Annaly Capital Management Sees Unusually Large Options Volume (NYSE:NLY)

Key Points

• Unusual options activity: Traders purchased 10,591 put options on Annaly Capital Management, approximately 42% above its typical volume.
• Stock and earnings: Shares fell to $22.14, while the company’s latest quarterly earnings of $0.79 per share exceeded analyst estimates of $0.75.
• Dividend and outlook: Annaly declared a quarterly dividend of $0.75 per share, representing a 13.6% annualized yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $24.33.

Annaly Capital Management Inc (NYSE:NLY - Get Free Report) saw some unusual options trading activity on Thursday. Traders acquired 10,591 put options on the stock. This represents an increase of approximately 42% compared to the typical volume of 7,442 put options.

Annaly Capital Management Stock Performance

Shares of NYSE:NLY traded down $0.47 during mid-day trading on Thursday, hitting $22.14. The stock had a trading volume of 6,291,337 shares, compared to its average volume of 7,506,441. The company's 50 day moving average is $22.91 and its 200-day moving average is $22.38. Annaly Capital Management has a 12-month low of $20.00 and a 12-month high of $24.52. The company has a market cap of $16.68 billion, a PE ratio of 5.55, a P/E/G ratio of 1.79 and a beta of 1.16.

Annaly Capital Management (NYSE:NLY - Get Free Report) last posted its quarterly earnings data on Tuesday, July 21st. The real estate investment trust reported $0.79 earnings per share for the quarter, topping the consensus estimate of $0.75 by $0.04. The firm had revenue of $1.82 billion for the quarter, compared to analysts' expectations of $639.80 million. Annaly Capital Management had a net margin of 43.66% and a return on equity of 16.00%. On average, equities research analysts predict that Annaly Capital Management will post 3.09 EPS for the current fiscal year.

Annaly Capital Management Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Wednesday, September 30th will be given a dividend of $0.75 per share. The ex-dividend date is Wednesday, September 30th. This represents a $3.00 dividend on an annualized basis and a yield of 13.6%. Annaly Capital Management's dividend payout ratio (DPR) is presently 75.19%.

Analyst Ratings Changes

A number of analysts recently commented on NLY shares. JPMorgan Chase & Co. dropped their target price on shares of Annaly Capital Management from $26.00 to $24.00 and set an "overweight" rating on the stock in a report on Friday, July 24th. Zacks Research lowered shares of Annaly Capital Management from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 31st. Wells Fargo & Company dropped their price target on Annaly Capital Management from $25.00 to $24.00 and set an "overweight" rating on the stock in a report on Thursday, July 23rd. Royal Bank Of Canada reiterated an "outperform" rating and set a $25.00 price objective on shares of Annaly Capital Management in a research report on Wednesday, June 3rd. Finally, Piper Sandler raised their price objective on Annaly Capital Management from $24.50 to $25.00 and gave the stock an "overweight" rating in a research note on Thursday, July 2nd. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $24.33.

Hedge Funds Weigh In On Annaly Capital Management

A number of large investors have recently made changes to their positions in the business. Fourth Dimension Wealth LLC boosted its holdings in shares of Annaly Capital Management by 76.9% during the fourth quarter. Fourth Dimension Wealth LLC now owns 1,150 shares of the real estate investment trust's stock worth $26,000 after purchasing an additional 500 shares during the period. Root Financial Partners LLC lifted its position in Annaly Capital Management by 585.6% in the 1st quarter. Root Financial Partners LLC now owns 1,330 shares of the real estate investment trust's stock worth $28,000 after buying an additional 1,136 shares in the last quarter. Mcguire Capital Advisors Inc. acquired a new stake in shares of Annaly Capital Management during the 4th quarter valued at $31,000. TD Private Client Wealth LLC boosted its stake in shares of Annaly Capital Management by 361.3% during the 4th quarter. TD Private Client Wealth LLC now owns 1,504 shares of the real estate investment trust's stock valued at $34,000 after buying an additional 1,178 shares during the period. Finally, Markowski Investments purchased a new position in shares of Annaly Capital Management during the 2nd quarter valued at $37,000. Institutional investors and hedge funds own 51.56% of the company's stock.

About Annaly Capital Management

Annaly Capital Management, Inc is a Maryland-based mortgage real estate investment trust that invests in and manages a portfolio of mortgage-related assets. The company's primary business is providing capital to the U.S. housing market through investments in agency mortgage-backed securities, which are guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae.

In addition to agency securities, Annaly invests in residential credit assets and mortgage servicing rights. These investments provide exposure to different segments of the residential mortgage market, while the company uses financing, hedging and portfolio management strategies to manage interest-rate and other market risks.

Founded in 1996, Annaly primarily operates in the United States and is internally managed.

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