Bank of America Corp (NYSE: BAC)’s Merrill Lynch division upgraded shares of Hatters Financial (NYSE: HTS) from “neutral” to “underperform” citing interest rate improvements which will support a more constructive near-term view. The firm set a $27.00 price target on the company.
Hatteras Financial Corp. is an externally managed mortgage real estate investment trust (REIT). The Company invests primarily in adjustable-rate and hybrid adjustable-rate single-family residential mortgage pass-through securities guaranteed or issued by a United States Government agency, such as the Government National Mortgage Association (Ginnie Mae), or by a United States Government-sponsored entity, such as the Federal National Mortgage Association, (Fannie Mae), and the Federal Home Loan Mortgage Corporation, (Freddie Mac). The Company is externally managed and advised by its manager, Atlantic Capital Advisors LLC. The Company focuses on agency securities consisting of hybrid adjustable-rate residential mortgage loans with short effective durations. These agency securities principally consist of whole-pool, pass-through certificates that are backed by adjustable-rate mortgages (ARMs), and hybrid ARMs that have principal and interest payments guaranteed by Ginnie Mae.
Shares of HTS traded down 0.13% hitting $29.62 during mid-day trading on Tuesday.
