Federal Agricultural Mortgage (NYSE:AGM) Trading 6.6% Higher After Strong Earnings

Federal Agricultural Mortgage Co. (NYSE:AGM) shot up 6.6% during mid-day trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $206.15 and last traded at $208.50. 15,149 shares traded hands during trading, a decline of 52% from the average session volume of 31,388 shares. The stock had previously closed at $195.67.

The credit services provider reported $4.63 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.17 by $0.46. Federal Agricultural Mortgage had a return on equity of 20.14% and a net margin of 12.59%. The firm had revenue of $101.26 million for the quarter, compared to analyst estimates of $92.81 million. During the same quarter last year, the company posted $4.10 earnings per share.

Federal Agricultural Mortgage Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 31st. Investors of record on Friday, March 14th will be given a $1.50 dividend. The ex-dividend date of this dividend is Friday, March 14th. This represents a $6.00 dividend on an annualized basis and a yield of 2.88%. This is an increase from Federal Agricultural Mortgage’s previous quarterly dividend of $1.40. Federal Agricultural Mortgage’s dividend payout ratio (DPR) is presently 36.01%.

Insider Activity at Federal Agricultural Mortgage

In related news, CEO Bradford T. Nordholm sold 5,073 shares of the firm’s stock in a transaction dated Thursday, December 5th. The shares were sold at an average price of $213.37, for a total value of $1,082,426.01. Following the completion of the sale, the chief executive officer now owns 41,104 shares in the company, valued at $8,770,360.48. This trade represents a 10.99 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 2.58% of the stock is owned by insiders.

Institutional Investors Weigh In On Federal Agricultural Mortgage

Hedge funds have recently added to or reduced their stakes in the company. Boston Partners lifted its position in shares of Federal Agricultural Mortgage by 3.8% during the 4th quarter. Boston Partners now owns 415,716 shares of the credit services provider’s stock valued at $81,813,000 after acquiring an additional 15,140 shares during the period. Thrivent Financial for Lutherans lifted its position in shares of Federal Agricultural Mortgage by 1,589.4% during the 4th quarter. Thrivent Financial for Lutherans now owns 356,001 shares of the credit services provider’s stock valued at $70,114,000 after acquiring an additional 334,928 shares during the period. Principal Financial Group Inc. lifted its position in shares of Federal Agricultural Mortgage by 4.5% during the 4th quarter. Principal Financial Group Inc. now owns 333,975 shares of the credit services provider’s stock valued at $65,777,000 after acquiring an additional 14,274 shares during the period. Copeland Capital Management LLC lifted its position in shares of Federal Agricultural Mortgage by 2.5% during the 4th quarter. Copeland Capital Management LLC now owns 297,810 shares of the credit services provider’s stock valued at $58,654,000 after acquiring an additional 7,283 shares during the period. Finally, Captrust Financial Advisors lifted its position in shares of Federal Agricultural Mortgage by 12.4% during the 4th quarter. Captrust Financial Advisors now owns 255,198 shares of the credit services provider’s stock valued at $50,261,000 after acquiring an additional 28,215 shares during the period. Institutional investors and hedge funds own 68.03% of the company’s stock.

Federal Agricultural Mortgage Stock Performance

The stock’s 50-day moving average price is $196.77 and its 200-day moving average price is $194.42. The company has a debt-to-equity ratio of 1.58, a quick ratio of 0.49 and a current ratio of 0.49. The company has a market capitalization of $2.27 billion, a price-to-earnings ratio of 13.39, a P/E/G ratio of 1.59 and a beta of 1.08.

About Federal Agricultural Mortgage

Federal Agricultural Mortgage Corporation provides a secondary market for various loans made to borrowers in the United States. It operates through four segments: Corporate AgFinance, Farm & Ranch, Rural Utilities, and Renewable Energy. The company’s Agricultural Finance line of business engages in purchasing and retaining eligible loans and securities; guaranteeing the payment of principal and interest on securities that represent interests in or obligations secured by pools of eligible loans; servicing eligible loans; and issuing LTSPCs for eligible loans.