Annaly Capital Management (NYSE:NLY) Posts Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• Earnings beat: Annaly reported EPS of $0.76 vs. consensus $0.74, beating estimates by $0.02 and posting a net margin of 34.02% with a 15.8% return on equity.
• Generous but risky dividend: the company declared a $0.70 quarterly dividend (annualized $2.80) for a ~12.4% yield, with a payout ratio of 100.72% (ex-dividend March 31, payable April 30).
• Mixed market signals: shares traded around $22.61 (market cap $16.24B, P/E 8.13) with a consensus "Moderate Buy" price target of $23.89, while insiders have been net sellers in recent months.

Annaly Capital Management (NYSE:NLY - Get Free Report) announced its quarterly earnings results on Tuesday. The real estate investment trust reported $0.76 EPS for the quarter, topping analysts' consensus estimates of $0.74 by $0.02, Zacks reports. Annaly Capital Management had a net margin of 34.02% and a return on equity of 15.80%.

Annaly Capital Management Trading Down 0.2%

NYSE NLY traded down $0.05 during trading hours on Tuesday, hitting $22.61. 7,003,554 shares of the company's stock traded hands, compared to its average volume of 8,131,878. The business's fifty day moving average price is $22.23 and its two-hundred day moving average price is $22.28. The firm has a market capitalization of $16.24 billion, a P/E ratio of 8.13, a P/E/G ratio of 7.09 and a beta of 1.23. Annaly Capital Management has a 52 week low of $17.76 and a 52 week high of $24.52.

Annaly Capital Management Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, April 30th. Investors of record on Tuesday, March 31st will be given a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a yield of 12.4%. The ex-dividend date is Tuesday, March 31st. Annaly Capital Management's payout ratio is 100.72%.

Analysts Set New Price Targets

NLY has been the subject of a number of research analyst reports. JPMorgan Chase & Co. reduced their price target on shares of Annaly Capital Management from $25.00 to $23.00 and set an "overweight" rating for the company in a research note on Thursday, April 16th. Royal Bank Of Canada lifted their price target on shares of Annaly Capital Management from $23.00 to $25.00 and gave the stock an "outperform" rating in a research note on Thursday, February 5th. Wall Street Zen lowered shares of Annaly Capital Management from a "hold" rating to a "sell" rating in a research note on Saturday, April 11th. JonesTrading lifted their price target on shares of Annaly Capital Management from $22.00 to $25.00 and gave the stock a "buy" rating in a research note on Thursday, January 29th. Finally, Argus upgraded shares of Annaly Capital Management to a "strong-buy" rating in a research note on Thursday, February 5th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $23.89.

Insider Activity at Annaly Capital Management

In other Annaly Capital Management news, COO Steven Francis Campbell sold 26,491 shares of the company's stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $22.83, for a total value of $604,789.53. Following the completion of the transaction, the chief operating officer directly owned 178,000 shares in the company, valued at $4,063,740. This represents a 12.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Serena Wolfe sold 16,536 shares of the company's stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $23.14, for a total transaction of $382,643.04. Following the completion of the transaction, the chief financial officer owned 173,081 shares of the company's stock, valued at approximately $4,005,094.34. The trade was a 8.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 71,252 shares of company stock valued at $1,639,995 over the last 90 days. 0.22% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Annaly Capital Management

A number of hedge funds have recently modified their holdings of the company. Mcguire Capital Advisors Inc. bought a new position in shares of Annaly Capital Management in the fourth quarter worth approximately $31,000. Compound Planning Inc. boosted its position in shares of Annaly Capital Management by 54.8% in the fourth quarter. Compound Planning Inc. now owns 27,926 shares of the real estate investment trust's stock worth $624,000 after purchasing an additional 9,882 shares during the period. Invesco Ltd. boosted its position in shares of Annaly Capital Management by 6.2% in the fourth quarter. Invesco Ltd. now owns 2,862,209 shares of the real estate investment trust's stock worth $63,999,000 after purchasing an additional 165,854 shares during the period. Corient Private Wealth LLC boosted its position in shares of Annaly Capital Management by 27.5% in the fourth quarter. Corient Private Wealth LLC now owns 48,187 shares of the real estate investment trust's stock worth $1,077,000 after purchasing an additional 10,382 shares during the period. Finally, Royal Capital Wealth Management LLC boosted its position in shares of Annaly Capital Management by 50.0% in the fourth quarter. Royal Capital Wealth Management LLC now owns 14,850 shares of the real estate investment trust's stock worth $332,000 after purchasing an additional 4,950 shares during the period. 51.56% of the stock is currently owned by institutional investors.

Annaly Capital Management Company Profile

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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