AGNC Investment Corp. (NASDAQ:AGNC) Stock Has Consensus Target Price of $10.89

Shares of AGNC Investment Corp. (NASDAQ:AGNC) have earned a consensus rating of “Hold” from the eleven brokerages that are covering the company, MarketBeat Ratings reports. Eight analysts have rated the stock with a hold recommendation and three have given a buy recommendation to the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $11.00.

AGNC has been the subject of a number of research analyst reports. Wells Fargo & Company lowered their price target on AGNC Investment from $12.00 to $11.00 and set an “overweight” rating for the company in a report on Thursday, July 23rd. Wall Street Zen downgraded AGNC Investment from a “hold” rating to a “sell” rating in a research report on Saturday. Keefe, Bruyette & Woods reduced their price objective on shares of AGNC Investment from $12.00 to $11.00 and set a “market perform” rating on the stock in a report on Wednesday, July 22nd. Weiss Ratings cut shares of AGNC Investment from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, October 8th. Finally, Piper Sandler decreased their target price on shares of AGNC Investment from $12.00 to $10.00 and set an “overweight” rating on the stock in a research report on Friday, October 9th.

Key Headlines Impacting AGNC Investment

Here are the key news stories impacting AGNC Investment this week:

• Positive Sentiment: Management expects an 18%–20% return on equity, signaling confidence that attractive Agency mortgage-backed securities valuations and improved market conditions could support future performance. AGNC Investment: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: AGNC raised $992 million through an at-the-market stock offering, giving the mortgage REIT additional capital to invest in Agency MBS and manage leverage, although the issuance may dilute existing shareholders. AGNC Investment: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Management indicated that Agency MBS valuations are becoming more attractive after the quarter’s selloff, potentially creating upside if mortgage spreads stabilize or tighten. AGNC Investment Q3 Earnings Call Highlights Mortgage Market Pressure
• Neutral Sentiment: Third-quarter adjusted earnings were $0.37 per share, broadly in line with some analyst estimates, while revenue of approximately $1.20 billion exceeded the consensus cited by MarketBeat. However, other estimates characterized earnings and revenue as misses, reflecting differing consensus benchmarks. AGNC Investment Earnings Results
• Negative Sentiment: Tangible book value fell 16.9% to $7.13 per share as wider mortgage spreads, higher funding costs and weak Agency MBS performance pressured the portfolio. Spread income also declined for the third consecutive quarter. AGNC’s Q3: Book Value Is Plunging
• Negative Sentiment: The quarter included a reported $1.36 billion loss, while persistent inflation and elevated interest rates remain risks because AGNC’s leveraged portfolio is highly sensitive to rates and mortgage spreads. Recent insider activity also showed selling rather than buying. Is AGNC Investment Corp a Buy After Its Latest Earnings Report?

AGNC Investment Stock Performance

AGNC stock opened at $8.80 on Wednesday. The firm has a market cap of $10.43 billion, a PE ratio of 880.88 and a beta of 1.36. The firm’s 50 day moving average price is $9.92 and its 200-day moving average price is $10.39. AGNC Investment has a one year low of $8.38 and a one year high of $12.19.

AGNC Investment (NASDAQ:AGNC) last released its quarterly earnings data on Monday, October 19th. The real estate investment trust reported $0.37 EPS for the quarter, meeting analysts’ consensus estimates of $0.37. AGNC Investment had a return on equity of 18.38% and a net margin of 2.45%. The firm had revenue of $1.20 billion for the quarter, compared to analysts’ expectations of $1.06 billion. Equities research analysts predict that AGNC Investment will post 1.60 EPS for the current fiscal year.

AGNC Investment Announces Dividend

The company also recently declared a monthly dividend, which will be paid on Tuesday, November 10th. Stockholders of record on Friday, October 30th will be given a dividend of $0.12 per share. This represents a $1.44 annualized dividend and a dividend yield of 16.4%. The ex-dividend date is Friday, October 30th. AGNC Investment’s dividend payout ratio (DPR) is currently 75.79%.

Insider Activity

In related news, EVP Bernice Bell sold 5,000 shares of the stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $11.00, for a total transaction of $55,000.00. Following the transaction, the executive vice president owned 406,947 shares of the company’s stock, valued at approximately $4,476,417. This represents a 1.21% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.40% of the company’s stock.

Hedge Funds Weigh In On AGNC Investment

Institutional investors have recently bought and sold shares of the company. BlackRock Inc. acquired a new stake in shares of AGNC Investment during the 2nd quarter worth about $704,076,000. Equity Investment Corp purchased a new stake in shares of AGNC Investment during the 2nd quarter worth approximately $106,123,000. Bank of America Corp DE purchased a new stake in shares of AGNC Investment during the 2nd quarter worth approximately $77,501,000. Bank of New York Mellon Corp purchased a new stake in shares of AGNC Investment during the 2nd quarter worth approximately $40,182,000. Finally, Advisors Capital Management LLC acquired a new position in shares of AGNC Investment in the 2nd quarter valued at $35,421,000. 38.28% of the stock is owned by institutional investors and hedge funds.

AGNC Investment Company Profile

AGNC Investment Corp. is a real estate investment trust (REIT) that invests primarily in residential mortgage pass-through securities and collateralized mortgage obligations for which principal and interest payments are guaranteed by a U.S. government-sponsored enterprise or a U.S. government agency. These investments are commonly referred to as agency mortgage-backed securities.

The company seeks to generate income through the difference between the yield on its investment portfolio and its borrowing costs, while managing interest-rate, prepayment and other market risks.