JonesTrading Issues Pessimistic Forecast for Annaly Capital Management (NYSE:NLY) Stock Price

Key Points

• JonesTrading cut Annaly Capital Management’s price target from $25 to $21 while maintaining a “buy” rating, implying approximately 16.8% upside from the stock’s $17.98 price. The broader analyst consensus remains “Moderate Buy,” with a $23.17 target.
• Annaly’s quarterly distribution earnings came in at $0.80 per share, exceeding the $0.77 consensus estimate, while revenue reached $1.93 billion. The company also declared a $0.75 quarterly dividend.
• Investor sentiment remains pressured by a roughly $1.0 billion GAAP net loss, book value of $17.86 per share, and increased leverage of 8.0 times, highlighting sensitivity to interest rates and mortgage-asset valuations.

Annaly Capital Management (NYSE:NLY - Get Free Report) had its price target decreased by analysts at JonesTrading from $25.00 to $21.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The firm presently has a "buy" rating on the real estate investment trust's stock. JonesTrading's price target would indicate a potential upside of 16.76% from the company's current price.

A number of other analysts have also recently commented on NLY. Piper Sandler lowered their price objective on shares of Annaly Capital Management from $25.00 to $21.50 and set an "overweight" rating for the company in a research report on Friday, October 9th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Annaly Capital Management in a research report on Tuesday, October 6th. Wells Fargo & Company dropped their price objective on Annaly Capital Management from $25.00 to $24.00 and set an "overweight" rating on the stock in a research note on Thursday, July 23rd. BTIG Research set a $21.00 target price on shares of Annaly Capital Management and gave the company a "buy" rating in a research note on Tuesday, October 6th. Finally, Zacks Research downgraded shares of Annaly Capital Management from a "strong-buy" rating to a "hold" rating in a report on Monday, August 31st. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $23.17.

Annaly Capital Management Stock Performance

Annaly Capital Management stock traded down $0.30 during trading hours on Wednesday, reaching $17.98. 16,030,700 shares of the company's stock traded hands, compared to its average volume of 8,367,094. Annaly Capital Management has a fifty-two week low of $17.70 and a fifty-two week high of $24.52. The firm has a market capitalization of $13.56 billion, a price-to-earnings ratio of 4.51, a PEG ratio of 1.39 and a beta of 1.21. The firm's 50 day moving average is $21.11 and its 200-day moving average is $21.88.

Annaly Capital Management (NYSE:NLY - Get Free Report) last released its earnings results on Tuesday, October 20th. The real estate investment trust reported $0.80 EPS for the quarter, topping analysts' consensus estimates of $0.77 by $0.03. Annaly Capital Management had a net margin of 43.66% and a return on equity of 16.00%. The firm had revenue of $1.93 billion during the quarter, compared to analyst estimates of $637.41 million. Analysts predict that Annaly Capital Management will post 3.09 EPS for the current year.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. B. Riley Wealth Advisors Inc. raised its stake in Annaly Capital Management by 866.1% during the third quarter. B. Riley Wealth Advisors Inc. now owns 161,005 shares of the real estate investment trust's stock worth $3,041,000 after acquiring an additional 144,339 shares in the last quarter. Andra AP fonden lifted its holdings in shares of Annaly Capital Management by 5,304.6% in the second quarter. Andra AP fonden now owns 262,393 shares of the real estate investment trust's stock worth $5,867,000 after acquiring an additional 257,538 shares during the last quarter. Hsbc Holdings PLC lifted its holdings in shares of Annaly Capital Management by 215.8% in the second quarter. Hsbc Holdings PLC now owns 858,481 shares of the real estate investment trust's stock worth $19,288,000 after acquiring an additional 586,611 shares during the last quarter. Renaissance Technologies LLC boosted its stake in shares of Annaly Capital Management by 72.1% in the 1st quarter. Renaissance Technologies LLC now owns 448,222 shares of the real estate investment trust's stock valued at $9,480,000 after purchasing an additional 187,707 shares in the last quarter. Finally, TD Asset Management Inc boosted its stake in shares of Annaly Capital Management by 25.1% in the 2nd quarter. TD Asset Management Inc now owns 519,768 shares of the real estate investment trust's stock valued at $11,622,000 after purchasing an additional 104,400 shares in the last quarter. Institutional investors own 51.56% of the company's stock.

More Annaly Capital Management News

Here are the key news stories impacting Annaly Capital Management this week:

• Positive Sentiment: Underlying earnings exceeded expectations: Third-quarter earnings available for distribution were $0.80 per share, above the $0.77 consensus estimate and up from $0.73 a year earlier. Net interest income also increased to $543.6 million from $488.2 million in the prior quarter. Annaly Q3 earnings beat
• Positive Sentiment: Dividend remained substantial: Annaly declared a quarterly common-stock dividend of $0.75 per share, below its $0.80 distribution earnings but supporting the stock’s income appeal. Annaly third-quarter results
• Positive Sentiment: Onslow Bay continued to expand: The business generated $5.8 billion in quarterly funding volume, providing a potential growth driver and diversification benefit for long-term investors. Annaly long-term investor takeaways
• Neutral Sentiment: Results were mixed: Revenue was reported at approximately $1.93 billion, while analysts had expected $637.4 million, but the headline figures were affected by investment and derivative valuation changes. The earnings beat therefore provides a better view of operating performance than GAAP net income alone.
• Negative Sentiment: Large GAAP loss and book-value decline are weighing on sentiment: Annaly reported a third-quarter net loss of about $1.00 billion, or $1.36 per share. Total other loss was $1.63 billion, including a $4.72 billion investment loss partly offset by a $3.07 billion derivatives gain. Book value per share was $17.86, below the stock’s recent trading level. Annaly third-quarter net loss
• Negative Sentiment: Leverage increased: GAAP leverage rose to 8.0 times from 7.4 times in the prior quarter, increasing sensitivity to interest rates, funding costs and changes in mortgage-asset valuations.

About Annaly Capital Management

Annaly Capital Management, Inc is a diversified capital manager and mortgage real estate investment trust listed on the New York Stock Exchange under the symbol NLY. The company primarily invests in and manages residential mortgage-related assets, seeking to generate income through interest-rate spreads, financing, and portfolio management.

Annaly's investment activities have historically focused on agency mortgage-backed securities, which are backed by federally sponsored entities or government agencies.

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