AGNC Investment Corp. (NASDAQ:AGNC) Stock Has Average Target Price of $10.89

Key Points

• Analyst sentiment is neutral: AGNC Investment has a consensus “Hold” rating from 11 analysts, with eight holds and three buys. The average 12-month price target is $10.89, above the reported opening price of $8.61.
• Shares have weakened amid lowered targets: AGNC recently traded near its 12-month low of $8.41, while several analysts reduced their price targets, including Piper Sandler to $10 and Wells Fargo and Keefe, Bruyette & Woods to $11.
• The company offers a high monthly dividend: AGNC declared a $0.12-per-share monthly dividend, equivalent to $1.44 annually and a reported 16.7% yield. Its latest quarterly EPS of $0.40 exceeded analysts’ $0.38 estimate.

Shares of AGNC Investment Corp. (NASDAQ:AGNC - Get Free Report) have been assigned a consensus recommendation of "Hold" from the eleven ratings firms that are presently covering the company, Marketbeat reports. Eight investment analysts have rated the stock with a hold recommendation and three have given a buy recommendation to the company. The average twelve-month price objective among analysts that have updated their coverage on the stock in the last year is $10.89.

AGNC has been the topic of several recent analyst reports. Weiss Ratings downgraded shares of AGNC Investment from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday, October 8th. Compass Point cut shares of AGNC Investment from a "buy" rating to a "neutral" rating and set a $11.50 target price for the company. in a research note on Friday, July 17th. Wells Fargo & Company lowered their target price on shares of AGNC Investment from $12.00 to $11.00 and set an "overweight" rating for the company in a research note on Thursday, July 23rd. Keefe, Bruyette & Woods cut their price target on AGNC Investment from $12.00 to $11.00 and set a "market perform" rating for the company in a report on Wednesday, July 22nd. Finally, Piper Sandler cut their price target on AGNC Investment from $12.00 to $10.00 and set an "overweight" rating for the company in a report on Friday.

Insider Activity at AGNC Investment

In other news, EVP Bernice Bell sold 5,000 shares of AGNC Investment stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $11.00, for a total value of $55,000.00. Following the completion of the sale, the executive vice president owned 406,947 shares of the company's stock, valued at $4,476,417. The trade was a 1.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.40% of the stock is currently owned by corporate insiders.

Institutional Trading of AGNC Investment

Hedge funds have recently added to or reduced their stakes in the business. Handelsbanken Fonder AB grew its position in AGNC Investment by 0.3% during the 2nd quarter. Handelsbanken Fonder AB now owns 353,300 shares of the real estate investment trust's stock worth $3,851,000 after purchasing an additional 900 shares in the last quarter. Davidson Trust Co. lifted its holdings in shares of AGNC Investment by 4.4% in the first quarter. Davidson Trust Co. now owns 23,341 shares of the real estate investment trust's stock valued at $234,000 after purchasing an additional 985 shares in the last quarter. Wedmont Private Capital boosted its position in shares of AGNC Investment by 1.4% in the second quarter. Wedmont Private Capital now owns 73,805 shares of the real estate investment trust's stock worth $821,000 after buying an additional 988 shares during the period. Spinnaker Investment Group LLC boosted its position in shares of AGNC Investment by 1.4% in the second quarter. Spinnaker Investment Group LLC now owns 75,595 shares of the real estate investment trust's stock worth $824,000 after buying an additional 1,014 shares during the period. Finally, NWF Advisory Services Inc. boosted its position in shares of AGNC Investment by 8.2% in the second quarter. NWF Advisory Services Inc. now owns 13,475 shares of the real estate investment trust's stock worth $147,000 after buying an additional 1,026 shares during the period. 38.28% of the stock is owned by institutional investors and hedge funds.

AGNC Investment Trading Down 0.8%

NASDAQ:AGNC opened at $8.61 on Wednesday. AGNC Investment has a 12-month low of $8.41 and a 12-month high of $12.19. The firm has a market cap of $10.21 billion, a price-to-earnings ratio of 4.53 and a beta of 1.36. The company's 50-day moving average is $10.13 and its two-hundred day moving average is $10.43.

AGNC Investment (NASDAQ:AGNC - Get Free Report) last issued its quarterly earnings results on Monday, July 20th. The real estate investment trust reported $0.40 EPS for the quarter, topping analysts' consensus estimates of $0.38 by $0.02. The business had revenue of $305.00 million during the quarter, compared to the consensus estimate of $1.06 billion. AGNC Investment had a net margin of 57.94% and a return on equity of 17.96%. During the same period in the previous year, the firm posted ($0.17) earnings per share. On average, equities research analysts forecast that AGNC Investment will post 1.60 earnings per share for the current fiscal year.

AGNC Investment Dividend Announcement

The firm also recently disclosed a monthly dividend, which will be paid on Tuesday, November 10th. Stockholders of record on Friday, October 30th will be issued a dividend of $0.12 per share. The ex-dividend date is Friday, October 30th. This represents a $1.44 annualized dividend and a dividend yield of 16.7%. AGNC Investment's dividend payout ratio (DPR) is 75.79%.

AGNC Investment Company Profile

AGNC Investment Corp. is an internally managed real estate investment trust that invests primarily in agency residential mortgage-backed securities. Its portfolio generally includes mortgage pass-through securities and collateralized mortgage obligations issued or guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae. Because these securities carry government or government-sponsored enterprise backing, the company's investment strategy focuses on interest-rate and prepayment risks rather than traditional residential credit risk.

AGNC finances its investments largely through repurchase agreements and uses interest-rate swaps, swaptions, and other hedging instruments to manage exposure to changing interest rates and funding costs.

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