NEW YORK (TheStreet) -- JMP Securities lowered its rating on Altisource Residential Corp. (RESI) stock to "market perform" from "market outperform" on Wednesday. The firm has a $17 price target on the stock.
The downgrade comes after the U.S. Virgin Islands-based real estate investment trust (REIT) reported its 2015 fourth quarter results at the end of February.
Altisource Residential said it had a net loss of $1.18 per diluted share on revenue of $24.1 million. Analysts were expecting earnings of 18 cents per share on revenue of $71.8 million.
"Over the next two to five years, RESI will be focused on disposing non-performing loans (NPLs) and non-core properties to aggregate a single-family rental portfolio of over 20,000 homes. The transition into a single-family rental company will be difficult as we believe cash flow per share and the dividend will be negatively impacted near term," the firm said in an analyst note.
Shares of Altisource Residential closed higher by 1.31% to $11.61 on heavy trading volume on Wednesday.
About 1.37 million of the company's shares were traded today compared to its average volume of 555,639 shares per day.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
This is driven by several weaknesses, which should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks covered.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: RESIRESI data by YCharts