Callodine Capital Management LP Buys Shares of 1,670,854 Dynex Capital, Inc. $DX

Key Points

• Callodine Capital Management opened a new position in Dynex Capital during the first quarter, buying 1,670,854 shares worth about $21.3 million. The stake represented roughly 1.5% of Callodine’s portfolio and 0.78% of Dynex Capital.
• Dynex Capital reported second-quarter earnings of $0.36 per share, matching Wall Street estimates, while revenue came in far above expectations at $302.75 million versus the forecast of $103.62 million.
• The company declared a monthly dividend of $0.17 per share, implying an annualized yield of about 16.2%. Analyst sentiment is mixed to positive, with an average rating of “Moderate Buy” and an average price target of $14.56.

Callodine Capital Management LP bought a new position in shares of Dynex Capital, Inc. (NYSE:DX - Free Report) during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 1,670,854 shares of the real estate investment trust's stock, valued at approximately $21,320,000. Dynex Capital accounts for approximately 1.5% of Callodine Capital Management LP's investment portfolio, making the stock its 24th largest holding. Callodine Capital Management LP owned 0.78% of Dynex Capital as of its most recent SEC filing.

A number of other large investors also recently modified their holdings of the business. Balyasny Asset Management L.P. grew its position in shares of Dynex Capital by 87.8% during the 4th quarter. Balyasny Asset Management L.P. now owns 2,136,636 shares of the real estate investment trust's stock valued at $29,934,000 after buying an additional 998,736 shares during the last quarter. Millennium Management LLC lifted its holdings in Dynex Capital by 79.8% in the third quarter. Millennium Management LLC now owns 2,235,018 shares of the real estate investment trust's stock worth $27,468,000 after acquiring an additional 992,269 shares during the last quarter. Vanguard Group Inc. lifted its holdings in Dynex Capital by 11.7% in the fourth quarter. Vanguard Group Inc. now owns 8,390,780 shares of the real estate investment trust's stock worth $117,555,000 after acquiring an additional 876,931 shares during the last quarter. Goldman Sachs Group Inc. lifted its holdings in Dynex Capital by 139.4% in the fourth quarter. Goldman Sachs Group Inc. now owns 895,477 shares of the real estate investment trust's stock worth $12,546,000 after acquiring an additional 521,430 shares during the last quarter. Finally, Renaissance Technologies LLC acquired a new position in Dynex Capital in the fourth quarter valued at approximately $5,935,000. 38.34% of the stock is currently owned by institutional investors.

Dynex Capital Trading Down 0.0%

NYSE DX opened at $12.60 on Friday. The company has a 50-day moving average price of $13.00 and a two-hundred day moving average price of $13.40. Dynex Capital, Inc. has a 52 week low of $11.82 and a 52 week high of $14.93. The stock has a market cap of $2.71 billion, a price-to-earnings ratio of 4.79 and a beta of 0.95.

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 for the quarter, meeting analysts' consensus estimates of $0.36. Dynex Capital had a return on equity of 9.63% and a net margin of 49.18%.The company had revenue of $302.75 million for the quarter, compared to analysts' expectations of $103.62 million.

Dynex Capital Dividend Announcement

The firm also recently declared a monthly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Thursday, July 23rd will be given a dividend of $0.17 per share. This represents a c) dividend on an annualized basis and a yield of 16.2%. The ex-dividend date is Thursday, July 23rd. Dynex Capital's payout ratio is 77.57%.

Wall Street Analyst Weigh In

DX has been the subject of several recent research reports. Wall Street Zen lowered Dynex Capital from a "hold" rating to a "sell" rating in a report on Saturday, May 9th. JonesTrading reissued a "buy" rating and issued a $14.75 price target on shares of Dynex Capital in a report on Tuesday, July 21st. BTIG Research set a $14.50 price objective on Dynex Capital in a research report on Wednesday, June 17th. Weiss Ratings restated a "hold (c)" rating on shares of Dynex Capital in a research note on Wednesday, June 24th. Finally, Keefe, Bruyette & Woods reaffirmed an "outperform" rating on shares of Dynex Capital in a research report on Tuesday. Two equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $14.56.

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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