American Capital Agency Corp. (AGNC) Cut to Sell at Zacks Investment Research
American Capital Agency Corp. (NASDAQ:AGNC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Thursday.
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.”
AGNC has been the subject of a number of other research reports. Nomura downgraded American Capital Agency Corp. from a “buy” rating to a “neutral” rating and set a $21.00 price target for the company. in a research report on Friday, July 8th. JPMorgan Chase & Co. reissued a “hold” rating and set a $20.00 price objective on shares of American Capital Agency Corp. in a report on Friday, July 29th. Vetr raised American Capital Agency Corp. from a “hold” rating to a “buy” rating and set a $19.53 price objective on the stock in a report on Thursday, October 6th. Bank of America Corp. raised American Capital Agency Corp. from an “underperform” rating to a “neutral” rating in a report on Wednesday, June 29th. Finally, Citigroup Inc. raised their price objective on American Capital Agency Corp. from $18.00 to $19.00 and gave the company a “neutral” rating in a report on Wednesday, August 3rd. Three research analysts have rated the stock with a sell rating, six have given a hold rating and seven have assigned a buy rating to the stock. The stock presently has a consensus rating of “Hold” and an average price target of $20.64.
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Shares of American Capital Agency Corp. (NASDAQ:AGNC) traded up 1.20% during mid-day trading on Thursday, reaching $19.47. The company had a trading volume of 3,381,462 shares. The stock has a 50 day moving average price of $19.42 and a 200 day moving average price of $19.20. American Capital Agency Corp. has a 12-month low of $15.69 and a 12-month high of $20.10. The firm’s market capitalization is $6.45 billion.
American Capital Agency Corp. (NASDAQ:AGNC) last issued its quarterly earnings results on Wednesday, July 27th. The real estate investment trust reported $0.73 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.51 by $0.22. American Capital Agency Corp. had a positive return on equity of 9.64% and a negative net margin of 103.59%. During the same quarter in the prior year, the firm posted $0.60 earnings per share.
The business also recently disclosed a oct 16 dividend, which will be paid on Tuesday, November 8th. Shareholders 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 payout ratio is currently -74.48%.
In other American Capital Agency Corp. news, CFO Peter J. Federico sold 1,643 shares of American Capital Agency Corp. stock in a transaction dated Friday, August 26th. The stock was sold at an average price of $19.76, for a total transaction of $32,465.68. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Gary D. Kain sold 3,931 shares of American Capital Agency Corp. stock in a transaction dated Friday, August 26th. The shares were sold at an average price of $19.76, for a total value of $77,676.56. The disclosure for this sale can be found here. Company insiders own 0.21% of the company’s stock.
Several institutional investors have recently added to or reduced their stakes in AGNC. Paradigm Asset Management Co. LLC raised its position 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 worth $116,000 after buying an additional 277 shares during the last quarter. Invictus RG acquired a new position in shares of American Capital Agency Corp. during the second quarter valued at $124,000. Daiwa SB Investments Ltd. raised its position in shares of 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 in the last quarter. Benjamin F. Edwards & Company Inc. raised its position in shares of 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 in the last quarter. Finally, Stratos Wealth Partners LTD. acquired a new position in shares of American Capital Agency Corp. during the second quarter valued at $202,000. Institutional investors and hedge funds 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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