Federal Agricultural Mortgage Corporation (NYSE:AGM) Short Interest Down 15.0% in April

Key Points

• Short interest down 15% — as of April 15 short interest fell to 366,391 shares (3.5% of shares), a 15.0% decline from March with a days-to-cover ratio of 4.1.
• Federal Agricultural Mortgage missed quarterly estimates, reporting EPS of $3.66 versus $4.50 expected and revenue of $101.39M versus $107.45M, but raised its quarterly dividend to $1.60 (annual $6.40) for a ~3.7% yield.
• Analysts carry a consensus rating of "Moderate Buy" with a $215 target price, and institutional investors now own about 68% of the company following several large stake increases.

Federal Agricultural Mortgage Corporation (NYSE:AGM - Get Free Report) saw a significant decrease in short interest in April. As of April 15th, there was short interest totaling 366,391 shares, a decrease of 15.0% from the March 31st total of 430,997 shares. Currently, 3.5% of the company's shares are short sold. Based on an average trading volume of 88,757 shares, the days-to-cover ratio is currently 4.1 days.

Analysts Set New Price Targets

AGM has been the subject of a number of recent analyst reports. Wall Street Zen downgraded Federal Agricultural Mortgage from a "hold" rating to a "sell" rating in a report on Saturday, February 21st. Keefe, Bruyette & Woods decreased their target price on Federal Agricultural Mortgage from $219.00 to $215.00 and set an "outperform" rating for the company in a report on Monday, February 23rd. One investment analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, Federal Agricultural Mortgage presently has an average rating of "Moderate Buy" and a consensus target price of $215.00.

Hedge Funds Weigh In On Federal Agricultural Mortgage

A number of institutional investors have recently added to or reduced their stakes in the company. Capital World Investors purchased a new stake in shares of Federal Agricultural Mortgage in the third quarter worth $46,324,000. Northwestern Mutual Wealth Management Co. grew its stake in shares of Federal Agricultural Mortgage by 261,128.6% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 128,002 shares of the credit services provider's stock worth $22,473,000 after acquiring an additional 127,953 shares during the last quarter. Wellington Management Group LLP grew its stake in shares of Federal Agricultural Mortgage by 44.5% in the fourth quarter. Wellington Management Group LLP now owns 262,931 shares of the credit services provider's stock worth $46,163,000 after acquiring an additional 80,911 shares during the last quarter. Captrust Financial Advisors grew its stake in shares of Federal Agricultural Mortgage by 14.8% in the fourth quarter. Captrust Financial Advisors now owns 358,908 shares of the credit services provider's stock worth $63,013,000 after acquiring an additional 46,262 shares during the last quarter. Finally, Man Group plc grew its stake in shares of Federal Agricultural Mortgage by 1,262.0% in the third quarter. Man Group plc now owns 47,508 shares of the credit services provider's stock worth $7,980,000 after acquiring an additional 44,020 shares during the last quarter. Institutional investors own 68.03% of the company's stock.

Federal Agricultural Mortgage Stock Up 0.7%

AGM traded up $1.13 during trading on Friday, reaching $174.93. The stock had a trading volume of 169,849 shares, compared to its average volume of 116,230. The stock's 50 day moving average is $157.39 and its two-hundred day moving average is $166.17. The company has a current ratio of 0.57, a quick ratio of 0.57 and a debt-to-equity ratio of 2.00. The company has a market capitalization of $1.90 billion, a price-to-earnings ratio of 10.51, a P/E/G ratio of 0.81 and a beta of 0.95. Federal Agricultural Mortgage has a one year low of $136.57 and a one year high of $210.64.

Federal Agricultural Mortgage (NYSE:AGM - Get Free Report) last posted its quarterly earnings data on Thursday, February 19th. The credit services provider reported $3.66 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.50 by ($0.84). The firm had revenue of $101.39 million during the quarter, compared to the consensus estimate of $107.45 million. Federal Agricultural Mortgage had a return on equity of 17.93% and a net margin of 15.73%. As a group, analysts expect that Federal Agricultural Mortgage will post 19.41 earnings per share for the current year.

Federal Agricultural Mortgage Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Monday, March 16th were issued a $1.60 dividend. This represents a $6.40 dividend on an annualized basis and a yield of 3.7%. This is a positive change from Federal Agricultural Mortgage's previous quarterly dividend of $1.50. The ex-dividend date was Monday, March 16th. Federal Agricultural Mortgage's dividend payout ratio is currently 38.46%.

About Federal Agricultural Mortgage

Federal Agricultural Mortgage Corporation NYSE: AGM, commonly known as Farmer Mac, is a government-sponsored enterprise chartered in 1988 under the Agricultural Credit Act of 1987. Headquartered in Washington, DC, Farmer Mac was established to enhance the availability of mortgage credit for the agricultural and rural utility sectors. The corporation operates as a secondary market for agricultural real estate and rural infrastructure loans, providing lenders with liquidity and risk management solutions.

The company's principal business activities include purchasing and securitizing long-term fixed-rate agricultural mortgage loans and rural utilities loans originated by approved lenders.

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