ARMOUR Residential REIT Sees Unusually High Options Volume (NYSE:ARR)


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ARMOUR Residential REIT, Inc. (NYSE:ARR) was the target of some unusual options trading on Wednesday. Stock investors purchased 6,066 call options on the stock. This is an increase of approximately 2,356% compared to the average daily volume of 247 call options.

Several brokerages have issued reports on ARR. BidaskClub lowered ARMOUR Residential REIT from a “hold” rating to a “sell” rating in a report on Thursday, December 31st. Zacks Investment Research cut shares of ARMOUR Residential REIT from a “hold” rating to a “sell” rating in a report on Monday, October 26th. Finally, ValuEngine raised shares of ARMOUR Residential REIT from a “strong sell” rating to a “sell” rating in a research note on Tuesday, January 5th. Four equities research analysts have rated the stock with a sell rating and three have assigned a hold rating to the stock. ARMOUR Residential REIT presently has an average rating of “Sell” and a consensus price target of $11.65.

In related news, CEO Jeffrey J. Zimmer sold 43,216 shares of the company’s stock in a transaction that occurred on Tuesday, December 22nd. The stock was sold at an average price of $10.57, for a total value of $456,793.12. Following the transaction, the chief executive officer now directly owns 137,862 shares in the company, valued at $1,457,201.34. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director John P. Hollihan III sold 9,721 shares of the company’s stock in a transaction on Monday, December 28th. The stock was sold at an average price of $10.79, for a total value of $104,889.59. Following the transaction, the director now owns 45,536 shares in the company, valued at $491,333.44. The disclosure for this sale can be found here. In the last three months, insiders sold 84,937 shares of company stock valued at $903,763. Insiders own 1.30% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Hexagon Capital Partners LLC purchased a new stake in ARMOUR Residential REIT in the 3rd quarter worth approximately $51,000. Handelsbanken Fonder AB purchased a new stake in ARMOUR Residential REIT in the 2nd quarter worth approximately $110,000. BNP Paribas Arbitrage SA lifted its holdings in ARMOUR Residential REIT by 215.7% in the 3rd quarter. BNP Paribas Arbitrage SA now owns 15,953 shares of the real estate investment trust’s stock worth $152,000 after buying an additional 10,900 shares during the period. Paloma Partners Management Co purchased a new stake in ARMOUR Residential REIT in the 3rd quarter worth approximately $178,000. Finally, Two Sigma Advisers LP purchased a new stake in ARMOUR Residential REIT in the 2nd quarter worth approximately $217,000. Institutional investors and hedge funds own 54.33% of the company’s stock.

ARR stock opened at $11.08 on Thursday. ARMOUR Residential REIT has a 1-year low of $4.95 and a 1-year high of $21.15. The stock’s fifty day simple moving average is $10.87 and its two-hundred day simple moving average is $9.96. The stock has a market cap of $717.21 million, a P/E ratio of -3.13 and a beta of 1.07.

ARMOUR Residential REIT (NYSE:ARR) last posted its quarterly earnings data on Wednesday, October 21st. The real estate investment trust reported $0.35 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.33 by $0.02. ARMOUR Residential REIT had a positive return on equity of 10.28% and a negative net margin of 68.21%. As a group, equities research analysts forecast that ARMOUR Residential REIT will post 1.35 earnings per share for the current year.

The business also recently announced a monthly dividend, which will be paid on Thursday, January 28th. Investors of record on Friday, January 15th will be issued a dividend of $0.10 per share. This represents a $1.20 annualized dividend and a yield of 10.83%. The ex-dividend date of this dividend is Thursday, January 14th. ARMOUR Residential REIT’s dividend payout ratio is presently 52.86%.

About ARMOUR Residential REIT

ARMOUR Residential REIT, Inc invests in residential mortgage backed securities in the United States. The company's securities portfolio primarily consists of the United States Government-sponsored entity's (GSE) and the Government National Mortgage Administration's issued or guaranteed securities backed by fixed rate, hybrid adjustable rate, and adjustable rate home loans, as well as unsecured notes and bonds issued by the GSE and the United States treasuries; and money market instruments.

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