mREIT was unable to cover its $0.13 per share dividend payment. A further rise in loans on non-accrual status, which stood at 19% as of the end of the second quarter, could derail the current payout.

Sachem Capital offers a high dividend yield of 15% and has provided investors with total returns of 39% in the last five years. The company focuses on larger loans with short duration and plans to expand into new markets for future growth. The stock appears to be cheap based on traditional metrics as compared to its historical range.

BRANFORD, Conn., Aug. 01, 2023 (GLOBE NEWSWIRE) -- Sachem Capital Corp. (NYSE American: SACH) (the “Company”) announced today that the Company will release its second quarter 2023 financial results after market close on Monday, August 14, 2023. A webcast and conference call to discuss the results will be held on Tuesday, August 15, 2023 at 8:00 a.m. Eastern Daylight Time.

While macro headwinds continue to affect the performance of penny stocks in general, it's been largely a different story with the top penny stocks. Among the thousands of stocks trading for $5 per share or less, a select number of them have performed very well in recent months.

When it comes to selecting the best dividend stocks, an approach worth exploring is focusing on undervalued high-yield stocks. It's easy to conflate a high dividend yield with a low valuation, but this is often not true.

Before you make any decision about these undervalued REITs, first rest assured that I'll only be delivering facts to the table. Not only can you trust that these investment ideas are actually undervalued by a commonly gauged metric, but each of them also features overall bullish analyst support.

Sachem Capital Corp. is a US stock , located in Branford of Ct and trading under the symbol SACH

1 stock analysts have 1 predictions with a medium analyst target price of $6. The lowest prediction is $6 and the highest is $6

Sachem Capital Corp. stock price is $3.77 today.

Yes, Sachem Capital Corp. is a publicly traded company.