ARMOUR Residential REIT, Inc. (NYSE:ARR) Given Average Rating of "Hold" by Brokerages

Key Points

• Analyst consensus: Six brokerages rate ARMOUR Residential REIT an average "Hold" (1 sell, 2 hold, 3 buy) with a one-year average target price of $18.17.
• Generous dividend but high payout: The company declared a monthly $0.24 dividend (annualized yield ~16.6%), but the payout ratio is about 105.5%, indicating the dividend may be unsustainably high.
• Recent results: ARR reported Q4 EPS of $0.71, missing the $0.74 estimate, while showing a 40.3% net margin and trading near $17.32 with a PE of 6.34 and a 52-week range of $13.18–$19.31.

ARMOUR Residential REIT, Inc. (NYSE:ARR - Get Free Report) has received an average recommendation of "Hold" from the six research firms that are presently covering the stock, MarketBeat.com reports. One analyst has rated the stock with a sell rating, two have assigned a hold rating and three have issued a buy rating on the company. The average 1-year target price among brokers that have covered the stock in the last year is $18.1667.

A number of research analysts have recently weighed in on the company. Wall Street Zen lowered ARMOUR Residential REIT from a "hold" rating to a "sell" rating in a research report on Saturday, February 21st. Zacks Research upgraded ARMOUR Residential REIT from a "strong sell" rating to a "hold" rating in a research report on Friday, March 20th. JonesTrading dropped their target price on ARMOUR Residential REIT from $20.50 to $20.00 and set a "buy" rating for the company in a research report on Friday, February 20th. Weiss Ratings lowered ARMOUR Residential REIT from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, March 20th. Finally, Compass Point assumed coverage on shares of ARMOUR Residential REIT in a research note on Monday, December 15th. They issued a "buy" rating and a $18.50 price objective for the company.

ARMOUR Residential REIT Stock Up 0.7%

NYSE:ARR opened at $17.32 on Thursday. The stock has a market cap of $2.13 billion, a PE ratio of 6.34 and a beta of 1.42. The business's 50-day simple moving average is $17.34 and its two-hundred day simple moving average is $17.02. ARMOUR Residential REIT has a 52 week low of $13.18 and a 52 week high of $19.31.

ARMOUR Residential REIT (NYSE:ARR - Get Free Report) last issued its quarterly earnings data on Wednesday, February 18th. The real estate investment trust reported $0.71 earnings per share for the quarter, missing analysts' consensus estimates of $0.74 by ($0.03). The firm had revenue of $236.50 million for the quarter, compared to analysts' expectations of $62.34 million. ARMOUR Residential REIT had a net margin of 40.31% and a return on equity of 15.30%. Sell-side analysts anticipate that ARMOUR Residential REIT will post 3.8 earnings per share for the current fiscal year.

ARMOUR Residential REIT Announces Dividend

The firm also recently disclosed a monthly dividend, which will be paid on Wednesday, April 29th. Investors of record on Wednesday, April 15th will be paid a $0.24 dividend. The ex-dividend date of this dividend is Wednesday, April 15th. This represents a c) dividend on an annualized basis and a yield of 16.6%. ARMOUR Residential REIT's payout ratio is 105.49%.

Hedge Funds Weigh In On ARMOUR Residential REIT

A number of large investors have recently bought and sold shares of ARR. Quarry LP increased its position in shares of ARMOUR Residential REIT by 620.6% during the third quarter. Quarry LP now owns 1,823 shares of the real estate investment trust's stock worth $27,000 after purchasing an additional 1,570 shares in the last quarter. GAMMA Investing LLC increased its position in shares of ARMOUR Residential REIT by 217.5% during the fourth quarter. GAMMA Investing LLC now owns 1,721 shares of the real estate investment trust's stock worth $30,000 after purchasing an additional 1,179 shares in the last quarter. Signaturefd LLC increased its position in shares of ARMOUR Residential REIT by 210.9% during the fourth quarter. Signaturefd LLC now owns 1,766 shares of the real estate investment trust's stock worth $31,000 after purchasing an additional 1,198 shares in the last quarter. Allworth Financial LP increased its position in shares of ARMOUR Residential REIT by 40.7% during the fourth quarter. Allworth Financial LP now owns 2,369 shares of the real estate investment trust's stock worth $42,000 after purchasing an additional 685 shares in the last quarter. Finally, Danske Bank A S acquired a new position in shares of ARMOUR Residential REIT during the third quarter worth $42,000. Institutional investors own 54.17% of the company's stock.

About ARMOUR Residential REIT

ARMOUR Residential REIT NYSE: ARR is a mortgage real estate investment trust that was formed in 2008 to acquire and manage a portfolio of residential mortgage-backed securities (RMBS). The company's investments are primarily agency-sponsored and agency-guaranteed RMBS issued by U.S. government-sponsored enterprises, along with credit risk transfer securities and select non-agency residential and multifamily RMBS. By focusing on high-quality mortgage assets, ARMOUR Residential REIT seeks to generate stable income and preserve capital through diversified exposure to the U.S.

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