AGNC Investment (NASDAQ:AGNC) Shares Up 1.6% After Dividend Announcement

Key Points

• Dividend: AGNC announced a $0.12 per-share dividend payable May 11 with an ex‑dividend/record date of April 30, implying a 13.7% annualized yield and a high payout ratio of 102.86%.
• Market reaction and valuation: shares rose about 1.6% to roughly $10.48 (intraday high $10.51) on midday volume of ~14.0M (down 36% vs. average), with a market cap of $11.8B and a P/E of 7.49.
• Analyst and insider context: the consensus rating is a "Hold" with an average price target of $10.91 amid mixed broker actions, and insiders sold about 775,000 shares last quarter while owning 0.40% of the company.

AGNC Investment Corp. (NASDAQ:AGNC - Get Free Report) shares shot up 1.6% on Thursday after the company announced a dividend. The stock traded as high as $10.51 and last traded at $10.48. 14,005,683 shares were traded during mid-day trading, a decline of 36% from the average session volume of 21,830,551 shares. The stock had previously closed at $10.32.The newly announced dividend which will be paid on Monday, May 11th. Investors of record on Thursday, April 30th will be paid a dividend of $0.12 per share. The ex-dividend date of this dividend is Thursday, April 30th. This represents a c) annualized dividend and a yield of 13.7%. AGNC Investment's payout ratio is 102.86%.

Analysts Set New Price Targets

A number of brokerages have commented on AGNC. BTIG Research lowered shares of AGNC Investment from a "buy" rating to a "neutral" rating in a report on Tuesday, January 6th. Royal Bank Of Canada lifted their target price on AGNC Investment from $11.00 to $13.00 and gave the stock an "outperform" rating in a research report on Thursday, January 29th. Piper Sandler cut their price target on AGNC Investment from $12.50 to $10.50 and set an "overweight" rating on the stock in a research note on Thursday, April 2nd. Wells Fargo & Company increased their price target on AGNC Investment from $10.00 to $12.00 and gave the company an "overweight" rating in a report on Wednesday, January 28th. Finally, JonesTrading lowered AGNC Investment from a "buy" rating to a "hold" rating in a research note on Thursday, January 22nd. Four equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $10.91.

AGNC Investment Trading Up 1.6%

The company has a debt-to-equity ratio of 0.01, a current ratio of 0.21 and a quick ratio of 0.21. The business's fifty day simple moving average is $10.78 and its 200 day simple moving average is $10.61. The stock has a market cap of $11.77 billion, a price-to-earnings ratio of 7.49 and a beta of 1.38.

AGNC Investment (NASDAQ:AGNC - Get Free Report) last issued its earnings results on Monday, January 26th. The real estate investment trust reported $0.35 earnings per share for the quarter, missing analysts' consensus estimates of $0.37 by ($0.02). AGNC Investment had a return on equity of 18.32% and a net margin of 47.40%.The business had revenue of $1.12 billion for the quarter, compared to analyst estimates of $354.75 million. On average, research analysts predict that AGNC Investment Corp. will post 1.61 EPS for the current year.

Insiders Place Their Bets

In other AGNC Investment news, EVP Kenneth L. Pollack sold 50,000 shares of AGNC Investment stock in a transaction that occurred on Wednesday, January 28th. The stock was sold at an average price of $12.11, for a total value of $605,500.00. Following the completion of the transaction, the executive vice president directly owned 552,297 shares in the company, valued at $6,688,316.67. The trade was a 8.30% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Bernice Bell sold 25,000 shares of the company's stock in a transaction that occurred on Wednesday, January 28th. The shares were sold at an average price of $12.14, for a total value of $303,500.00. Following the transaction, the executive vice president directly owned 491,728 shares of the company's stock, valued at $5,969,577.92. This trade represents a 4.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 775,000 shares of company stock valued at $9,246,000 over the last quarter. Insiders own 0.40% of the company's stock.

Institutional Investors Weigh In On AGNC Investment

Several large investors have recently added to or reduced their stakes in the stock. Wealthspire Advisors LLC boosted its holdings in shares of AGNC Investment by 0.9% during the fourth quarter. Wealthspire Advisors LLC now owns 104,287 shares of the real estate investment trust's stock valued at $1,118,000 after acquiring an additional 907 shares during the period. Choreo LLC increased its holdings in shares of AGNC Investment by 5.0% in the 3rd quarter. Choreo LLC now owns 20,784 shares of the real estate investment trust's stock worth $206,000 after acquiring an additional 985 shares during the period. Lido Advisors LLC increased its holdings in shares of AGNC Investment by 10.4% in the 4th quarter. Lido Advisors LLC now owns 11,152 shares of the real estate investment trust's stock worth $112,000 after acquiring an additional 1,046 shares during the period. Sound Income Strategies LLC lifted its position in AGNC Investment by 61.1% in the 4th quarter. Sound Income Strategies LLC now owns 2,762 shares of the real estate investment trust's stock valued at $30,000 after purchasing an additional 1,048 shares during the last quarter. Finally, Motiv8 Investments LLC boosted its stake in AGNC Investment by 6.0% during the 4th quarter. Motiv8 Investments LLC now owns 18,621 shares of the real estate investment trust's stock valued at $200,000 after purchasing an additional 1,049 shares during the period. 38.28% of the stock is owned by institutional investors and hedge funds.

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.

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