Investors Purchase Large Volume of Put Options on AGNC Investment (NASDAQ:AGNC)

Key Points

• Investors have purchased 50,177 put options on AGNC Investment Corp., marking a 54% increase from the average daily volume.
• AGNC reported $0.35 earnings per share for the last quarter, missing the expected $0.38, while generating revenue of $903 million against an estimate of $466.39 million.
• The firm announced a dividend of $0.12 per share to be paid on November 12, reflecting a high dividend yield of 1,417.0% but a significant payout ratio of 214.93%.

AGNC Investment Corp. (NASDAQ:AGNC - Get Free Report) was the recipient of some unusual options trading on Friday. Investors purchased 50,177 put options on the stock. This is an increase of 54% compared to the average daily volume of 32,544 put options.

AGNC Investment Trading Up 1.6%

AGNC stock traded up $0.16 during midday trading on Friday, hitting $10.25. The company had a trading volume of 9,017,492 shares, compared to its average volume of 24,184,174. The company has a current ratio of 0.33, a quick ratio of 0.33 and a debt-to-equity ratio of 0.01. AGNC Investment has a 52 week low of $7.85 and a 52 week high of $10.63. The stock's 50 day moving average price is $9.96 and its 200 day moving average price is $9.40. The stock has a market cap of $10.68 billion, a price-to-earnings ratio of 15.29 and a beta of 1.32.

AGNC Investment (NASDAQ:AGNC - Get Free Report) last posted its earnings results on Monday, October 20th. The real estate investment trust reported $0.35 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.38 by ($0.03). AGNC Investment had a net margin of 24.40% and a return on equity of 19.44%. The business had revenue of $903.00 million for the quarter, compared to analysts' expectations of $466.39 million. During the same period last year, the firm posted $0.43 earnings per share. As a group, equities research analysts expect that AGNC Investment will post 1.61 earnings per share for the current fiscal year.

AGNC Investment Announces Dividend

The firm also recently announced a oct 25 dividend, which will be paid on Wednesday, November 12th. Stockholders of record on Friday, October 31st will be paid a dividend of $0.12 per share. The ex-dividend date of this dividend is Friday, October 31st. This represents a dividend yield of 1,417.0%. AGNC Investment's payout ratio is 214.93%.

Analysts Set New Price Targets

AGNC has been the subject of a number of recent analyst reports. Royal Bank Of Canada lifted their target price on AGNC Investment from $10.00 to $11.00 and gave the company an "outperform" rating in a report on Wednesday. JPMorgan Chase & Co. lifted their price target on AGNC Investment from $9.50 to $10.00 and gave the company an "overweight" rating in a research report on Monday. Jones Trading reiterated a "buy" rating and set a $10.00 price target on shares of AGNC Investment in a research report on Tuesday. Piper Sandler lifted their price target on AGNC Investment from $10.00 to $10.50 and gave the company an "overweight" rating in a research report on Wednesday, October 8th. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of AGNC Investment in a research report on Wednesday, October 8th. Six analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $10.18.

Insiders Place Their Bets

In related news, Director John D. Fisk sold 20,278 shares of the company's stock in a transaction that occurred on Monday, July 28th. The shares were sold at an average price of $9.65, for a total transaction of $195,682.70. Following the sale, the director directly owned 112,685 shares in the company, valued at approximately $1,087,410.25. This represents a 15.25% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Company insiders own 0.42% of the company's stock.

Hedge Funds Weigh In On AGNC Investment

Hedge funds have recently made changes to their positions in the business. Wealth Enhancement Advisory Services LLC grew its stake in AGNC Investment by 6.9% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 117,763 shares of the real estate investment trust's stock worth $1,128,000 after purchasing an additional 7,650 shares during the period. Janney Montgomery Scott LLC grew its stake in AGNC Investment by 22.3% in the first quarter. Janney Montgomery Scott LLC now owns 249,127 shares of the real estate investment trust's stock worth $2,387,000 after purchasing an additional 45,457 shares during the period. HBK Sorce Advisory LLC grew its stake in AGNC Investment by 35.1% in the first quarter. HBK Sorce Advisory LLC now owns 150,092 shares of the real estate investment trust's stock worth $1,438,000 after purchasing an additional 38,995 shares during the period. Balefire LLC grew its stake in AGNC Investment by 6.4% in the first quarter. Balefire LLC now owns 327,947 shares of the real estate investment trust's stock worth $3,142,000 after purchasing an additional 19,740 shares during the period. Finally, Transcend Capital Advisors LLC grew its stake in AGNC Investment by 1.6% in the first quarter. Transcend Capital Advisors LLC now owns 585,745 shares of the real estate investment trust's stock worth $5,611,000 after purchasing an additional 9,039 shares during the period. 38.28% of the stock is owned by hedge funds and other institutional investors.

About AGNC Investment

AGNC Investment Corp., formerly American Capital Agency Corp., is a real estate investment trust. The Company invests in agency residential mortgage-backed securities on a leveraged basis. Its investments consist of residential mortgage pass-through securities and collateralized mortgage obligations (CMOs) for which the principal and interest payments are guaranteed by a government-sponsored enterprise, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), or by the United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) (collectively, GSEs).

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