Annaly Capital Management Target of Unusually High Options Trading (NYSE:NLY)

Key Points

• Annaly Capital Management experienced an unusual surge in options trading, with 16,701 call options purchased, marking a 66% increase over its usual volume.
• Several hedge funds, including Vanguard Group and Northern Trust Corp, have significantly increased their stakes in Annaly, reflecting growing institutional interest in the stock.
• The company recently declared a $0.70 quarterly dividend, yielding 13.6%, with a payout ratio of 277.23%, indicating a strong commitment to returning value to shareholders.

Annaly Capital Management Inc (NYSE:NLY - Get Free Report) was the target of unusually large options trading on Tuesday. Stock investors bought 16,701 call options on the company. Thisrepresentsanincreaseof66% compared to the typical daily volume of 10,052 call options.

Wall Street Analyst Weigh In

A number of analysts recently commented on the company. Keefe, Bruyette & Woods lifted their price target on Annaly Capital Management from $20.50 to $21.50 and gave the stock an "outperform" rating in a report on Friday, July 25th. Piper Sandler dropped their price target on Annaly Capital Management from $21.50 to $21.00 and set an "overweight" rating on the stock in a report on Friday, May 2nd. Royal Bank Of Canada dropped their price target on Annaly Capital Management from $22.00 to $21.00 and set an "outperform" rating on the stock in a report on Tuesday, May 27th. UBS Group reiterated a "neutral" rating and set a $20.00 price target (up from $18.00) on shares of Annaly Capital Management in a report on Thursday, July 10th. Finally, Jones Trading reissued a "buy" rating and issued a $21.00 target price on shares of Annaly Capital Management in a research report on Thursday, July 24th. Three research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company's stock. According to MarketBeat.com, Annaly Capital Management presently has an average rating of "Moderate Buy" and a consensus target price of $20.72.

Annaly Capital Management Stock Performance

Shares of NYSE NLY traded down $0.04 during mid-day trading on Thursday, hitting $20.83. The company had a trading volume of 5,067,980 shares, compared to its average volume of 6,659,961. The company has a market capitalization of $13.37 billion, a price-to-earnings ratio of 20.62, a P/E/G ratio of 4.94 and a beta of 1.20. Annaly Capital Management has a 1 year low of $16.59 and a 1 year high of $22.11. The company has a current ratio of 0.11, a quick ratio of 0.11 and a debt-to-equity ratio of 0.21. The stock's 50-day moving average price is $19.83 and its 200-day moving average price is $19.93.

Annaly Capital Management (NYSE:NLY - Get Free Report) last announced its quarterly earnings results on Wednesday, July 23rd. The real estate investment trust reported $0.73 earnings per share for the quarter, beating the consensus estimate of $0.72 by $0.01. The company had revenue of $273.20 million during the quarter, compared to analysts' expectations of $237.00 million. Annaly Capital Management had a return on equity of 15.53% and a net margin of 13.76%. On average, sell-side analysts forecast that Annaly Capital Management will post 2.81 earnings per share for the current year.

Annaly Capital Management Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Monday, June 30th were given a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a yield of 13.4%. The ex-dividend date was Monday, June 30th. Annaly Capital Management's payout ratio is presently 277.23%.

Hedge Funds Weigh In On Annaly Capital Management

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Jupiter Wealth Management LLC grew its position in Annaly Capital Management by 3.4% during the second quarter. Jupiter Wealth Management LLC now owns 16,621 shares of the real estate investment trust's stock worth $347,000 after buying an additional 551 shares in the last quarter. California State Teachers Retirement System grew its position in Annaly Capital Management by 27.2% during the second quarter. California State Teachers Retirement System now owns 1,289,752 shares of the real estate investment trust's stock worth $24,273,000 after buying an additional 276,052 shares in the last quarter. Raymond James Financial Inc. grew its position in Annaly Capital Management by 6.1% during the second quarter. Raymond James Financial Inc. now owns 871,724 shares of the real estate investment trust's stock worth $16,406,000 after buying an additional 50,248 shares in the last quarter. Bayesian Capital Management LP purchased a new position in Annaly Capital Management during the second quarter worth about $856,000. Finally, FJ Capital Management LLC purchased a new position in Annaly Capital Management during the second quarter worth about $994,000. 51.56% of the stock is currently owned by hedge funds and other institutional investors.

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.