VELA Investment Management LLC Sells 12,247 Shares of Federal Agricultural Mortgage Corporation $AGM

Key Points

• VELA Investment Management trimmed its position in Federal Agricultural Mortgage (NYSE:AGM) by 78.8% in Q4, selling 12,247 shares and retaining 3,292 shares worth about $578,000 per its 13F filing.
• Earnings missed — Farmer Mac reported Q EPS of $3.66 vs. a $4.50 consensus and revenue of $101.39M vs. $107.45M, with a net margin of 15.73% and ROE of 17.93%.
• Dividend increased to $1.60 quarterly (annualized $6.40) for a ~3.7% yield and 38.46% payout ratio; analysts' average target is $215 with a "Moderate Buy" consensus.

VELA Investment Management LLC trimmed its position in Federal Agricultural Mortgage Corporation (NYSE:AGM - Free Report) by 78.8% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 3,292 shares of the credit services provider's stock after selling 12,247 shares during the quarter. VELA Investment Management LLC's holdings in Federal Agricultural Mortgage were worth $578,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also modified their holdings of the company. Thrivent Financial for Lutherans grew its holdings in Federal Agricultural Mortgage by 11.4% in the third quarter. Thrivent Financial for Lutherans now owns 420,679 shares of the credit services provider's stock worth $70,665,000 after purchasing an additional 43,160 shares during the period. Y Intercept Hong Kong Ltd acquired a new stake in Federal Agricultural Mortgage in the third quarter worth $1,063,000. Captrust Financial Advisors grew its holdings in Federal Agricultural Mortgage by 5.9% in the third quarter. Captrust Financial Advisors now owns 312,646 shares of the credit services provider's stock worth $52,518,000 after purchasing an additional 17,293 shares during the period. American Century Companies Inc. grew its holdings in Federal Agricultural Mortgage by 9.6% in the third quarter. American Century Companies Inc. now owns 288,701 shares of the credit services provider's stock worth $48,496,000 after purchasing an additional 25,305 shares during the period. Finally, Kingsview Wealth Management LLC acquired a new stake in Federal Agricultural Mortgage in the third quarter worth $3,446,000. 68.03% of the stock is currently owned by institutional investors and hedge funds.

Federal Agricultural Mortgage Stock Up 0.7%

AGM opened at $174.93 on Friday. The company has a debt-to-equity ratio of 2.00, a current ratio of 0.57 and a quick ratio of 0.57. The company's 50-day moving average is $157.39 and its 200 day moving average is $166.20. Federal Agricultural Mortgage Corporation has a fifty-two week low of $136.57 and a fifty-two week high of $210.64. The firm has a market capitalization of $1.90 billion, a P/E ratio of 10.51, a PEG ratio of 0.82 and a beta of 1.02.

Federal Agricultural Mortgage (NYSE:AGM - Get Free Report) last released its quarterly earnings results on Thursday, February 19th. The credit services provider reported $3.66 earnings per share for the quarter, missing analysts' consensus estimates of $4.50 by ($0.84). Federal Agricultural Mortgage had a net margin of 15.73% and a return on equity of 17.93%. The firm had revenue of $101.39 million for the quarter, compared to the consensus estimate of $107.45 million. Research analysts expect that Federal Agricultural Mortgage Corporation will post 19.41 earnings per share for the current fiscal year.

Federal Agricultural Mortgage Increases Dividend

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

Analysts Set New Price Targets

A number of brokerages have recently issued reports on AGM. Keefe, Bruyette & Woods reduced their price objective on shares of Federal Agricultural Mortgage from $219.00 to $215.00 and set an "outperform" rating for the company in a report on Monday, February 23rd. Wall Street Zen cut shares of Federal Agricultural Mortgage from a "hold" rating to a "sell" rating in a report on Saturday, February 21st. One analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $215.00.

Federal Agricultural Mortgage 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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