ARMOUR Residential REIT (NYSE:ARR) Shares Pass Above Two Hundred Day Moving Average - What's Next?

Key Points

• ARMOUR Residential REIT (ARR) shares crossed above their 200‑day moving average ($17.28) on Thursday, trading as high as $17.61 and last at $17.515 with about 2.94 million shares changing hands.
• The company declared a monthly dividend of $0.24 per share payable May 28 (record May 15), implying a ~16.4% yield and a payout ratio of 150%.
• Analyst sentiment is mixed with a consensus Hold and average target of $18.50; ARR beat quarterly EPS ($0.76 vs. $0.73) but reported revenue well below expectations, and institutional ownership is roughly 54%.

ARMOUR Residential REIT, Inc. (NYSE:ARR - Get Free Report) crossed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $17.28 and traded as high as $17.61. ARMOUR Residential REIT shares last traded at $17.5150, with a volume of 2,940,762 shares traded.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on ARR shares. Zacks Research raised shares of ARMOUR Residential REIT from a "strong sell" rating to a "hold" rating in a report on Friday, March 20th. UBS Group reiterated a "neutral" rating and set a $18.00 target price (up from $17.50) on shares of ARMOUR Residential REIT in a research report on Friday, April 24th. JonesTrading decreased their price target on shares of ARMOUR Residential REIT from $20.00 to $19.00 and set a "buy" rating on the stock in a research note on Thursday, April 23rd. Weiss Ratings lowered shares of ARMOUR Residential REIT from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, March 20th. Finally, Wall Street Zen cut shares of ARMOUR Residential REIT from a "hold" rating to a "sell" rating in a research report on Saturday, February 21st. Two analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $18.50.

ARMOUR Residential REIT Stock Up 1.5%

The firm has a fifty day moving average of $17.27 and a 200-day moving average of $17.28. The firm has a market cap of $2.17 billion, a P/E ratio of 9.12 and a beta of 1.42.

ARMOUR Residential REIT (NYSE:ARR - Get Free Report) last announced its quarterly earnings data on Wednesday, April 22nd. The real estate investment trust reported $0.76 earnings per share for the quarter, topping the consensus estimate of $0.73 by $0.03. The firm had revenue of $70.71 million during the quarter, compared to analysts' expectations of $155.79 million. ARMOUR Residential REIT had a return on equity of 15.39% and a net margin of 27.43%. Sell-side analysts anticipate that ARMOUR Residential REIT, Inc. will post 2.82 EPS 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. Investors of record on Friday, May 15th will be paid a dividend of $0.24 per share. This represents a c) dividend on an annualized basis and a dividend yield of 16.4%. The ex-dividend date of this dividend is Friday, May 15th. ARMOUR Residential REIT's payout ratio is 150.00%.

Hedge Funds Weigh In On ARMOUR Residential REIT

A number of hedge funds and other institutional investors have recently bought and sold shares of ARR. GAMMA Investing LLC raised its position in shares of ARMOUR Residential REIT by 217.5% during the 4th quarter. GAMMA Investing LLC now owns 1,721 shares of the real estate investment trust's stock valued at $30,000 after acquiring an additional 1,179 shares during the last quarter. Signaturefd LLC lifted its stake in shares of ARMOUR Residential REIT by 210.9% in the 4th quarter. Signaturefd LLC now owns 1,766 shares of the real estate investment trust's stock valued at $31,000 after purchasing an additional 1,198 shares during the period. Quarry LP boosted its position in shares of ARMOUR Residential REIT by 620.6% in the 3rd 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 during the last quarter. Allworth Financial LP grew its stake 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 during the period. Finally, Danske Bank A S acquired a new stake in shares of ARMOUR Residential REIT during the third quarter worth $42,000. 54.17% of the stock is owned by institutional investors.

ARMOUR Residential REIT Company Profile

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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