AGNC Investment (NASDAQ:AGNC) Reaches New 1-Year Low - Here's Why

Key Points

• AGNC Investment shares fell to a new 52-week low of $9.63, down about 3%, amid trading below both its 50-day and 200-day moving averages.
• Analyst sentiment remains mixed: the stock has an average “Hold” rating and a consensus price target of $11.11, despite some upgrades and multiple target-price cuts.
• AGNC reported quarterly EPS of $0.40, exceeding the $0.38 consensus estimate, and declared a monthly dividend of $0.12 per share, representing an approximately 15% annualized yield.

AGNC Investment Corp. (NASDAQ:AGNC - Get Free Report) shares reached a new 52-week low during trading on Thursday . The stock traded as low as $9.63 and last traded at $9.6150, with a volume of 33365731 shares. The stock had previously closed at $9.91.

Analyst Ratings Changes

Several brokerages have weighed in on AGNC. Weiss Ratings upgraded AGNC Investment from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday, August 17th. Wells Fargo & Company cut their price target on AGNC Investment from $12.00 to $11.00 and set an "overweight" rating on the stock in a research note on Thursday, July 23rd. Compass Point lowered shares of AGNC Investment from a "buy" rating to a "neutral" rating and set a $11.50 price objective for the company. in a research note on Friday, July 17th. Keefe, Bruyette & Woods dropped 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, JPMorgan Chase & Co. reissued a "neutral" rating and set a $11.50 target price (up from $11.00) on shares of AGNC Investment in a research report on Friday, July 17th. Four analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $11.11.

AGNC Investment Trading Down 3.0%

The firm has a 50-day simple moving average of $10.65 and a 200-day simple moving average of $10.57. The firm has a market cap of $11.40 billion, a P/E ratio of 5.06 and a beta of 1.32.

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

AGNC Investment Dividend Announcement

The company also recently declared a monthly dividend, which will be paid on Friday, October 9th. Shareholders of record on Wednesday, September 30th will be given a dividend of $0.12 per share. This represents a c) annualized dividend and a dividend yield of 15.0%. The ex-dividend date of this dividend is Wednesday, September 30th. AGNC Investment's dividend payout ratio is presently 75.79%.

Insider Buying and Selling at AGNC Investment

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

Institutional Investors Weigh In On AGNC Investment

Hedge funds and other institutional investors have recently bought and sold shares of the company. BlackRock Inc. purchased a new position in AGNC Investment in the second quarter worth $704,076,000. Geode Capital Management LLC lifted its holdings in shares of AGNC Investment by 5.8% during the 4th quarter. Geode Capital Management LLC now owns 29,097,741 shares of the real estate investment trust's stock valued at $312,275,000 after purchasing an additional 1,596,244 shares during the last quarter. Norges Bank acquired a new stake in shares of AGNC Investment in the 4th quarter worth $141,830,000. Equity Investment Corp purchased a new position in AGNC Investment during the 2nd quarter worth $106,123,000. Finally, Bank of America Corp DE purchased a new position in AGNC Investment during the 2nd quarter worth $77,501,000. Hedge funds and other institutional investors own 38.28% of the company's stock.

About AGNC Investment

AGNC Investment Corp. is a real estate investment trust that invests primarily in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by a U.S. government-sponsored enterprise or agency, such as Fannie Mae, Freddie Mac or Ginnie Mae. These investments are commonly referred to as agency mortgage-backed securities.

The company seeks to generate income from its investment portfolio, primarily through the difference between the yield on its mortgage assets and its borrowing costs.

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