Financial Stocks In Focus – MMA Capital Administration LLC (NASDAQ:MMAC)

On Thursday, Shares of MMA Capital Administration LLC (NASDAQ:MMAC), lost -0.47% to $21.35. The 52-week range of the share price is from $15.15 – $22.75. The beta value for this stock stands at 1.04 points, while its earnings per share (EPS) was $4.79. The company has total market capitalization of $124.10M and a total of 5.96M outstanding shares.

MMA Capital Management, LLC (MMAC) recently stated financial results for the quarter and full year ended December 31, 2016, counting common shareholders’ equity of $125.30M, or $20.75 per diluted common share.  On Thursday, March 16, 2017, the Company will file its Annual Report on Form 10-K for the year ended December 31, 2016 with the Securities and Exchange Commission and will host an shareholder call at 8:30 a.m. ET.

Common shareholders’ equity rose from $116.20M at December 31, 2015 to $125.30M at December 31, 2016.  This change was driven by $19.0M in comprehensive income that is allocable to common shareholders and $9.80M in other reductions in common shareholders’ equity.  Diluted common shareholders’ equity per share rose to $20.75 at December 31, 2016, which represents a boost of 19.0%, or $3.32 per share of Book Value, contrast to what the company stated at December 31, 2015.  Most of this growth, or $2.98 per share, was attributable to comprehensive income from core operations and bond valuations while the balance, or $0.34 per share, was driven by purchases of common shares made by the Company at prices below their Book Value per share.

The company recognized comprehensive income that is allocable to common shareholders of $19.0M during 2016, consisting of $42.40M of net income that is allocable to common shareholders and $23.40M of other comprehensive loss that is allocable to common shareholders.  In comparison, the company recognized $29.80M of comprehensive income allocable to common shareholders during 2015, which consisted of $18.70M of net income that is allocable to common shareholders and $11.10M of other comprehensive income that is allocable to common shareholders.

Michael Falcone, MMA Capital’s Chief Executive Officer stated, “By any measure, we ended a strong year for the Company with solid performances from most of our business lines, though we also practiced some weakness during the fourth quarter.   The formation of our solar venture with TSSP in the fourth quarter was arguably the highlight for the year, showing the opportunity for growth in our origination platform across multiple product types within the solar lending space.  In addition, we recognized strong returns on investment from both the GE affordable housing portfolio that we attained last year and from planned asset dispositions that created additional shareholder value. We also took additional steps in the fourth quarter to manage the Company’s exposure to interest rate risk.  Finally, we also successfully executed our stock buyback plan in 2016, buying back 600,000 shares at a discount to Book Value per share, which resulted in immediate accretion for our shareholders.

While we see opportunity ahead, mainly in our solar business, interest rate volatility and uncertainty regarding public policy, particularly tax reform, has our attention. We need to stay disciplined in our approach to the business in the year ahead. We are focused on asset protection as much as business development. Finally, the Board has authorized us to amend our 2017 repurchase plan during the next open trading window to reflect a boost in the maximum price at which we may buy back stock to 115% of our most recently published Book Value per share, or $23.86.”

Technical Analysis:

The average true range of the stock is recorded at 0.34 and the relative strength index of the stock stands 34.16. The stock price is going above to its 52-week low with 47.75% and down from its 52-week high with -6.15%.

The stock has shown weekly performance of -3.39% and monthly performance stands at -3.61%. The stock price is trading upbeat from its 200 days moving average with 12.98% and down from 50 days moving average with -0.67%.

Analyst recommendation for this stock stands at 0.00.

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