Wellington Management Group LLP Grows Stock Holdings in Dynex Capital, Inc. $DX

Key Points

• Wellington Management increased its Dynex Capital stake by 142.9% in the second quarter, adding 1.31 million shares to own approximately 2.22 million shares valued at $29.1 million.
• Other institutional investors also expanded their positions, including BlackRock, which owns 18.4 million shares, while hedge funds and institutions collectively hold 38.34% of Dynex Capital.
• Dynex Capital reported quarterly EPS of $0.36, matching analyst estimates, and pays a monthly $0.17 dividend representing an annualized yield of about 15.8%. Analysts’ average price target is $14.56, implying upside from the reported $12.93 share price.

Wellington Management Group LLP lifted its holdings in Dynex Capital, Inc. (NYSE:DX - Free Report) by 142.9% in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 2,221,800 shares of the real estate investment trust's stock after acquiring an additional 1,307,100 shares during the period. Wellington Management Group LLP owned approximately 0.90% of Dynex Capital worth $29,128,000 as of its most recent SEC filing.

A number of other hedge funds have also made changes to their positions in the business. BlackRock Inc. boosted its position in Dynex Capital by 14.6% during the 2nd quarter. BlackRock Inc. now owns 18,437,985 shares of the real estate investment trust's stock worth $241,722,000 after purchasing an additional 2,355,906 shares during the period. Callodine Capital Management LP purchased a new position in Dynex Capital in the first quarter valued at about $21,320,000. Segall Bryant & Hamill LLC acquired a new position in shares of Dynex Capital during the first quarter worth about $19,581,000. Royal Bank of Canada boosted its position in shares of Dynex Capital by 2,358.9% in the first quarter. Royal Bank of Canada now owns 1,531,103 shares of the real estate investment trust's stock worth $19,537,000 after buying an additional 1,468,836 shares during the period. Finally, Algebris UK Ltd. purchased a new stake in shares of Dynex Capital in the second quarter worth about $15,597,000. Hedge funds and other institutional investors own 38.34% of the company's stock.

Dynex Capital Stock Up 0.8%

Shares of NYSE DX opened at $12.93 on Friday. Dynex Capital, Inc. has a 1 year low of $11.82 and a 1 year high of $14.93. The firm has a market cap of $3.20 billion, a price-to-earnings ratio of 4.92 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 50-day simple moving average is $12.99 and its 200-day simple moving average is $13.13.

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

Dynex Capital Announces Dividend

The firm also recently announced a monthly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Friday, August 21st were paid a dividend of $0.17 per share. This represents a c) annualized dividend and a dividend yield of 15.8%. The ex-dividend date was Friday, August 21st. Dynex Capital's dividend payout ratio is 77.57%.

Wall Street Analysts Forecast Growth

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

Dynex Capital Company 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.

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