ARMOUR Residential REIT, Inc. (NYSE:ARR) Receives Average Rating of "Hold" from Analysts

Key Points

• Shares of ARMOUR Residential REIT have a consensus analyst rating of "Hold" from five firms (1 sell, 2 hold, 2 buy) with an average 12‑month price target of $18.50.
• The company declared a monthly dividend of $0.24 per share (ex‑dividend May 15), implying an annualized yield of 16.2% and a payout ratio of 150%, which may raise sustainability concerns.
• ARMOUR reported Q1 EPS of $0.76, slightly beating estimates ($0.73) while revenue of $70.7M missed consensus ($155.8M); analysts expect roughly $2.82 EPS for the year.

Shares of ARMOUR Residential REIT, Inc. (NYSE:ARR - Get Free Report) have been assigned a consensus recommendation of "Hold" from the five ratings firms that are currently covering the firm, MarketBeat.com reports. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and two have given a buy rating to the company. The average 12 month target price among brokerages that have updated their coverage on the stock in the last year is $18.50.

A number of research analysts recently commented on ARR shares. UBS Group restated a "neutral" rating and set a $18.00 price objective (up from $17.50) on shares of ARMOUR Residential REIT in a research note on Friday, April 24th. JonesTrading lowered their price objective on ARMOUR Residential REIT from $20.00 to $19.00 and set a "buy" rating for the company in a research note on Thursday, April 23rd. Weiss Ratings lowered ARMOUR Residential REIT from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, March 20th. Wall Street Zen lowered ARMOUR Residential REIT from a "hold" rating to a "sell" rating in a research report on Saturday, February 21st. Finally, Zacks Research upgraded ARMOUR Residential REIT from a "strong sell" rating to a "hold" rating in a research report on Friday, March 20th.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. Praxis Investment Management Inc. acquired a new position in ARMOUR Residential REIT during the 1st quarter worth $175,000. New York State Teachers Retirement System boosted its position in ARMOUR Residential REIT by 9.5% during the 1st quarter. New York State Teachers Retirement System now owns 67,245 shares of the real estate investment trust's stock worth $1,122,000 after acquiring an additional 5,856 shares during the period. Pictet Asset Management Holding SA boosted its position in ARMOUR Residential REIT by 16.0% during the 1st quarter. Pictet Asset Management Holding SA now owns 20,036 shares of the real estate investment trust's stock worth $334,000 after acquiring an additional 2,764 shares during the period. Sterling Capital Management LLC boosted its position in ARMOUR Residential REIT by 262.9% during the 1st quarter. Sterling Capital Management LLC now owns 23,632 shares of the real estate investment trust's stock worth $394,000 after acquiring an additional 17,120 shares during the period. Finally, Louisiana State Employees Retirement System acquired a new position in ARMOUR Residential REIT during the 1st quarter worth $827,000. Institutional investors and hedge funds own 54.17% of the company's stock.

ARMOUR Residential REIT Price Performance

Shares of ARR opened at $17.74 on Monday. The company has a market cap of $2.20 billion, a P/E ratio of 9.24 and a beta of 1.39. The stock has a fifty day moving average price of $17.27 and a 200 day moving average price of $17.30. ARMOUR Residential REIT has a 12 month low of $13.98 and a 12 month high of $19.31.

ARMOUR Residential REIT (NYSE:ARR - Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The real estate investment trust reported $0.76 EPS for the quarter, topping analysts' consensus estimates of $0.73 by $0.03. The firm had revenue of $70.71 million during the quarter, compared to the consensus estimate of $155.79 million. ARMOUR Residential REIT had a return on equity of 15.39% and a net margin of 27.43%. As a group, research analysts anticipate that ARMOUR Residential REIT will post 2.82 earnings per share for the current year.

ARMOUR Residential REIT Dividend Announcement

The firm also recently declared a monthly dividend, which will be paid on Thursday, May 28th. Shareholders of record on Friday, May 15th will be given a dividend of $0.24 per share. This represents a c) dividend on an annualized basis and a yield of 16.2%. The ex-dividend date is Friday, May 15th. ARMOUR Residential REIT's payout ratio is 150.00%.

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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