Annaly Capital Management (NYSE:NLY) Reaches New 12-Month High After Dividend Announcement

Key Points

• Annaly Capital Management shares reached a new 52-week high of $22.45 following a dividend announcement, with a dividend of $0.70 per share scheduled for payment on October 31st.
• The stock currently has a dividend yield of 12.7% and a high payout ratio of 277.23%, reflecting substantial dividend distribution relative to earnings.
• Seven analysts rate the stock as a "Buy," while four have a "Hold" rating, resulting in a consensus rating of "Moderate Buy" with an average price target of $20.83.

Shares of Annaly Capital Management Inc (NYSE:NLY - Get Free Report) reached a new 52-week high on Thursday following a dividend announcement from the company. The stock traded as high as $22.45 and last traded at $22.11, with a volume of 9814835 shares changing hands. The stock had previously closed at $22.27.

The newly announced dividend which will be paid on Friday, October 31st. Shareholders of record on Tuesday, September 30th will be issued a $0.70 dividend. This represents a $2.80 annualized dividend and a yield of 12.7%. The ex-dividend date of this dividend is Tuesday, September 30th. Annaly Capital Management's dividend payout ratio is presently 277.23%.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the stock. Keefe, Bruyette & Woods upped their price target on shares of Annaly Capital Management from $20.50 to $21.50 and gave the company an "outperform" rating in a report on Friday, July 25th. UBS Group upped their price target on shares of Annaly Capital Management from $20.00 to $21.00 and gave the company a "neutral" rating in a report on Wednesday, September 3rd. Royal Bank Of Canada upped their price target on shares of Annaly Capital Management from $21.00 to $23.00 and gave the company an "outperform" rating in a report on Monday. Zacks Research lowered shares of Annaly Capital Management from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 19th. Finally, Jones Trading reaffirmed a "buy" rating and issued a $21.00 price target on shares of Annaly Capital Management in a report on Thursday, July 24th. Seven analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $21.06.

Annaly Capital Management Stock Performance

The business's 50-day simple moving average is $20.78 and its two-hundred day simple moving average is $19.98. The firm has a market cap of $14.16 billion, a price-to-earnings ratio of 21.84, a P/E/G ratio of 5.21 and a beta of 1.24. The company has a quick ratio of 0.11, a current ratio of 0.11 and a debt-to-equity ratio of 0.21.

Annaly Capital Management (NYSE:NLY - Get Free Report) last issued its quarterly earnings data on Wednesday, July 23rd. The real estate investment trust reported $0.73 earnings per share for the quarter, topping analysts' consensus estimates of $0.72 by $0.01. The business had revenue of $273.20 million during the quarter, compared to the consensus estimate of $237.00 million. Annaly Capital Management had a net margin of 13.76% and a return on equity of 15.53%. As a group, sell-side analysts expect that Annaly Capital Management Inc will post 2.81 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Inlight Wealth Management LLC acquired a new position in shares of Annaly Capital Management in the first quarter worth about $25,000. Financial Gravity Companies Inc. acquired a new position in shares of Annaly Capital Management in the second quarter worth about $25,000. Financial Gravity Asset Management Inc. acquired a new position in shares of Annaly Capital Management in the first quarter worth about $28,000. Delos Wealth Advisors LLC acquired a new position in shares of Annaly Capital Management in the second quarter worth about $28,000. Finally, Twin Tree Management LP acquired a new position in shares of Annaly Capital Management during the 1st quarter worth about $29,000. Institutional investors and hedge funds own 51.56% of the company's stock.

About Annaly Capital Management

Annaly Capital Management, Inc, a diversified capital manager, engages in mortgage finance. The company invests in agency mortgage-backed securities collateralized by residential mortgages; non-agency residential whole loans and securitized products within the residential and commercial markets; mortgage servicing rights; agency commercial mortgage-backed securities; to-be-announced forward contracts; residential mortgage loans; and agency or private label credit risk transfer securities.