AGNC Investment (NASDAQ:AGNC) Trading Up 1.1% - Still a Buy?

Key Points

• Shares rose 1.1% to $10.64 on Tuesday with volume about 46% below average, and analysts are mixed—MarketBeat shows a consensus rating of Hold with an average target of $10.91.
• AGNC declared a monthly dividend of $0.12 (annualized yield ~13.5%), but the payout ratio is high at 102.86%, raising questions about sustainability.
• Insiders have sold material stock (775,000 shares, roughly $9.25M in the last three months) even as institutional ownership is significant (~38.3%) and several large funds (Vanguard, Geode, State Street, Norges Bank) recently increased positions.

Shares of AGNC Investment Corp. (NASDAQ:AGNC - Get Free Report) were up 1.1% during trading on Tuesday . The stock traded as high as $10.64 and last traded at $10.64. Approximately 11,660,213 shares traded hands during trading, a decline of 46% from the average daily volume of 21,427,328 shares. The stock had previously closed at $10.52.

Analysts Set New Price Targets

Several research firms have issued reports on AGNC. Wall Street Zen downgraded shares of AGNC Investment from a "hold" rating to a "sell" rating in a report on Saturday, December 27th. JonesTrading downgraded shares of AGNC Investment from a "buy" rating to a "hold" rating in a report on Thursday, January 22nd. Barclays increased their price objective on shares of AGNC Investment from $9.00 to $10.00 and gave the company an "equal weight" rating in a report on Tuesday, January 6th. Royal Bank Of Canada raised their price target on shares of AGNC Investment from $11.00 to $13.00 and gave the stock an "outperform" rating in a research note on Thursday, January 29th. Finally, Piper Sandler decreased their price target on shares of AGNC Investment from $12.50 to $10.50 and set an "overweight" rating on the stock in a research note on Thursday, April 2nd. Four equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $10.91.

AGNC Investment Trading Up 1.1%

The stock has a market cap of $11.95 billion, a PE ratio of 7.60 and a beta of 1.38. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.21 and a current ratio of 0.21. The company's 50-day moving average price is $10.72 and its 200 day moving average price is $10.63.

AGNC Investment (NASDAQ:AGNC - Get Free Report) last released its quarterly earnings results on Monday, January 26th. The real estate investment trust reported $0.35 EPS for the quarter, missing the consensus estimate of $0.37 by ($0.02). The firm had revenue of $1.12 billion for the quarter, compared to analysts' expectations of $354.75 million. AGNC Investment had a net margin of 47.40% and a return on equity of 18.32%. On average, sell-side analysts forecast that AGNC Investment Corp. will post 1.61 EPS for the current fiscal year.

AGNC Investment Dividend Announcement

The business also recently declared a monthly dividend, which will be paid on Monday, May 11th. Stockholders of record on Thursday, April 30th will be paid a $0.12 dividend. This represents a c) dividend on an annualized basis and a dividend yield of 13.5%. The ex-dividend date of this dividend is Thursday, April 30th. AGNC Investment's payout ratio is 102.86%.

Insider Activity

In other news, EVP Bernice Bell sold 25,000 shares of the business'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 sale, the executive vice president directly owned 491,728 shares of the company's stock, valued at approximately $5,969,577.92. The trade was a 4.84% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Gary D. Kain sold 700,000 shares of the business's stock in a transaction that occurred on 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 trade represents a 24.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 775,000 shares of company stock valued at $9,246,000. Company insiders own 0.40% of the company's stock.

Institutional Investors Weigh In On AGNC Investment

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. raised its stake in shares of AGNC Investment by 1.4% in the 4th quarter. Vanguard Group Inc. now owns 97,745,127 shares of the real estate investment trust's stock valued at $1,047,828,000 after acquiring an additional 1,304,782 shares during the period. Geode Capital Management LLC increased its stake in AGNC Investment by 5.8% during the 4th quarter. Geode Capital Management LLC now owns 29,097,741 shares of the real estate investment trust's stock worth $312,275,000 after buying an additional 1,596,244 shares during the period. State Street Corp increased its stake in AGNC Investment by 6.4% during the 4th quarter. State Street Corp now owns 18,245,939 shares of the real estate investment trust's stock worth $197,774,000 after buying an additional 1,090,374 shares during the period. Norges Bank purchased a new stake in AGNC Investment during the 4th quarter worth approximately $141,830,000. Finally, Equity Investment Corp increased its stake in AGNC Investment by 1.8% during the 3rd quarter. Equity Investment Corp now owns 9,554,836 shares of the real estate investment trust's stock worth $93,542,000 after buying an additional 164,386 shares during the period. 38.28% of the stock is owned by hedge funds and other institutional investors.

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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