AGNC Investment Stock Price Moves Up 0.2% - Future Prospects?

AGNC Investment Corp. (NASDAQ:AGNC) saw its stock price increase by 0.2% during the mid-day trading session on Friday. The stock peaked at $10.39 and ended the day at the same price. Approximately 1,234,505 shares were traded, which is a significant drop of 90% compared to the average daily trading volume of 12,937,135 shares. The stock had closed at $10.37 previously.

New Analyst Price Targets

Various equity research analysts have recently evaluated AGNC Investment stock. JMP Securities reaffirmed a "market perform" rating on August 28. On the contrary, StockNews.com lowered its rating from "hold" to "sell" on Thursday. JPMorgan Chase & Co. increased their price target from $9.50 to $10.00, issuing an "overweight" rating on July 16. Meanwhile, Maxim Group changed their rating from "buy" to "hold" on July 24. Additionally, Wells Fargo upgraded AGNC from an "equal weight" rating to "overweight" and raised their price target from $10.00 to $12.00 on September 20. Currently, one analyst rates the stock as a sell, four as hold, and seven as buy. MarketBeat indicates that AGNC has a consensus rating of "Moderate Buy" and an average price target of $10.33.

Stock Performance Review

The company's financial metrics indicate a quick ratio and current ratio both at 0.27, along with a debt-to-equity ratio of 0.01. The stock's fifty-day simple moving average stands at $10.24, while the 200-day average is $9.89. AGNC Investment boasts a market capitalization of $8.06 billion, a P/E ratio of 28.08, and a beta of 1.47.

AGNC reported its quarterly earnings on July 22, revealing earnings per share (EPS) of $0.53, slightly missing the consensus estimate of $0.54 by $0.01. The firm generated $695.00 million in revenue, surpassing the anticipated $643.29 million. Additionally, AGNC reported a net margin of 16.15% and a return on equity of 26.21%. The company's revenue increased by 52.1% year-over-year, compared to $0.67 EPS from the same quarter last year. Analysts predict AGNC will achieve an annual EPS of 2.11.

Dividend Announcements

AGNC recently declared a dividend set for November 12, which will be distributed to investors of record on October 31. The dividend amount is $0.12 per share, with an ex-dividend date also scheduled for October 31. Currently, AGNC’s dividend payout ratio (DPR) is an exceptionally high 389.20%.

Insider Transactions

In other significant transactions, CFO Bernice Bell sold 5,000 shares on August 8 at an average price of $10.07, totaling $50,350. Following this sale, Bell retains 298,182 shares valued at approximately $3,002,692.74. This sale has not significantly changed her overall ownership, which is disclosed in a filing with the Securities & Exchange Commission. Currently, corporate insiders hold 0.52% of AGNC's stock.

Institutional Investments

A number of hedge funds have adjusted their holdings in AGNC. CIBC Asset Management Inc. raised its position by 5.4% in the second quarter, now holding 19,712 shares valued at $188,000. Avantax Advisory Services increased its holdings by 6.7% in the first quarter, amassing 16,847 shares worth $167,000. Paragon Capital Management Ltd boosted its shares by 3.6% in the third quarter, now owning 30,717 shares valued at $321,000. Moreover, Highlander Capital Management LLC raised its position by 8.1% in the first quarter, holding 15,940 shares valued at $158,000. Lastly, Oak Thistle LLC increased its position by 4.9% in the second quarter to hold 26,815 shares worth $256,000. Institutional investors currently hold 38.28% of the stock.

About AGNC Investment

AGNC Investment Corp., previously known as American Capital Agency Corp., is a real estate investment trust (REIT) that primarily invests in agency residential mortgage-backed securities on a leveraged basis. Its investments comprise residential mortgage pass-through securities and collateralized mortgage obligations (CMOs) guaranteed by government-sponsored enterprises such as Fannie Mae and Freddie Mac or by U.S. government agencies like Ginnie Mae.

Conclusion

Given the mixed evaluations from analysts and the company's financial metrics, potential investors may need to assess whether AGNC Investment presents a viable investment opportunity, keeping in mind the insights derived from its recent earnings report and analyst ratings.

Investment, Stocks, Analysis