AGNC Investment (NASDAQ:AGNC) Trading Down 1.7% After Analyst Downgrade

Key Points

• AGNC shares fell 1.7% after JPMorgan cut its price target from $12.00 to $11.00 (JPMorgan still rates the stock "overweight"), with the stock trading as low as $10.55 and mid-day volume of 14.44M shares (down 32% vs. average).
• Company insiders sold a total of 775,000 shares (~$9.25M) in the last three months, including Director Gary D. Kain's sale of 700,000 shares, leaving insiders with just 0.40% ownership.
• AGNC declared a monthly dividend of $0.12 (paid May 11), implying an annualized yield of about 13.6%, but the dividend payout ratio is high at 102.86%, signaling distribution pressure relative to earnings.

AGNC Investment Corp. (NASDAQ:AGNC - Get Free Report) fell 1.7% on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $12.00 to $11.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. AGNC Investment traded as low as $10.55 and last traded at $10.56. 14,436,819 shares traded hands during mid-day trading, a decline of 32% from the average session volume of 21,192,689 shares. The stock had previously closed at $10.74.

AGNC has been the subject of several other reports. Royal Bank Of Canada raised their target price on AGNC Investment from $11.00 to $13.00 and gave the company an "outperform" rating in a research note on Thursday, January 29th. JonesTrading lowered shares of AGNC Investment from a "buy" rating to a "hold" rating in a research note on Thursday, January 22nd. BTIG Research lowered AGNC Investment from a "buy" rating to a "neutral" rating in a research report on Tuesday, January 6th. Keefe, Bruyette & Woods reaffirmed a "market perform" rating and set a $12.00 price target (up from $11.00) on shares of AGNC Investment in a report on Thursday, January 29th. Finally, Piper Sandler reduced their price objective on shares of AGNC Investment from $12.50 to $10.50 and set an "overweight" rating for the company in a report on Thursday, April 2nd. Four investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $11.03.

Insider Activity

In other AGNC Investment news, Director Gary D. Kain sold 700,000 shares of the company's stock in a transaction dated Thursday, January 29th. The shares were sold at an average price of $11.91, for a total transaction of $8,337,000.00. Following the completion of the sale, the director directly owned 2,189,091 shares in the company, valued at $26,072,073.81. This represents a 24.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Kenneth L. Pollack sold 50,000 shares of the stock in a transaction that occurred on Wednesday, January 28th. The shares were sold at an average price of $12.11, for a total value of $605,500.00. Following the completion of the sale, the executive vice president directly owned 552,297 shares of the company's stock, valued at $6,688,316.67. This represents a 8.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 775,000 shares of company stock worth $9,246,000 in the last three months. 0.40% of the stock is owned by insiders.

Institutional Investors Weigh In On AGNC Investment

A number of hedge funds have recently made changes to their positions in the company. GoalVest Advisory LLC bought a new position in AGNC Investment in the 4th quarter worth approximately $26,000. Sound Income Strategies LLC grew its holdings in AGNC Investment by 61.1% during the fourth 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 period. Atlantic Union Bankshares Corp bought a new stake in shares of AGNC Investment in the 3rd quarter valued at $29,000. Flagship Harbor Advisors LLC acquired a new stake in shares of AGNC Investment during the fourth quarter worth about $33,000. Finally, MassMutual Private Wealth & Trust FSB raised its holdings in AGNC Investment by 110.7% during the 4th quarter. MassMutual Private Wealth & Trust FSB now owns 3,251 shares of the real estate investment trust's stock worth $35,000 after buying an additional 1,708 shares during the period. Institutional investors and hedge funds own 38.28% of the company's stock.

AGNC Investment Trading Down 1.7%

The firm has a market capitalization of $11.86 billion, a price-to-earnings ratio of 7.54 and a beta of 1.38. The business's fifty day moving average is $10.69 and its 200 day moving average is $10.64. The company has a quick ratio of 0.21, a current ratio of 0.21 and a debt-to-equity ratio of 0.01.

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

AGNC Investment Dividend Announcement

The firm also recently declared a monthly dividend, which will be paid on Monday, May 11th. Investors of record on Thursday, April 30th will be paid a $0.12 dividend. The ex-dividend date is Thursday, April 30th. This represents a c) annualized dividend and a dividend yield of 13.6%. AGNC Investment's dividend payout ratio is 102.86%.

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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