Algebris UK Ltd. Takes $15.60 Million Position in Dynex Capital, Inc. $DX

Key Points

• Algebris UK Ltd. acquired 1.19 million Dynex Capital shares worth approximately $15.6 million, representing 0.48% of the mortgage REIT and about 1% of Algebris’ portfolio.
• Dynex Capital reported quarterly EPS of $0.36, in line with analyst estimates, while revenue of $302.75 million exceeded expectations. The company also declared a monthly dividend of $0.17 per share, implying a 15.3% annualized yield.
• Institutional investors own 38.34% of Dynex Capital. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $14.56 versus the reported share price of $13.32.

Algebris UK Ltd. bought a new stake in Dynex Capital, Inc. (NYSE:DX - Free Report) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 1,193,447 shares of the real estate investment trust's stock, valued at approximately $15,597,000. Dynex Capital makes up approximately 1.0% of Algebris UK Ltd.'s investment portfolio, making the stock its 27th biggest position. Algebris UK Ltd. owned 0.48% of Dynex Capital at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently bought and sold shares of DX. Summit Financial LLC boosted its position in shares of Dynex Capital by 0.4% during the 4th quarter. Summit Financial LLC now owns 211,048 shares of the real estate investment trust's stock valued at $2,957,000 after acquiring an additional 903 shares in the last quarter. Huntington National Bank grew its stake in shares of Dynex Capital by 22.3% in the 4th quarter. Huntington National Bank now owns 5,856 shares of the real estate investment trust's stock valued at $82,000 after purchasing an additional 1,066 shares during the period. Brevan Howard Capital Management LP raised its holdings in shares of Dynex Capital by 2.1% in the 3rd quarter. Brevan Howard Capital Management LP now owns 52,725 shares of the real estate investment trust's stock worth $648,000 after buying an additional 1,074 shares in the last quarter. Integrity Alliance LLC. lifted its position in shares of Dynex Capital by 6.9% during the 2nd quarter. Integrity Alliance LLC. now owns 16,683 shares of the real estate investment trust's stock worth $219,000 after buying an additional 1,081 shares during the period. Finally, Lido Advisors LLC boosted its stake in Dynex Capital by 2.3% in the 3rd quarter. Lido Advisors LLC now owns 53,321 shares of the real estate investment trust's stock valued at $664,000 after buying an additional 1,179 shares in the last quarter. 38.34% of the stock is owned by institutional investors.

Dynex Capital Price Performance

Shares of DX stock opened at $13.32 on Thursday. Dynex Capital, Inc. has a 52 week low of $11.82 and a 52 week high of $14.93. The stock has a market capitalization of $3.30 billion, a PE ratio of 5.07 and a beta of 0.96. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.16 and a current ratio of 1.16. The stock's fifty day moving average is $13.01 and its 200-day moving average is $13.21.

Dynex Capital (NYSE:DX - Get Free Report) last released its quarterly earnings results on Monday, July 20th. The real estate investment trust reported $0.36 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.36. The business had revenue of $302.75 million during the quarter, compared to analysts' expectations of $103.62 million. Dynex Capital had a return on equity of 8.85% and a net margin of 49.18%.

Dynex Capital Announces Dividend

The business also recently announced a monthly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Friday, August 21st will be given a dividend of $0.17 per share. This represents a c) dividend on an annualized basis and a dividend yield of 15.3%. The ex-dividend date is Friday, August 21st. Dynex Capital's dividend payout ratio is presently 77.57%.

Analysts Set New Price Targets

A number of analysts have weighed in on the company. Weiss Ratings reiterated a "hold (c)" rating on shares of Dynex Capital in a research report on Wednesday, June 24th. Wall Street Zen cut Dynex Capital from a "hold" rating to a "sell" rating in a report on Saturday, May 9th. JonesTrading restated a "buy" rating and issued a $14.75 target price on shares of Dynex Capital in a research note on Tuesday, July 21st. UBS Group reaffirmed a "neutral" rating and issued a $14.50 target price (up from $14.00) on shares of Dynex Capital in a report on Friday, April 24th. Finally, BTIG Research set a $14.50 target price on shares of Dynex Capital in a research report on Wednesday, June 17th. Two investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, Dynex Capital currently has a consensus rating of "Moderate Buy" and a consensus target price of $14.56.

Dynex Capital Profile

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.

Want to see what other hedge funds are holding DX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Dynex Capital, Inc. (NYSE:DX - Free Report).

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