Insider Buying: Dynex Capital (NYSE:DX) CFO Buys $10,700.00 in Stock

Key Points

• Dynex Capital CFO Michael Sartori purchased 1,000 shares at $10.70 each, increasing his direct ownership by 2.81% to 36,579 shares.
• Shares rose to $10.93, while the company reported quarterly EPS of $0.38 and revenue of $101.56 million, both slightly below analyst expectations. Dynex also declared a monthly dividend of $0.17 per share, representing an annualized yield of approximately 18.7%.
• Analyst sentiment remains mixed, with an average rating of “Hold” and a $13.38 target price; recent targets included a reduction by JonesTrading to $12.50 despite maintaining a “Buy” rating.

Dynex Capital, Inc. (NYSE:DX - Get Free Report) CFO Michael Andrew Sartori acquired 1,000 shares of the firm's stock in a transaction that occurred on Tuesday, October 20th. The stock was bought at an average cost of $10.70 per share, with a total value of $10,700.00. Following the completion of the transaction, the chief financial officer directly owned 36,579 shares in the company, valued at $391,395.30. The trade was a 2.81% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Dynex Capital Stock Performance

Shares of Dynex Capital stock traded up $0.37 on Tuesday, reaching $10.93. 8,187,915 shares of the stock were exchanged, compared to its average volume of 6,048,099. The business has a 50 day moving average price of $12.11 and a two-hundred day moving average price of $12.74. The firm has a market capitalization of $2.70 billion, a price-to-earnings ratio of 4.16 and a beta of 0.98. Dynex Capital, Inc. has a twelve month low of $10.31 and a twelve month high of $14.93. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 0.01.

Dynex Capital (NYSE:DX - Get Free Report) last posted its quarterly earnings results on Monday, October 19th. The real estate investment trust reported $0.38 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.39 by ($0.01). Dynex Capital had a return on equity of 8.85% and a net margin of 49.18%. The business had revenue of $101.56 million for the quarter, compared to analysts' expectations of $113.48 million.

Dynex Capital Dividend Announcement

The business also recently declared a monthly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Thursday, October 22nd will be given a dividend of $0.17 per share. This represents a $2.04 annualized dividend and a yield of 18.7%. The ex-dividend date of this dividend is Thursday, October 22nd. Dynex Capital's dividend payout ratio (DPR) is currently 77.57%.

Institutional Investors Weigh In On Dynex Capital

A number of large investors have recently modified their holdings of the business. BlackRock Inc. lifted its stake in shares of Dynex Capital by 14.6% in the second quarter. BlackRock Inc. now owns 18,437,985 shares of the real estate investment trust's stock worth $241,722,000 after buying an additional 2,355,906 shares in the last quarter. Callodine Capital Management LP acquired a new position in Dynex Capital during the first quarter worth about $21,320,000. Segall Bryant & Hamill LLC acquired a new position in Dynex Capital during the first quarter worth about $19,581,000. Royal Bank of Canada grew its stake in Dynex Capital by 2,358.9% during the 1st quarter. Royal Bank of Canada now owns 1,531,103 shares of the real estate investment trust's stock valued at $19,537,000 after acquiring an additional 1,468,836 shares in the last quarter. Finally, Wellington Management Group LLP grew its stake in Dynex Capital by 142.9% during the 2nd quarter. Wellington Management Group LLP now owns 2,221,800 shares of the real estate investment trust's stock valued at $29,128,000 after acquiring an additional 1,307,100 shares in the last quarter. Hedge funds and other institutional investors own 38.34% of the company's stock.

Wall Street Analyst Weigh In

DX has been the subject of several recent research reports. Weiss Ratings lowered shares of Dynex Capital from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday. Keefe, Bruyette & Woods reissued an "outperform" rating on shares of Dynex Capital in a report on Tuesday. BTIG Research set a $12.00 price target on shares of Dynex Capital and gave the company a "buy" rating in a research report on Tuesday, October 6th. Finally, JonesTrading cut their price objective on shares of Dynex Capital from $14.75 to $12.50 and set a "buy" rating for the company in a report on Monday. Three investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Dynex Capital has an average rating of "Hold" and an average target price of $13.38.

Key Dynex Capital News

Here are the key news stories impacting Dynex Capital this week:

• Positive Sentiment: Management said stable funding and limited refinancing activity are allowing Dynex to earn attractive spreads without relying on near-term interest-rate cuts. The company also believes currently wide Agency MBS spreads offer an opportunity to invest at favorable valuations. Dynex Capital Bets on Rich MBS Spreads After Painful Quarter
• Positive Sentiment: Dynex raised $384 million of capital and expanded its Agency MBS portfolio by $3.2 billion, lifting the total investment portfolio approximately 3% to $28.3 billion. Net interest income increased to $101.6 million from $93.8 million in the prior quarter, and the company declared a $0.51-per-share dividend. Dynex Capital Posts Third-Quarter Net Loss
• Neutral Sentiment: JonesTrading reduced its price target to $12.50 from $14.75 but maintained a Buy rating, implying potential upside from recent trading levels while acknowledging lower near-term expectations.
• Negative Sentiment: Dynex reported a third-quarter net loss of $335.5 million, or $1.34 per share, compared with a profit-oriented investor focus on portfolio values. Comprehensive loss was $374.8 million, and total economic return was negative $1.48 per share, or negative 11.5% of beginning book value.
• Negative Sentiment: Book value per common share fell sharply to $10.91 from $12.90 in the prior quarter as wider Agency MBS spreads reduced the fair value of the investment portfolio. Leverage, including to-be-announced securities, increased to 9.0 times shareholders’ equity from 8.1 times, adding risk if spreads remain unfavorable. Dynex Capital Third-Quarter Results
• Negative Sentiment: Adjusted earnings also modestly missed expectations: EPS was $0.38 versus a $0.39 consensus estimate, while revenue of $101.56 million came in below the $113.48 million forecast. Dynex Capital Earnings Report

Dynex Capital Company Profile

Dynex Capital, Inc NYSE: DX is an internally managed real estate investment trust that invests in mortgage-related assets. The company primarily focuses on agency mortgage-backed securities, including securities backed by the U.S. government or government-sponsored enterprises, as well as selected non-agency residential and commercial mortgage-backed securities.

Dynex Capital uses financing and other investment strategies to generate income from its portfolio of mortgage assets. Its investments are tied primarily to the U.S.

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