Are Traders Shorting New York Mortgage Trust, Inc. (NASDAQ:NYMT) Shares? Stock Directional Outlook

Based on the latest information, investors are looking at New York Mortgage Trust, Inc. (NASDAQ:NYMT)’s short data and trying to figure out market sentiment on which way the market thinks the stock is moving. The firm has 4.27% of total shares float short, yielding a short ratio of 3.62.

High yielding stocks can be very tempting for investors. Trying to maximize the return on every dollar invested is a goal of many individuals. What investors have to remember is that the stocks that promise the highest return potential may also be some of the riskiest to own. Because past performance can’t guarantee future results, investors may need to do some extra research when adding high risk stocks to the portfolio. Most investors are always on the lookout to spot that next big stock winner before everyone else. Making sure that they are not adding too much extra risk when doing this may be the key to keeping the portfolio balanced. 

High yielding stocks can be very tempting for investors. Trying to maximize the return on every dollar invested is a goal of many individuals. What investors have to remember is that the stocks that promise the highest return potential may also be some of the riskiest to own. Because past performance can’t guarantee future results, investors may need to do some extra research when adding high risk stocks to the portfolio. Most investors are always on the lookout to spot that next big stock winner before everyone else. Making sure that they are not adding too much extra risk when doing this may be the key to keeping the portfolio balanced. 

They hope that the stock price will fall or that the company will fail and go bankrupt, leading the equity holders to ruin.  The short sellers will then buy the stock back at a much lower price and replace the borrowed shares, pocketing the difference. 

Shorting a stock can be very risky if the price doesn’t decline like planned and, in fact, increases.  It’s important for any investor to understand the dangers and potentially catastrophic financial losses of short selling.

RECENT PERFORMANCE AND RECOMMENDATION

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Let’s take a look at how the stock has been performing recently.  Over the past twelve months, New York Mortgage Trust, Inc. (NASDAQ:NYMT)’s stock was 6.11%.  Over the last week of the month, it was 2.46%, 3.14% over the last quarter, and  -1.57% for the past six months. 

Over the past 50 days, New York Mortgage Trust, Inc. stock’s -3.57% off of the high and 5.61% removed from the low.  Their 52-Week High and Low are noted here.  -4.61% away from the high and 11.29% from the low. 

The consensus analysts recommendation at this point stands at 2.70 on New York Mortgage Trust, Inc. (NASDAQ:NYMT).  This is based on a 1-5 scale where 1 indicates a Strong Buy and 5 a Strong Sell. The same analysts are predicting that the company shares will trade to $6.04 within the next 12-18 months. 

One of the staple principles for investing is buy low and sell high. While this may sound obvious, many investors end up doing just the opposite. When dealing with the stock market, investors often have to be careful not to let their irrational side take over when making decisions. Investors may get caught up in the flurry when stocks are skyrocketing. The temptation to get on board and be part of the ride can lead to some ill-planned moves. Focusing on near-term movements might be included in the game plan for some, but for others, this may be distracting from the bigger picture and long-term plan. Stocks that become widely publicized and popular in the media may not be the right addition to the individual investor’s portfolio. Conducting the due diligence on any position can help the investor make sure that they are getting in at a good time and price.

Disclaimer: The views, opinions, and information expressed in this article are those of the authors and do not necessarily reflect the official policy or position of any company stakeholders, financial professionals, or analysts. Examples of analysis performed within this article are only examples. They should not be utilized to make stock portfolio or financial decisions as they are based only on limited and open source information. Assumptions made within the analysis are not reflective of the position of any analysts or financial professionals.