Zacks Investment Research upgraded shares of AGNC Investment (NASDAQ:AGNC) from a hold rating to a strong-buy rating in a research note issued to investors on Wednesday, BenzingaRatingsTable reports. They currently have $16.00 price objective on the real estate investment trust’s stock.
According to Zacks, “AGNC Investment reported second-quarter 2020 net spread and dollar-roll income of 58 cents per share, beating the Zacks Consensus Estimate of 46 cents. Notably, high origination volume and Fed’s purchases have created an ideal backdrop for roll specialness, driving the company’s performance. Moreover, low interest rates and stability in the repo market also reduced the company’s aggregate funding cost. Further, over the past few quarters, the company reduced holdings in generic higher-coupon MBS, while adding lower coupon ones that have limited prepayment risks. Such prudent capital-allocation efforts also bode well for long-term growth. Going forward, reduction in average repo cost is expected to drive net interest margins. Moreover, shares of AGNC Investment have fallen narrower than the industry’s decline in the past year.”
Several other brokerages also recently weighed in on AGNC. Wedbush boosted their target price on AGNC Investment from $12.80 to $13.75 and gave the stock an outperform rating in a research note on Thursday, April 9th. ValuEngine lowered AGNC Investment from a sell rating to a strong sell rating in a research note on Friday, May 1st. Argus assumed coverage on shares of AGNC Investment in a research report on Wednesday, June 24th. They issued a buy rating and a $15.00 price objective for the company. Royal Bank of Canada raised shares of AGNC Investment from a sector perform rating to an outperform rating and dropped their target price for the stock from $18.00 to $15.00 in a research report on Wednesday, April 29th. Finally, Wells Fargo & Co reaffirmed an equal weight rating and issued a $14.00 price target on shares of AGNC Investment in a report on Friday, May 15th. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company’s stock. AGNC Investment currently has an average rating of Buy and an average target price of $14.98.
NASDAQ:AGNC opened at $13.60 on Wednesday. The company’s 50-day simple moving average is $13.15 and its 200-day simple moving average is $14.28. The company has a debt-to-equity ratio of 0.03, a quick ratio of 0.12 and a current ratio of 0.12. AGNC Investment has a fifty-two week low of $6.25 and a fifty-two week high of $19.65. The stock has a market capitalization of $7.61 billion, a P/E ratio of 5.89 and a beta of 0.88.
AGNC Investment (NASDAQ:AGNC) last posted its earnings results on Monday, July 27th. The real estate investment trust reported $0.58 EPS for the quarter, beating the Zacks’ consensus estimate of $0.46 by $0.12. AGNC Investment had a negative net margin of 109.14% and a positive return on equity of 14.48%. The company had revenue of $2.97 billion during the quarter, compared to analysts’ expectations of $287.39 million. During the same quarter in the prior year, the company posted $0.49 earnings per share. AGNC Investment’s revenue for the quarter was up 2310.6% compared to the same quarter last year. On average, research analysts forecast that AGNC Investment will post 2.1 EPS for the current year.
The firm also recently declared a jul 20 dividend, which will be paid on Tuesday, August 11th. Shareholders of record on Friday, July 31st will be issued a $0.12 dividend. This represents a yield of 11.3%. The ex-dividend date is Thursday, July 30th. AGNC Investment’s payout ratio is 66.67%.
In related news, CEO Gary D. Kain acquired 189,188 shares of AGNC Investment stock in a transaction on Wednesday, May 6th. The stock was acquired at an average price of $12.60 per share, for a total transaction of $2,383,768.80. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 0.32% of the stock is currently owned by company insiders.
A number of institutional investors have recently added to or reduced their stakes in AGNC. Comerica Bank increased its holdings in shares of AGNC Investment by 10.6% during the 2nd quarter. Comerica Bank now owns 96,069 shares of the real estate investment trust’s stock valued at $1,307,000 after purchasing an additional 9,190 shares in the last quarter. Orinda Asset Management LLC acquired a new stake in shares of AGNC Investment during the 2nd quarter valued at about $1,935,000. Royal London Asset Management Ltd. increased its stake in shares of AGNC Investment by 2.9% in the 2nd quarter. Royal London Asset Management Ltd. now owns 226,477 shares of the real estate investment trust’s stock valued at $2,927,000 after purchasing an additional 6,344 shares in the last quarter. Sigma Planning Corp raised its holdings in AGNC Investment by 27.9% in the 2nd quarter. Sigma Planning Corp now owns 24,784 shares of the real estate investment trust’s stock worth $320,000 after purchasing an additional 5,405 shares during the period. Finally, Botty Investors LLC boosted its position in AGNC Investment by 30.7% during the second quarter. Botty Investors LLC now owns 497,208 shares of the real estate investment trust’s stock worth $6,474,000 after purchasing an additional 116,741 shares in the last quarter. Institutional investors and hedge funds own 67.11% of the company’s stock.
About AGNC Investment
AGNC Investment Corp., formerly American Capital Agency Corp., is a real estate investment trust. The Company invests in agency residential mortgage-backed securities on a leveraged basis. Its 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).
Featured Article: Return On Assets
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for AGNC Investment Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for AGNC Investment and related companies with MarketBeat.com's FREE daily email newsletter.