Annaly Capital Management Inc (NYSE:NLY) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• Analyst sentiment is moderately bullish: Twelve brokerages rate Annaly Capital Management a consensus “Moderate Buy,” including seven buys, four holds and one strong buy. The average 12-month price target is $24.33 versus the reported share price of $22.59.
• Annaly exceeded quarterly expectations: The mortgage REIT reported $0.79 in quarterly EPS, beating estimates of $0.75, while revenue of $892.86 million surpassed the $639.80 million consensus forecast.
• The quarterly dividend increased: Annaly raised its dividend from $0.70 to $0.75 per share, equivalent to $3.00 annually and a 13.3% yield, with a payout ratio of 75.19%.

Shares of Annaly Capital Management Inc (NYSE:NLY - Get Free Report) have been given an average rating of "Moderate Buy" by the twelve brokerages that are currently covering the stock, MarketBeat Ratings reports. Four research analysts have rated the stock with a hold rating, seven have issued a buy rating and one has given a strong buy rating to the company. The average 12-month price target among brokers that have covered the stock in the last year is $24.3333.

NLY has been the topic of several research reports. Wall Street Zen raised Annaly Capital Management from a "sell" rating to a "hold" rating in a report on Saturday, May 2nd. Royal Bank Of Canada reissued an "outperform" rating and set a $25.00 price objective on shares of Annaly Capital Management in a research note on Wednesday, June 3rd. UBS Group restated a "neutral" rating and issued a $23.00 target price (up from $22.50) on shares of Annaly Capital Management in a report on Friday, April 24th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Annaly Capital Management in a research report on Friday, July 10th. Finally, BTIG Research set a $24.00 target price on Annaly Capital Management in a report on Wednesday, June 17th.

Annaly Capital Management Price Performance

Shares of NLY opened at $22.59 on Tuesday. The firm's 50 day moving average is $22.18 and its 200-day moving average is $22.45. The stock has a market capitalization of $16.55 billion, a P/E ratio of 5.66, a P/E/G ratio of 6.73 and a beta of 1.16. Annaly Capital Management has a 12-month low of $20.00 and a 12-month high of $24.52.

Annaly Capital Management (NYSE:NLY - Get Free Report) last released its earnings results on Tuesday, July 21st. The real estate investment trust reported $0.79 EPS for the quarter, beating the consensus estimate of $0.75 by $0.04. The business had revenue of $892.86 million during the quarter, compared to analyst estimates of $639.80 million. Annaly Capital Management had a net margin of 43.66% and a return on equity of 16.00%. As a group, equities research analysts forecast that Annaly Capital Management will post 3.03 EPS for the current fiscal year.

Annaly Capital Management Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Tuesday, June 30th will be given a $0.75 dividend. This represents a $3.00 annualized dividend and a dividend yield of 13.3%. This is an increase from Annaly Capital Management's previous quarterly dividend of $0.70. The ex-dividend date of this dividend is Tuesday, June 30th. Annaly Capital Management's payout ratio is 75.19%.

Institutional Investors Weigh In On Annaly Capital Management

Hedge funds have recently made changes to their positions in the company. Fourth Dimension Wealth LLC grew its position in Annaly Capital Management by 76.9% during the 4th quarter. Fourth Dimension Wealth LLC now owns 1,150 shares of the real estate investment trust's stock worth $26,000 after purchasing an additional 500 shares in the last quarter. Root Financial Partners LLC lifted its holdings in shares of Annaly Capital Management by 585.6% in the first quarter. Root Financial Partners LLC now owns 1,330 shares of the real estate investment trust's stock valued at $28,000 after purchasing an additional 1,136 shares in the last quarter. Camelot Portfolios LLC acquired a new stake in shares of Annaly Capital Management in the fourth quarter worth $29,000. Mcguire Capital Advisors Inc. acquired a new stake in shares of Annaly Capital Management in the fourth quarter worth $31,000. Finally, TD Private Client Wealth LLC boosted its position in shares of Annaly Capital Management by 361.3% in the fourth quarter. TD Private Client Wealth LLC now owns 1,504 shares of the real estate investment trust's stock worth $34,000 after buying an additional 1,178 shares during the period. Hedge funds and other institutional investors own 51.56% of the company's stock.

About Annaly Capital Management

Annaly Capital Management, Inc is a publicly traded real estate investment trust (REIT) that specializes in generating income through investment in mortgage-related assets. The company's core business activities include the acquisition, financing, and management of a diversified portfolio of agency and non-agency residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), and other real estate debt instruments. Annaly seeks to profit from the spread between the interest earned on its mortgage investments and its cost of funds, as well as from capital gains realized through active portfolio management.

Founded in 1997 and headquartered in New York City, Annaly has grown to become one of the largest mortgage REITs in the United States.

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