Dynex Capital, Inc. (NYSE:DX) Stock Rated "Hold" by Wall Street Analysts

Key Points

• Analysts rate Dynex Capital “Hold” overall: Of five analysts, three recommend buying, one rates it a hold and one recommends selling. The average 12-month price target is $13.38, versus a recent price of $10.66.
• Quarterly results fell slightly short of expectations: Dynex reported earnings of $0.38 per share versus the $0.39 consensus estimate, while revenue of $101.56 million missed expectations of $113.48 million.
• The stock offers a high dividend but carries significant risk: Dynex declared a monthly dividend of $0.17, equivalent to a 19.1% annualized yield, while its payout ratio stood at 971.43%. Company insiders purchased 24,680 shares worth approximately $295,220 over the prior 90 days.

Shares of Dynex Capital, Inc. (NYSE:DX - Get Free Report) have earned a consensus rating of "Hold" from the five analysts that are currently covering the stock, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, one has assigned a hold recommendation and three have assigned a buy recommendation to the company. The average 1-year price target among analysts that have issued a report on the stock in the last year is $13.38.

Several brokerages have commented on DX. Weiss Ratings downgraded Dynex Capital from a "sell (d+)" rating to a "sell (d)" rating in a research report on Friday. Keefe, Bruyette & Woods reiterated an "outperform" rating on shares of Dynex Capital in a research note on Tuesday, October 20th. JonesTrading decreased their target price on Dynex Capital from $14.75 to $12.50 and set a "buy" rating for the company in a research report on Monday, October 19th. Finally, BTIG Research set a $12.00 target price on shares of Dynex Capital and gave the company a "buy" rating in a research note on Tuesday, October 6th.

Dynex Capital Stock Performance

DX opened at $10.66 on Friday. The stock has a market cap of $2.77 billion, a price-to-earnings ratio of 50.76 and a beta of 0.98. The stock's 50 day moving average price is $11.71 and its 200-day moving average price is $12.92. Dynex Capital has a one year low of $10.31 and a one year high of $14.93.

Dynex Capital (NYSE:DX - Get Free Report) last issued its quarterly earnings results on Monday, October 19th. The real estate investment trust reported $0.38 earnings per share for the quarter, missing the consensus estimate of $0.39 by ($0.01). Dynex Capital had a positive return on equity of 10.30% and a negative net margin of 4.65%. The business had revenue of $101.56 million during the quarter, compared to analysts' expectations of $113.48 million.

Dynex Capital Announces Dividend

The business also recently declared a monthly dividend, which will be paid on Monday, November 2nd. Investors of record on Thursday, October 22nd will be paid a $0.17 dividend. This represents a $2.04 annualized dividend and a yield of 19.1%. The ex-dividend date of this dividend is Thursday, October 22nd. Dynex Capital's dividend payout ratio (DPR) is currently 971.43%.

Insider Activity at Dynex Capital

In related news, CIO Terrence John Connelly, Jr. bought 2,500 shares of the company's stock in a transaction on Friday, September 25th. The shares were acquired at an average cost of $11.18 per share, for a total transaction of $27,950.00. Following the purchase, the executive directly owned 58,695 shares of the company's stock, valued at approximately $656,210.10. The trade was a 4.45% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Byron L. Boston bought 9,180 shares of Dynex Capital stock in a transaction dated Tuesday, October 20th. The shares were bought at an average cost of $10.89 per share, for a total transaction of $99,970.20. Following the completion of the transaction, the chief executive officer owned 892,747 shares of the company's stock, valued at approximately $9,722,014.83. This trade represents a 1.04% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased 24,680 shares of company stock worth $295,220 in the last 90 days. 0.76% of the stock is owned by corporate insiders.

Institutional Trading of Dynex Capital

Large investors have recently modified their holdings of the company. GraniteShares Advisors LLC raised its holdings in shares of Dynex Capital by 1.6% in the 3rd quarter. GraniteShares Advisors LLC now owns 203,627 shares of the real estate investment trust's stock valued at $2,268,000 after purchasing an additional 3,150 shares in the last quarter. ProShare Advisors LLC lifted its position in shares of Dynex Capital by 10.6% in the 3rd quarter. ProShare Advisors LLC now owns 31,788 shares of the real estate investment trust's stock worth $354,000 after purchasing an additional 3,047 shares during the period. Morling Financial Advisors LLC lifted its position in shares of Dynex Capital by 4.0% in the 3rd quarter. Morling Financial Advisors LLC now owns 90,726 shares of the real estate investment trust's stock worth $1,011,000 after purchasing an additional 3,498 shares during the period. Wedbush Securities Inc. boosted its stake in shares of Dynex Capital by 30.0% during the third quarter. Wedbush Securities Inc. now owns 15,947 shares of the real estate investment trust's stock valued at $178,000 after purchasing an additional 3,682 shares in the last quarter. Finally, SeaCrest Wealth Management LLC boosted its stake in shares of Dynex Capital by 5.5% during the third quarter. SeaCrest Wealth Management LLC now owns 97,749 shares of the real estate investment trust's stock valued at $1,089,000 after purchasing an additional 5,094 shares in the last quarter. Hedge funds and other institutional investors own 38.34% of the company's stock.

About Dynex Capital

Dynex Capital, Inc NYSE: DX is an internally managed real estate investment trust that invests in mortgage-related assets. The company primarily focuses on agency mortgage-backed securities, including securities backed by the U.S. government or government-sponsored enterprises, as well as selected non-agency residential and commercial mortgage-backed securities.

Dynex Capital uses financing and other investment strategies to generate income from its portfolio of mortgage assets. Its investments are tied primarily to the U.S.

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