Dynex Capital (NYSE:DX) Posts Earnings Results, Meets Expectations

Key Points

• Dynex Capital reported quarterly earnings of $0.36 per share, exactly matching Wall Street’s consensus estimate. The REIT also posted a 7.86% return on equity and a 34.75% net margin.
• The company declared a monthly dividend of $0.17 per share payable on August 3, with an ex-dividend date of July 23. That works out to an annualized yield of about 15.4%, though the payout ratio is elevated at 120.71%.
• Analysts remain mixed on DX: the stock currently carries a Moderate Buy consensus rating with an average target price of $14.69. Recent updates included a downgrade from Wall Street Zen to Sell and reaffirmed Neutral/Hold ratings from other firms.

Dynex Capital (NYSE:DX - Get Free Report) released its earnings results on Monday. The real estate investment trust reported $0.36 EPS for the quarter, meeting the consensus estimate of $0.36, Zacks reports. Dynex Capital had a return on equity of 7.86% and a net margin of 34.75%.

Dynex Capital Price Performance

Dynex Capital stock opened at $13.26 on Monday. The firm has a market cap of $2.85 billion, a PE ratio of 7.88 and a beta of 0.95. The stock's fifty day moving average price is $13.04 and its two-hundred day moving average price is $13.44. Dynex Capital has a one year low of $11.82 and a one year high of $14.93.

Dynex Capital Dividend Announcement

The business also recently declared a monthly dividend, which will be paid on Monday, August 3rd. Investors of record on Thursday, July 23rd will be given a dividend of $0.17 per share. The ex-dividend date of this dividend is Thursday, July 23rd. This represents a c) dividend on an annualized basis and a yield of 15.4%. Dynex Capital's dividend payout ratio is currently 120.71%.

Hedge Funds Weigh In On Dynex Capital

Hedge funds have recently bought and sold shares of the company. AQR Capital Management LLC increased its stake in Dynex Capital by 54.6% in the first quarter. AQR Capital Management LLC now owns 103,183 shares of the real estate investment trust's stock valued at $1,343,000 after acquiring an additional 36,455 shares during the last quarter. Goldman Sachs Group Inc. raised its holdings in shares of Dynex Capital by 86.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 804,419 shares of the real estate investment trust's stock worth $10,474,000 after buying an additional 373,610 shares in the last quarter. Cetera Investment Advisers raised its stake in Dynex Capital by 51.5% during the second quarter. Cetera Investment Advisers now owns 25,149 shares of the real estate investment trust's stock worth $307,000 after acquiring an additional 8,549 shares in the last quarter. JPMorgan Chase & Co. lifted its holdings in shares of Dynex Capital by 241.6% in the second quarter. JPMorgan Chase & Co. now owns 183,247 shares of the real estate investment trust's stock worth $2,239,000 after acquiring an additional 129,601 shares during the last quarter. Finally, New York State Common Retirement Fund lifted its holdings in shares of Dynex Capital by 36.0% in the second quarter. New York State Common Retirement Fund now owns 34,774 shares of the real estate investment trust's stock worth $425,000 after acquiring an additional 9,200 shares during the last quarter. 38.34% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

DX has been the subject of a number of recent analyst reports. Wall Street Zen cut shares of Dynex Capital from a "hold" rating to a "sell" rating in a research note on Saturday, May 9th. UBS Group reiterated a "neutral" rating and set a $14.50 price target (up from $14.00) on shares of Dynex Capital in a report on Friday, April 24th. Weiss Ratings restated a "hold (c)" rating on shares of Dynex Capital in a research note on Wednesday, June 24th. Finally, BTIG Research set a $14.50 target price on Dynex Capital in a research note on Wednesday, June 17th. Two investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $14.69.

About Dynex Capital

Dynex Capital, Inc is a mortgage real estate investment trust (REIT) that specializes in acquiring and managing mortgage-related assets. The company's primary business involves investing in residential mortgage-backed securities (RMBS), including agency-backed pools issued or guaranteed by government-sponsored entities such as Fannie Mae, Freddie Mac and Ginnie Mae, as well as selected non-agency RMBS. Dynex Capital seeks to generate net interest income by earning interest on its portfolio while employing leverage through secured repurchase agreements and other debt facilities.

In pursuing its investment objectives, Dynex Capital manages portfolio duration and interest rate exposures, with a focus on preserving capital and optimizing yield over the economic cycle.

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