AGNC Investment (NASDAQ:AGNC) Reaches New 12-Month Low - Here's What Happened

Key Points

• AGNC Investment fell to a new 52-week low of $8.41, below its 50-day and 200-day moving averages, amid generally cautious analyst sentiment. The stock carries an average “Hold” rating and an average price target of $10.89.
• The mortgage REIT reported quarterly EPS of $0.40, exceeding the consensus estimate of $0.38, while revenue came in at $305 million. Analysts expect full-year EPS of approximately $1.60.
• AGNC declared a monthly dividend of $0.12 per share, equating to $1.44 annually and a 17.1% yield, with a payout ratio of 75.79%.

AGNC Investment Corp. (NASDAQ:AGNC - Get Free Report)'s stock price hit a new 52-week low on Monday. The company traded as low as $8.41 and last traded at $8.4150, with a volume of 18,228,859 shares. The stock had previously closed at $8.72.

Analyst Upgrades and Downgrades

AGNC has been the topic of a number of recent research reports. Wall Street Zen cut shares of AGNC Investment from a "hold" rating to a "sell" rating in a report on Saturday. JPMorgan Chase & Co. reiterated a "neutral" rating and set a $11.50 price target (up from $11.00) on shares of AGNC Investment in a research report on Friday, July 17th. Piper Sandler cut their price target on AGNC Investment from $12.00 to $10.00 and set an "overweight" rating on the stock in a report on Friday, October 9th. Wells Fargo & Company reduced their price objective on AGNC Investment from $12.00 to $11.00 and set an "overweight" rating for the company in a research report on Thursday, July 23rd. Finally, Weiss Ratings downgraded AGNC Investment from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday, October 8th. Three investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $10.89.

AGNC Investment Price Performance

The business has a fifty day moving average of $10.01 and a 200-day moving average of $10.41. The stock has a market capitalization of $9.96 billion, a price-to-earnings ratio of 4.42 and a beta of 1.36.

AGNC Investment (NASDAQ:AGNC - Get Free Report) last issued its quarterly earnings results on Monday, July 20th. The real estate investment trust reported $0.40 earnings per share for the quarter, beating analysts' consensus estimates of $0.38 by $0.02. AGNC Investment had a net margin of 57.94% and a return on equity of 17.96%. The company had revenue of $305.00 million during the quarter, compared to the consensus estimate of $1.06 billion. During the same period in the prior year, the company earned ($0.17) EPS. As a group, research analysts anticipate that AGNC Investment Corp. will post 1.60 EPS for the current year.

AGNC Investment Dividend Announcement

The company also recently disclosed a monthly dividend, which will be paid on Tuesday, November 10th. Shareholders of record on Friday, October 30th will be given a dividend of $0.12 per share. This represents a $1.44 annualized dividend and a yield of 17.1%. The ex-dividend date is Friday, October 30th. AGNC Investment's payout ratio is presently 75.79%.

Insider Buying and Selling

In other AGNC Investment news, EVP Bernice Bell sold 5,000 shares of AGNC Investment stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $11.00, for a total transaction of $55,000.00. Following the transaction, the executive vice president owned 406,947 shares of the company's stock, valued at $4,476,417. The trade was a 1.21% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders own 0.40% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in AGNC. Foguth Wealth Management LLC. bought a new position in AGNC Investment during the third quarter valued at about $128,000. Parisi Gray Wealth Management boosted its stake in shares of AGNC Investment by 11.3% during the 3rd quarter. Parisi Gray Wealth Management now owns 56,142 shares of the real estate investment trust's stock worth $509,000 after acquiring an additional 5,713 shares in the last quarter. Fortitude Advisory Group L.L.C. boosted its stake in shares of AGNC Investment by 5.8% during the 3rd quarter. Fortitude Advisory Group L.L.C. now owns 75,234 shares of the real estate investment trust's stock worth $682,000 after acquiring an additional 4,153 shares in the last quarter. State of Alaska Department of Revenue acquired a new position in shares of AGNC Investment during the 3rd quarter valued at about $1,018,000. Finally, Longboard Asset Management LP acquired a new position in shares of AGNC Investment during the 3rd quarter valued at about $113,000. 38.28% of the stock is owned by hedge funds and other institutional investors.

About AGNC Investment

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

The company seeks to generate income through the difference between the yield on its investment portfolio and its borrowing costs, while managing interest-rate, prepayment and other market risks.

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