Investors Buy High Volume of AGNC Investment Put Options (NASDAQ:AGNC)

Key Points

• Unusual bearish options activity: Investors purchased 37,938 put options on AGNC Investment, 57% above its average daily volume.
• AGNC shares fell 1.0% to $10.62, while analysts maintained a generally cautious outlook with an average “Hold” rating and a consensus price target of $11.11.
• The mortgage REIT reported quarterly EPS of $0.40, exceeding estimates, and declared a monthly $0.12 dividend, representing an annualized yield of approximately 13.6%.

AGNC Investment Corp. (NASDAQ:AGNC - Get Free Report) was the target of some unusual options trading on Tuesday. Stock investors acquired 37,938 put options on the company. This represents an increase of 57% compared to the average daily volume of 24,159 put options.

Analyst Ratings Changes

Several research firms have weighed in on AGNC. JPMorgan Chase & Co. reiterated a "neutral" rating and set a $11.50 target price (up from $11.00) on shares of AGNC Investment in a research note on Friday, July 17th. Weiss Ratings upgraded shares of AGNC Investment from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, August 17th. Wells Fargo & Company cut their target price on shares of AGNC Investment from $12.00 to $11.00 and set an "overweight" rating on the stock in a report on Thursday, July 23rd. Keefe, Bruyette & Woods cut their target price on shares of AGNC Investment from $12.00 to $11.00 and set a "market perform" rating on the stock in a report on Wednesday, July 22nd. Finally, Piper Sandler lifted their target price on AGNC Investment from $11.50 to $12.00 and gave the company an "overweight" rating in a research note on Thursday, July 2nd. Four research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, AGNC Investment has an average rating of "Hold" and a consensus price target of $11.11.

AGNC Investment Stock Down 1.0%

NASDAQ AGNC traded down $0.11 during trading hours on Tuesday, hitting $10.62. The company had a trading volume of 11,919,627 shares, compared to its average volume of 18,390,721. AGNC Investment has a fifty-two week low of $9.62 and a fifty-two week high of $12.19. The business has a fifty day simple moving average of $10.89 and a 200-day simple moving average of $10.69. The firm has a market cap of $12.59 billion, a P/E ratio of 5.59 and a beta of 1.32.

AGNC Investment (NASDAQ:AGNC - Get Free Report) last announced its quarterly earnings results on Monday, July 20th. The real estate investment trust reported $0.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.38 by $0.02. The company had revenue of $305.00 million during the quarter, compared to the consensus estimate of $1.06 billion. AGNC Investment had a net margin of 57.94% and a return on equity of 17.96%. During the same quarter in the previous year, the company posted ($0.17) earnings per share. Equities analysts forecast that AGNC Investment will post 1.6 EPS for the current fiscal year.

AGNC Investment Announces Dividend

The company also recently disclosed a monthly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 31st will be given a $0.12 dividend. The ex-dividend date is Monday, August 31st. This represents a c) annualized dividend and a yield of 13.6%. AGNC Investment's dividend payout ratio (DPR) is currently 75.79%.

Insider Activity

In related news, EVP Bernice Bell sold 5,000 shares of the company's stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $11.00, for a total transaction of $55,000.00. Following the sale, the executive vice president directly owned 406,947 shares of the company's stock, valued at approximately $4,476,417. This represents a 1.21% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.40% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Delta Asset Management LLC TN bought a new stake in shares of AGNC Investment during the second quarter valued at approximately $25,000. Danske Bank A S acquired a new position in shares of AGNC Investment during the second quarter worth approximately $26,000. Avion Wealth grew its holdings in AGNC Investment by 286.3% in the 1st quarter. Avion Wealth now owns 2,727 shares of the real estate investment trust's stock worth $27,000 after buying an additional 2,021 shares in the last quarter. N.E.W. Advisory Services LLC bought a new position in AGNC Investment in the 2nd quarter worth approximately $28,000. Finally, Osbon Capital Management LLC acquired a new stake in AGNC Investment in the 2nd quarter valued at approximately $28,000. Institutional investors own 38.28% of the company's stock.

AGNC Investment Company Profile

AGNC Investment Corp. is a self-managed real estate investment trust (REIT) that primarily acquires and manages a portfolio of residential mortgage-backed securities guaranteed by U.S. government-sponsored enterprises such as Ginnie Mae, Fannie Mae and Freddie Mac. The company employs a leveraged total return strategy, borrowing against its securities to enhance income potential while using interest rate hedges to manage risk. AGNC's investment objective is to generate attractive monthly dividends and long-term capital appreciation for its shareholders.

Founded in 2008 and headquartered in Bethesda, Maryland, AGNC focuses exclusively on U.S.

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