American Capital Agency Corp. (AGNC) Cut to Sell at Zacks Investment Research
According to Zacks, “American Capital Agency continues to operate in a challenging interest rate and global economic environment. In fact, widespread volatility in the market has added to its woes and the company is anticipated to get no respite any time soon. As a result the stock price is susceptible to fluctuations. Amid this environment, though American Capital Agency continues to adjust its investment portfolio, it is expected that risk management would continue to be prioritized over incremental returns, at least in the short term. Nevertheless, the company’s acquisition of its external manager American Capital Mortgage Management is likely to lower the run-rate operating costs. Further, its share repurchase program is encouraging for shareholders.”
Other equities research analysts have also issued reports about the stock. Nomura lowered shares of American Capital Agency Corp. to a hold rating in a report on Saturday, July 9th. Keefe, Bruyette & Woods lowered shares of American Capital Agency Corp. from an outperform rating to a market perform rating and reduced their target price for the stock from $20.25 to $19.75 in a report on Tuesday, July 19th. Citigroup Inc. increased their target price on shares of American Capital Agency Corp. from $18.00 to $19.00 and gave the stock a neutral rating in a report on Wednesday, August 3rd. JPMorgan Chase & Co. reissued a neutral rating on shares of American Capital Agency Corp. in a research report on Thursday, August 4th. Finally, Bank of America Corp. raised shares of American Capital Agency Corp. from an underperform rating to a neutral rating in a research report on Wednesday, June 29th. Three equities research analysts have rated the stock with a sell rating, six have given a hold rating and seven have issued a buy rating to the company’s stock. American Capital Agency Corp. currently has an average rating of Hold and a consensus price target of $20.64.
Shares of American Capital Agency Corp. (NASDAQ:AGNC) opened at 19.30 on Thursday. American Capital Agency Corp. has a 1-year low of $15.69 and a 1-year high of $20.10. The firm’s market capitalization is $6.39 billion. The stock’s 50 day moving average is $19.37 and its 200 day moving average is $19.23.
American Capital Agency Corp. (NASDAQ:AGNC) last released its earnings results on Wednesday, July 27th. The real estate investment trust reported $0.73 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.51 by $0.22. American Capital Agency Corp. had a negative net margin of 103.59% and a positive return on equity of 9.64%. During the same quarter last year, the firm posted $0.60 EPS.
The firm also recently declared a oct 16 dividend, which will be paid on Tuesday, November 8th. Investors of record on Monday, October 31st will be paid a dividend of $0.18 per share. The ex-dividend date is Thursday, October 27th. American Capital Agency Corp.’s dividend payout ratio is currently -74.48%.
In related news, CEO Gary D. Kain sold 3,931 shares of the stock in a transaction on Friday, August 26th. The shares were sold at an average price of $19.76, for a total transaction of $77,676.56. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Peter J. Federico sold 1,643 shares of the stock in a transaction on Friday, August 26th. The stock was sold at an average price of $19.76, for a total transaction of $32,465.68. The disclosure for this sale can be found here. Corporate insiders own 0.21% of the company’s stock.
A number of hedge funds have recently modified their holdings of AGNC. Paradigm Asset Management Co. LLC boosted its stake in American Capital Agency Corp. by 5.0% in the second quarter. Paradigm Asset Management Co. LLC now owns 5,850 shares of the real estate investment trust’s stock valued at $116,000 after buying an additional 277 shares during the period. Invictus RG purchased a new stake in American Capital Agency Corp. during the second quarter valued at approximately $124,000. Daiwa SB Investments Ltd. boosted its stake in American Capital Agency Corp. by 8.6% in the second quarter. Daiwa SB Investments Ltd. now owns 9,490 shares of the real estate investment trust’s stock valued at $185,000 after buying an additional 750 shares during the period. Benjamin F. Edwards & Company Inc. boosted its stake in American Capital Agency Corp. by 2.0% in the second quarter. Benjamin F. Edwards & Company Inc. now owns 10,055 shares of the real estate investment trust’s stock valued at $199,000 after buying an additional 200 shares during the period. Finally, Stratos Wealth Partners LTD. purchased a new stake in American Capital Agency Corp. during the second quarter valued at approximately $202,000. Hedge funds and other institutional investors own 59.78% of the company’s stock.
About American Capital Agency Corp.
American Capital Agency Corp. is a real estate investment trust (REIT). The Company primarily invests on a leveraged basis in agency mortgage-backed securities (agency MBS). The Company’s investments consist of residential mortgage pass-through securities and collateralized mortgage obligations (CMOs) for which the principal and interest payments are guaranteed by a government-sponsored enterprise, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), or by the United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) (collectively, GSEs).
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