Federal Agricultural Mortgage (NYSE:AGM) Posts Earnings Results, Beats Expectations By $0.30 EPS

Key Points

• Q1 results beat expectations: Farmer Mac reported EPS of $4.74, beating consensus by $0.30, while revenue was $109.13 million versus an estimate of $110.76 million; the quarter delivered a 17.93% return on equity and a 15.73% net margin.
• Dividend increased: The company raised its quarterly dividend to $1.60 (annualized $6.40), a 3.7% yield and a 38.46% payout ratio, up from the prior $1.50 quarterly payout.
• Shares rose to $171.55 on the news; the stock trades at a P/E of 10.31 with a market cap of $1.86 billion and carries an average analyst consensus rating of "Moderate Buy" and a $215 target.

Federal Agricultural Mortgage (NYSE:AGM - Get Free Report) issued its quarterly earnings results on Tuesday. The credit services provider reported $4.74 earnings per share for the quarter, beating analysts' consensus estimates of $4.44 by $0.30, FiscalAI reports. Federal Agricultural Mortgage had a return on equity of 17.93% and a net margin of 15.73%.The business had revenue of $109.13 million during the quarter, compared to the consensus estimate of $110.76 million.

Federal Agricultural Mortgage Stock Performance

AGM traded up $1.02 during trading on Tuesday, reaching $171.55. 118,303 shares of the company were exchanged, compared to its average volume of 116,211. The stock has a market cap of $1.86 billion, a P/E ratio of 10.31, a PEG ratio of 0.82 and a beta of 1.02. The firm has a 50 day moving average of $157.39 and a 200 day moving average of $166.20. The company has a current ratio of 0.57, a quick ratio of 0.57 and a debt-to-equity ratio of 2.00. Federal Agricultural Mortgage has a 52 week low of $136.57 and a 52 week high of $210.64.

Federal Agricultural Mortgage Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Monday, March 16th were paid a dividend of $1.60 per share. This represents a $6.40 dividend on an annualized basis and a yield of 3.7%. The ex-dividend date was Monday, March 16th. This is an increase from Federal Agricultural Mortgage's previous quarterly dividend of $1.50. Federal Agricultural Mortgage's dividend payout ratio (DPR) is currently 38.46%.

Analyst Ratings Changes

AGM has been the subject of a number of research 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 lowered their price target 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 research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $215.00.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Acadian Asset Management LLC bought a new position in Federal Agricultural Mortgage during the 1st quarter worth $34,000. Kestra Advisory Services LLC bought a new position in Federal Agricultural Mortgage during the 4th quarter worth $40,000. Advisory Services Network LLC bought a new position in Federal Agricultural Mortgage during the 3rd quarter worth $48,000. Danske Bank A S bought a new position in Federal Agricultural Mortgage during the 3rd quarter worth $50,000. Finally, Northwestern Mutual Wealth Management Co. grew its stake in Federal Agricultural Mortgage by 800.0% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 441 shares of the credit services provider's stock worth $77,000 after buying an additional 392 shares during the last quarter. 68.03% of the stock is currently owned by institutional investors.

Federal Agricultural Mortgage Company Profile

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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