Annaly Capital Management (NYSE:NLY) Posts Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• Annaly Capital Management reported quarterly EPS of $0.79, topping analyst estimates by $0.04. Revenue also came in well above expectations at $892.86 million versus the consensus forecast of $639.80 million.
• The company announced a higher quarterly dividend of $0.75 per share, up from $0.70 previously. That translates to an annualized dividend of $3.00 and a yield of about 13.2%.
• Shares were slightly lower in Tuesday trading, even as analyst sentiment remained positive overall. The stock has a Moderate Buy consensus rating, with a consensus price target of $24.67.

Annaly Capital Management (NYSE:NLY - Get Free Report) issued its earnings results on Tuesday. The real estate investment trust reported $0.79 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.75 by $0.04, FiscalAI reports. The firm 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 34.33% and a return on equity of 15.92%.

Annaly Capital Management Stock Performance

Annaly Capital Management stock traded down $0.05 during mid-day trading on Tuesday, reaching $22.65. 5,877,753 shares of the company were exchanged, compared to its average volume of 7,659,165. The firm has a market cap of $16.60 billion, a P/E ratio of 7.65, a PEG ratio of 6.93 and a beta of 1.16. The business has a fifty day moving average of $22.13 and a 200 day moving average of $22.46. Annaly Capital Management has a 12-month low of $19.92 and a 12-month high of $24.52.

Annaly Capital Management Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Tuesday, June 30th will be paid a $0.75 dividend. This represents a $3.00 dividend on an annualized basis and a yield of 13.2%. This is a positive change 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 presently 101.35%.

Hedge Funds Weigh In On Annaly Capital Management

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Mcguire Capital Advisors Inc. purchased a new position in shares of Annaly Capital Management in the 4th quarter worth approximately $31,000. Atlas Capital Advisors Inc. acquired a new stake in shares of Annaly Capital Management in the 4th quarter worth $37,000. CIBC Private Wealth Group LLC boosted its position in shares of Annaly Capital Management by 23.9% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 2,859 shares of the real estate investment trust's stock worth $58,000 after purchasing an additional 552 shares in the last quarter. Los Angeles Capital Management LLC purchased a new position in Annaly Capital Management during the 4th quarter worth $60,000. Finally, Larson Financial Group LLC grew its stake in Annaly Capital Management by 72.2% during the 3rd quarter. Larson Financial Group LLC now owns 3,717 shares of the real estate investment trust's stock worth $75,000 after buying an additional 1,558 shares during the last quarter. Hedge funds and other institutional investors own 51.56% of the company's stock.

Analyst Ratings Changes

A number of brokerages have commented on NLY. 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 research note on Friday, April 24th. Piper Sandler boosted their price target on Annaly Capital Management from $24.50 to $25.00 and gave the company an "overweight" rating in a report on Thursday, July 2nd. BTIG Research set a $24.00 price objective on Annaly Capital Management in a research note on Wednesday, June 17th. JonesTrading restated a "buy" rating and set a $25.00 price objective on shares of Annaly Capital Management in a report on Wednesday, April 22nd. Finally, Wall Street Zen upgraded Annaly Capital Management from a "sell" rating to a "hold" rating in a report on Saturday, May 2nd. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $24.67.

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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