In a challenging market environment, Sachem Capital Corp (NYSE:SACH)'s stock has touched a 52-week low, with shares falling to $1.35. With a market capitalization of $63.7 million, InvestingPro data shows the company maintains a strong current ratio of 6.42, indicating solid liquidity despite market pressures. The real estate finance company has faced significant headwinds over the past year, reflected in a stark 1-year change with a decline of -64.13%. Investors have shown concern as the stock plummeted to its lowest price level in a year, marking a period of intense pressure for the company. According to InvestingPro analysis, the stock's RSI suggests oversold territory, while offering a substantial 14.08% dividend yield. Trading at just 0.29 times book value, the stock appears undervalued based on InvestingPro's Fair Value assessment. The current price point presents a critical juncture for Sachem Capital as it navigates through the prevailing economic conditions that continue to test the resilience of the real estate financing sector.
In other recent news, Sachem Capital Corp. has experienced a decrease in revenue to $14.8 million, down from $17.8 million in the same period last year, attributed to fewer loan originations amid rising construction costs and high interest rates. The company also reported a net loss of $6.1 million, despite efforts to recover approximately 70% of the unpaid principal balance through the sale of mortgage loans. Sachem Capital is currently negotiating this sale as part of its recent developments.
Additionally, Sachem Capital has declared dividends on different occasions. The company declared a quarterly dividend of $0.05 per share and a quarterly dividend payment for its 7.75% Series A Cumulative Redeemable Preferred Stock, amounting to $0.48 per share.
The company has also made a significant change in its independent registered public accounting firm, terminating its relationship with Hoberman & Lesser CPA’s, LLP, and appointing Baker Tilly US, LLP as its new auditor. This decision was approved by the Audit Committee of the company's Board of Directors.
In terms of strategic investments, Sachem Capital has acquired a 20% stake in Shem Creek Capital for $2.5 million. These are the recent developments that Sachem Capital has been focusing on.
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