ARMOUR Residential REIT, Inc. (NYSE:ARR) Stock Now Rated "Hold" by Wall Street Analysts

Key Points

• Analysts have a consensus “Hold” rating on ARMOUR Residential REIT, with one sell, three hold, and two buy recommendations. The average 12-month price target is $16.56, although several analysts recently lowered their targets.
• ARR shares opened at $12.88, near their 12-month low of $12.27, while the company reported quarterly EPS of $0.71 and revenue of $121.7 million, slightly above estimates.
• The REIT declared a $0.24 monthly dividend, equivalent to $2.88 annually and a stated 22.4% yield. However, the company’s negative net margin and extremely high reported payout ratio underscore the dividend’s potential risk.

Shares of ARMOUR Residential REIT, Inc. (NYSE:ARR - Get Free Report) have been given a consensus rating of "Hold" by the six analysts that are currently covering the stock, MarketBeat Ratings reports. One research analyst has rated the stock with a sell rating, three have issued a hold rating and two have issued a buy rating on the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $16.56.

ARR has been the subject of several research reports. Wall Street Zen downgraded ARMOUR Residential REIT from a "sell" rating to a "strong sell" rating in a research report on Saturday. Weiss Ratings cut shares of ARMOUR Residential REIT from a "sell (d+)" rating to a "sell (d)" rating in a research report on Friday. Zacks Research raised shares of ARMOUR Residential REIT from a "strong sell" rating to a "hold" rating in a research report on Tuesday, July 21st. JonesTrading lowered their price objective on shares of ARMOUR Residential REIT from $19.00 to $15.25 and set a "buy" rating for the company in a research note on Thursday. Finally, B. Riley Financial dropped their price objective on shares of ARMOUR Residential REIT from $18.00 to $14.50 and set a "neutral" rating for the company in a report on Friday.

ARMOUR Residential REIT Trading Down 0.0%

Shares of NYSE ARR opened at $12.88 on Monday. The stock has a market capitalization of $1.91 billion, a PE ratio of -429.17 and a beta of 1.42. ARMOUR Residential REIT has a twelve month low of $12.27 and a twelve month high of $19.31. The stock has a fifty day simple moving average of $14.80 and a 200-day simple moving average of $16.23.

ARMOUR Residential REIT (NYSE:ARR - Get Free Report) last posted its earnings results on Wednesday, October 21st. The real estate investment trust reported $0.71 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.71. ARMOUR Residential REIT had a positive return on equity of 15.90% and a negative net margin of 5.09%. The firm had revenue of $121.70 million for the quarter, compared to analyst estimates of $119.84 million. On average, equities analysts predict that ARMOUR Residential REIT will post 2.91 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 Friday, November 27th. Shareholders of record on Monday, November 16th will be paid a $0.24 dividend. The ex-dividend date is Monday, November 16th. This represents a $2.88 annualized dividend and a dividend yield of 22.4%. ARMOUR Residential REIT's payout ratio is -9,600.00%.

Insider Activity at ARMOUR Residential REIT

In other news, Chairman Daniel Staton sold 35,583 shares of the stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $15.86, for a total value of $564,346.38. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. 0.19% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Independent Financial Group LLC purchased a new stake in ARMOUR Residential REIT during the 1st quarter worth about $1,458,000. First Trust Advisors LP raised its position in ARMOUR Residential REIT by 234.6% in the 1st quarter. First Trust Advisors LP now owns 664,247 shares of the real estate investment trust's stock valued at $11,080,000 after purchasing an additional 465,733 shares in the last quarter. Envestnet Asset Management Inc. purchased a new position in shares of ARMOUR Residential REIT in the 2nd quarter valued at about $6,536,000. Bank of New York Mellon Corp purchased a new position in shares of ARMOUR Residential REIT in the 2nd quarter valued at about $13,757,000. Finally, State Street Corp grew its position in shares of ARMOUR Residential REIT by 15.0% during the second quarter. State Street Corp now owns 4,745,078 shares of the real estate investment trust's stock worth $82,802,000 after buying an additional 619,020 shares in the last quarter. 54.17% of the stock is currently owned by hedge funds and other institutional investors.

Key ARMOUR Residential REIT News

Here are the key news stories impacting ARMOUR Residential REIT this week:

• Positive Sentiment: ARMOUR declared a $0.24 per-share November dividend on its common stock, maintaining an attractive income component for investors. ARMOUR Residential REIT Announces $0.24 November 2026 Dividend on Common Shares
• Positive Sentiment: JonesTrading retained a Buy rating, although it reduced its price target from $19.00 to $15.25. The revised target still implies meaningful upside from recent trading levels, signaling that the firm views the selloff as potentially excessive. JonesTrading stock recommendations
• Neutral Sentiment: A separate report raised the price target for ARMOUR’s preferred stock by 21.05% to $27.74. This may improve sentiment toward the company’s preferred securities, but it has limited direct impact on ARR common shares. ARMOUR preferred stock price target increased
• Negative Sentiment: B. Riley lowered its common-stock price target from $18.00 to $14.50 and shifted to a Neutral rating. Although the new target implies upside, the reduction reflects more cautious expectations. B. Riley stock recommendations
• Negative Sentiment: ARR’s third-quarter earnings were reported at $0.71 per share, below the Zacks consensus estimate of $0.73 and down from $0.72 a year earlier. The miss may pressure the stock despite revenue exceeding expectations. ARMOUR Residential REIT Q3 earnings

ARMOUR Residential REIT Company Profile

ARMOUR Residential REIT, Inc is a real estate investment trust that invests primarily in residential mortgage-backed securities. Its portfolio generally consists of securities issued or guaranteed by U.S. government-sponsored enterprises, including Fannie Mae and Freddie Mac, or by U.S. government agencies such as Ginnie Mae.

The company invests in a range of agency mortgage securities, including fixed-rate and adjustable-rate mortgage pass-through securities, collateralized mortgage obligations, specified pools and to-be-announced securities.

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