AGNC Investment (NASDAQ:AGNC) Releases Earnings Results, Beats Estimates By $0.02 EPS

AGNC Investment (NASDAQ:AGNC) issued its quarterly earnings results on Monday. The real estate investment trust reported $0.40 earnings per share for the quarter, topping analysts’ consensus estimates of $0.38 by $0.02, Zacks reports. AGNC Investment had a return on equity of 18.20% and a net margin of 57.94%.The company had revenue of $305.00 million for the quarter, compared to analyst estimates of $1.06 billion. During the same quarter in the prior year, the company posted ($0.17) EPS.

AGNC Investment Stock Performance

Shares of AGNC stock opened at $10.78 on Wednesday. AGNC Investment has a 1 year low of $9.11 and a 1 year high of $12.19. The business’s fifty day moving average is $10.60 and its 200-day moving average is $10.82. The stock has a market cap of $12.37 billion, a PE ratio of 5.67 and a beta of 1.31.

AGNC Investment Announces Dividend

The company also recently declared a monthly dividend, which will be paid on Tuesday, August 11th. Shareholders of record on Friday, July 31st will be paid a dividend of $0.12 per share. This represents a c) dividend on an annualized basis and a yield of 13.4%. The ex-dividend date of this dividend is Friday, July 31st. AGNC Investment’s dividend payout ratio (DPR) is presently 75.79%.

Insider Activity

In other news, Director Donna Blank sold 22,000 shares of AGNC Investment stock in a transaction that occurred on Wednesday, May 6th. The shares were sold at an average price of $10.78, for a total value of $237,160.00. Following the transaction, the director directly owned 96,471 shares of the company’s stock, valued at $1,039,957.38. This trade represents a 18.57% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Peter J. Federico sold 64,412 shares of the company’s stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $11.08, for a total transaction of $713,684.96. Following the completion of the sale, the chief executive officer owned 1,927,083 shares of the company’s stock, valued at approximately $21,352,079.64. This trade represents a 3.23% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 215,234 shares of company stock worth $2,364,022. 0.40% of the stock is owned by company insiders.

Institutional Trading of AGNC Investment

A number of hedge funds have recently modified their holdings of the business. WealthCollab LLC acquired a new stake in shares of AGNC Investment in the third quarter worth $33,000. National Bank of Canada FI raised its position in AGNC Investment by 100.9% during the third quarter. National Bank of Canada FI now owns 3,365 shares of the real estate investment trust’s stock valued at $33,000 after buying an additional 1,690 shares during the period. WFA of San Diego LLC acquired a new position in AGNC Investment during the second quarter valued at $37,000. Los Angeles Capital Management LLC purchased a new stake in AGNC Investment in the 4th quarter worth about $43,000. Finally, UMB Bank n.a. lifted its stake in AGNC Investment by 2,603.2% in the 4th quarter. UMB Bank n.a. now owns 5,028 shares of the real estate investment trust’s stock worth $54,000 after acquiring an additional 4,842 shares in the last quarter. Hedge funds and other institutional investors own 38.28% of the company’s stock.

Wall Street Analyst Weigh In

AGNC has been the subject of several analyst reports. Compass Point lowered AGNC Investment from a “buy” rating to a “neutral” rating and set a $11.50 target price for the company. in a research note on Friday, July 17th. JPMorgan Chase & Co. reissued a “neutral” rating and issued a $11.50 price objective (up from $11.00) on shares of AGNC Investment in a research report on Friday, July 17th. Wall Street Zen upgraded AGNC Investment from a “sell” rating to a “hold” rating in a research note on Saturday, April 25th. UBS Group lifted their price target on shares of AGNC Investment from $10.50 to $11.00 and gave the company a “neutral” rating in a report on Friday, April 24th. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $12.00 target price on shares of AGNC Investment in a research report on Friday, April 24th. Three research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $11.33.

Key Headlines Impacting AGNC Investment

Here are the key news stories impacting AGNC Investment this week:

• Positive Sentiment: AGNC posted Q2 EPS of $0.40, topping the consensus estimate of $0.38 and improving from $0.38 a year ago; the company also reported stronger return on equity and book value trends. Article Title
• Positive Sentiment: Management’s earnings call and presentation emphasized strong returns and portfolio growth, which may support the view that AGNC is executing well operationally despite a tougher rate environment. Article Title
• Neutral Sentiment: Coverage focused on AGNC as a high-yield dividend stock, reinforcing investor interest in the REIT’s income stream rather than a major new catalyst. Article Title
• Negative Sentiment: Despite the earnings beat, the stock fell as revenue missed expectations and investors reacted to higher funding costs and rising prepayments, both of which can pressure mortgage REIT profitability. Article Title

About AGNC Investment

AGNC Investment Corp. is a self-managed real estate investment trust (REIT) that primarily acquires and manages a portfolio of residential mortgage-backed securities guaranteed by U.S. government-sponsored enterprises such as Ginnie Mae, Fannie Mae and Freddie Mac. The company employs a leveraged total return strategy, borrowing against its securities to enhance income potential while using interest rate hedges to manage risk. AGNC’s investment objective is to generate attractive monthly dividends and long-term capital appreciation for its shareholders.

Founded in 2008 and headquartered in Bethesda, Maryland, AGNC focuses exclusively on U.S.