Dynex Capital, Inc. $DX Shares Acquired by Vanguard Group Inc.

Key Points

• Vanguard Group boosted its stake in Dynex Capital by 21.3% in Q3, owning 7,513,849 shares (a 5.12% stake) worth about $92.35 million.
• Dynex missed quarterly EPS estimates, reporting $0.22 vs. an expected $0.48 despite higher-than-expected revenue, and it pays a monthly dividend of $0.17 (annualized yield ~15.0%) with a 100% payout ratio.

Vanguard Group Inc. boosted its holdings in Dynex Capital, Inc. (NYSE:DX - Free Report) by 21.3% during the third quarter, according to its most recent Form 13F filing with the SEC. The fund owned 7,513,849 shares of the real estate investment trust's stock after acquiring an additional 1,318,236 shares during the period. Vanguard Group Inc. owned 5.12% of Dynex Capital worth $92,345,000 at the end of the most recent reporting period.

Other hedge funds also recently added to or reduced their stakes in the company. Rhumbline Advisers raised its position in Dynex Capital by 13.3% in the third quarter. Rhumbline Advisers now owns 177,594 shares of the real estate investment trust's stock valued at $2,183,000 after purchasing an additional 20,805 shares during the period. Advisors Asset Management Inc. increased its position in shares of Dynex Capital by 139.8% during the 3rd quarter. Advisors Asset Management Inc. now owns 252,197 shares of the real estate investment trust's stock worth $3,100,000 after purchasing an additional 147,042 shares during the last quarter. Navellier & Associates Inc. raised its holdings in Dynex Capital by 8.2% in the 3rd quarter. Navellier & Associates Inc. now owns 147,734 shares of the real estate investment trust's stock valued at $1,816,000 after buying an additional 11,210 shares during the period. Penserra Capital Management LLC lifted its position in Dynex Capital by 3.5% in the third quarter. Penserra Capital Management LLC now owns 89,592 shares of the real estate investment trust's stock valued at $1,101,000 after buying an additional 3,036 shares during the last quarter. Finally, Arizona State Retirement System lifted its position in Dynex Capital by 13.0% in the third quarter. Arizona State Retirement System now owns 31,711 shares of the real estate investment trust's stock valued at $390,000 after buying an additional 3,637 shares during the last quarter. 38.34% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on DX. JonesTrading lifted their price target on shares of Dynex Capital from $14.00 to $15.25 and gave the company a "buy" rating in a research report on Tuesday, January 27th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Dynex Capital in a research report on Monday, December 29th. Finally, Keefe, Bruyette & Woods reissued an "outperform" rating on shares of Dynex Capital in a research report on Thursday, January 29th. Two investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Dynex Capital has a consensus rating of "Moderate Buy" and an average target price of $14.33.

Dynex Capital Stock Performance

Shares of DX opened at $13.62 on Friday. The company's 50-day simple moving average is $14.10 and its 200-day simple moving average is $13.47. Dynex Capital, Inc. has a 1 year low of $10.79 and a 1 year high of $14.93. The stock has a market capitalization of $2.75 billion, a PE ratio of 6.68 and a beta of 0.97.

Dynex Capital (NYSE:DX - Get Free Report) last announced its quarterly earnings data on Monday, January 26th. The real estate investment trust reported $0.22 earnings per share for the quarter, missing analysts' consensus estimates of $0.48 by ($0.26). The business had revenue of $202.00 million during the quarter, compared to analyst estimates of $59.41 million. Dynex Capital had a net margin of 59.80% and a return on equity of 6.83%. On average, sell-side analysts predict that Dynex Capital, Inc. will post 1.94 earnings per share for the current year.

Dynex Capital Dividend Announcement

The business also recently disclosed a monthly dividend, which was paid on Monday, March 2nd. Stockholders of record on Monday, February 23rd were given a dividend of $0.17 per share. The ex-dividend date of this dividend was Monday, February 23rd. This represents a c) dividend on an annualized basis and a dividend yield of 15.0%. Dynex Capital's dividend payout ratio is currently 100.00%.

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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