Retirement Systems of Alabama Reduces Holdings in Annaly Capital Management Inc $NLY

Key Points

• Retirement Systems of Alabama cut its Annaly Capital Management stake by 11.1% in the second quarter, selling 122,806 shares and retaining 979,848 shares valued at approximately $21.9 million.
• Analysts remain generally positive, with Annaly carrying a “Moderate Buy” consensus rating and an average price target of $24.33, despite some target-price reductions.
• Annaly reported quarterly EPS of $0.79, exceeding estimates, and increased its quarterly dividend to $0.75, representing a 12.8% annualized yield.

Retirement Systems of Alabama reduced its stake in shares of Annaly Capital Management Inc (NYSE:NLY - Free Report) by 11.1% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 979,848 shares of the real estate investment trust's stock after selling 122,806 shares during the period. Retirement Systems of Alabama owned 0.13% of Annaly Capital Management worth $21,909,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Vanguard Group Inc. grew its holdings in Annaly Capital Management by 5.0% during the 4th quarter. Vanguard Group Inc. now owns 63,613,639 shares of the real estate investment trust's stock valued at $1,422,401,000 after buying an additional 3,024,564 shares during the last quarter. State Street Corp raised its holdings in shares of Annaly Capital Management by 8.4% in the fourth quarter. State Street Corp now owns 26,425,278 shares of the real estate investment trust's stock worth $608,994,000 after acquiring an additional 2,053,451 shares during the last quarter. Geode Capital Management LLC boosted its stake in shares of Annaly Capital Management by 8.9% during the fourth quarter. Geode Capital Management LLC now owns 18,401,487 shares of the real estate investment trust's stock valued at $411,031,000 after acquiring an additional 1,503,559 shares during the last quarter. Norges Bank acquired a new stake in shares of Annaly Capital Management during the fourth quarter valued at $162,477,000. Finally, Morgan Stanley boosted its stake in shares of Annaly Capital Management by 33.5% during the fourth quarter. Morgan Stanley now owns 6,977,329 shares of the real estate investment trust's stock valued at $156,013,000 after acquiring an additional 1,751,509 shares during the last quarter. Hedge funds and other institutional investors own 51.56% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on NLY shares. Wells Fargo & Company cut their target price on shares of Annaly Capital Management from $25.00 to $24.00 and set an "overweight" rating for the company in a research note on Thursday, July 23rd. BTIG Research set a $24.00 price target on shares of Annaly Capital Management in a research note on Wednesday, June 17th. JPMorgan Chase & Co. lowered their price target on shares of Annaly Capital Management from $26.00 to $24.00 and set an "overweight" rating for the company in a report on Friday, July 24th. Piper Sandler boosted their price objective on shares of Annaly Capital Management from $24.50 to $25.00 and gave the company an "overweight" rating in a research report on Thursday, July 2nd. Finally, Wall Street Zen raised shares of Annaly Capital Management from a "sell" rating to a "hold" rating in a research note on Saturday, May 2nd. Two investment analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $24.33.

Annaly Capital Management Stock Up 1.1%

Shares of NYSE:NLY opened at $23.38 on Friday. The company has a market cap of $17.62 billion, a P/E ratio of 5.86, a P/E/G ratio of 6.04 and a beta of 1.16. Annaly Capital Management Inc has a 52 week low of $20.00 and a 52 week high of $24.52. The business has a fifty day simple moving average of $22.57 and a 200-day simple moving average of $22.39.

Annaly Capital Management (NYSE:NLY - Get Free Report) last released its earnings results on Tuesday, July 21st. The real estate investment trust reported $0.79 EPS for the quarter, beating the consensus estimate of $0.75 by $0.04. Annaly Capital Management had a return on equity of 16.00% and a net margin of 43.66%.The firm had revenue of $1.82 billion during the quarter, compared to analyst estimates of $639.80 million. Sell-side analysts expect that Annaly Capital Management Inc will post 3.09 earnings per share for the current fiscal year.

Annaly Capital Management Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, July 31st. Shareholders of record on Tuesday, June 30th were issued a $0.75 dividend. This is a positive change from Annaly Capital Management's previous quarterly dividend of $0.70. The ex-dividend date was Tuesday, June 30th. This represents a $3.00 annualized dividend and a yield of 12.8%. Annaly Capital Management's dividend payout ratio (DPR) is presently 75.19%.

Annaly Capital Management Profile

Annaly Capital Management, Inc is a publicly traded real estate investment trust (REIT) that specializes in generating income through investment in mortgage-related assets. The company's core business activities include the acquisition, financing, and management of a diversified portfolio of agency and non-agency residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), and other real estate debt instruments. Annaly seeks to profit from the spread between the interest earned on its mortgage investments and its cost of funds, as well as from capital gains realized through active portfolio management.

Founded in 1997 and headquartered in New York City, Annaly has grown to become one of the largest mortgage REITs in the United States.

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