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

Key Points

• Stock traders bought 28,505 call options on Annaly on Friday, a 55% increase vs. the typical volume of 18,344 calls, signaling unusually high options activity.
• Insider selling intensified as COO Steven Francis Campbell sold 28,225 shares and CFO Serena Wolfe sold 16,536 shares on Feb. 18; insiders sold 71,252 shares over the past three months and now own 0.22% of the company.
• Annaly announced a quarterly dividend of $0.70 (annualized $2.80) for a 12.3% yield with an ex-dividend date of Mar. 31, and a payout ratio of about 100.72%.

Annaly Capital Management Inc (NYSE:NLY - Get Free Report) was the recipient of unusually large options trading on Friday. Stock traders bought 28,505 call options on the stock. This is an increase of 55% compared to the typical volume of 18,344 call options.

Insider Buying and Selling at Annaly Capital Management

In related news, COO Steven Francis Campbell sold 28,225 shares of the business's stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $23.12, for a total transaction of $652,562.00. Following the transaction, the chief operating officer directly owned 204,491 shares in the company, valued at $4,727,831.92. The trade was a 12.13% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Serena Wolfe sold 16,536 shares of the business's stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $23.14, for a total value of $382,643.04. Following the transaction, the chief financial officer owned 173,081 shares in the company, valued at approximately $4,005,094.34. This trade represents a 8.72% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 71,252 shares of company stock valued at $1,639,995. Corporate insiders own 0.22% of the company's stock.

Institutional Trading of Annaly Capital Management

Hedge funds have recently modified their holdings of the stock. Koshinski Asset Management Inc. raised its holdings in Annaly Capital Management by 1.9% in the 4th quarter. Koshinski Asset Management Inc. now owns 24,513 shares of the real estate investment trust's stock worth $548,000 after purchasing an additional 463 shares during the period. ProShare Advisors LLC raised its holdings in Annaly Capital Management by 1.8% in the 3rd quarter. ProShare Advisors LLC now owns 27,309 shares of the real estate investment trust's stock worth $552,000 after purchasing an additional 481 shares during the period. MCF Advisors LLC raised its holdings in Annaly Capital Management by 41.6% in the 3rd quarter. MCF Advisors LLC now owns 1,688 shares of the real estate investment trust's stock worth $35,000 after purchasing an additional 496 shares during the period. Fourth Dimension Wealth LLC raised its holdings in Annaly Capital Management by 76.9% in 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 during the period. Finally, GWN Securities Inc. raised its holdings in Annaly Capital Management by 5.0% in the 4th quarter. GWN Securities Inc. now owns 10,811 shares of the real estate investment trust's stock worth $242,000 after purchasing an additional 514 shares during the period. Hedge funds and other institutional investors own 51.56% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the company. Royal Bank Of Canada boosted their target price on Annaly Capital Management from $23.00 to $25.00 and gave the stock an "outperform" rating in a research note on Thursday, February 5th. JonesTrading boosted their target price on Annaly Capital Management from $22.00 to $25.00 and gave the stock a "buy" rating in a research note on Thursday, January 29th. Keefe, Bruyette & Woods boosted their target price on Annaly Capital Management from $23.25 to $25.00 and gave the stock an "outperform" rating in a research note on Friday, January 30th. Wells Fargo & Company restated an "overweight" rating and set a $25.00 target price (up from $23.00) on shares of Annaly Capital Management in a research note on Thursday, January 29th. Finally, BTIG Research upgraded Annaly Capital Management from a "neutral" rating to a "buy" rating and set a $25.00 target price on the stock in a research note on Tuesday, January 6th. One 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's stock. According to data from MarketBeat.com, Annaly Capital Management has an average rating of "Moderate Buy" and a consensus price target of $23.89.

Annaly Capital Management Price Performance

NYSE:NLY traded up $0.55 during midday trading on Friday, hitting $22.69. The company's stock had a trading volume of 1,852,149 shares, compared to its average volume of 8,139,102. Annaly Capital Management has a fifty-two week low of $17.39 and a fifty-two week high of $24.52. The firm has a market cap of $16.30 billion, a P/E ratio of 8.16, a P/E/G ratio of 6.96 and a beta of 1.23. The firm's 50 day moving average is $22.24 and its 200-day moving average is $22.23.

Annaly Capital Management (NYSE:NLY - Get Free Report) last announced its quarterly earnings data on Wednesday, January 28th. The real estate investment trust reported $0.74 EPS for the quarter, beating the consensus estimate of $0.72 by $0.02. Annaly Capital Management had a net margin of 34.02% and a return on equity of 15.80%. The business had revenue of $1.06 billion during the quarter, compared to analysts' expectations of $567.67 million. As a group, analysts forecast that Annaly Capital Management will post 2.81 EPS for the current year.

Annaly Capital Management Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Shareholders of record on Tuesday, March 31st will be paid a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a yield of 12.3%. The ex-dividend date is Tuesday, March 31st. Annaly Capital Management's payout ratio is presently 100.72%.

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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