Annaly Capital Management (NYSE:NLY) Hits New 52-Week Low - Time to Sell?

Key Points

• Annaly Capital Management shares fell to a new 52-week low of $18.25, well below their 50-day and 200-day moving averages of roughly $22. The stock has a market capitalization of $13.79 billion and a beta of 1.21.
• Despite the price decline, analysts maintain a consensus “Moderate Buy” rating with a $24.33 price target. Recent ratings include several buys and overweights, though Zacks downgraded the stock to “hold.”
• Annaly reported quarterly EPS of $0.79, exceeding the $0.75 consensus estimate, and announced a $0.75 quarterly dividend. The dividend implies a 16.4% annualized yield and a 75.19% payout ratio.

Annaly Capital Management Inc (NYSE:NLY - Get Free Report)'s stock price hit a new 52-week low on Tuesday. The stock traded as low as $18.25 and last traded at $18.2950, with a volume of 15422567 shares changing hands. The stock had previously closed at $18.50.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the stock. BTIG Research set a $24.00 price target on shares of Annaly Capital Management in a research note on Wednesday, June 17th. Wells Fargo & Company decreased their target price on shares of Annaly Capital Management from $25.00 to $24.00 and set an "overweight" rating for the company in a report on Thursday, July 23rd. Weiss Ratings reiterated a "hold (c)" rating on shares of Annaly Capital Management in a research note on Friday, July 10th. Zacks Research cut shares of Annaly Capital Management from a "strong-buy" rating to a "hold" rating in a report on Monday, August 31st. Finally, Piper Sandler raised their price target on shares of Annaly Capital Management from $24.50 to $25.00 and gave the company an "overweight" rating in a research report on Thursday, July 2nd. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $24.33.

Annaly Capital Management Stock Performance

The stock has a 50-day simple moving average of $22.14 and a two-hundred day simple moving average of $22.11. The firm has a market cap of $13.79 billion, a PE ratio of 4.59, a price-to-earnings-growth ratio of 1.45 and a beta of 1.21.

Annaly Capital Management (NYSE:NLY - Get Free Report) last announced its quarterly earnings results on Tuesday, July 21st. The real estate investment trust reported $0.79 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.75 by $0.04. Annaly Capital Management had a net margin of 43.66% and a return on equity of 16.00%. The firm had revenue of $1.82 billion for the quarter, compared to the consensus estimate of $639.80 million. As a group, sell-side analysts anticipate that Annaly Capital Management Inc will post 3.09 EPS for the current fiscal year.

Annaly Capital Management Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Wednesday, September 30th will be issued a $0.75 dividend. The ex-dividend date is Wednesday, September 30th. This represents a $3.00 annualized dividend and a yield of 16.4%. Annaly Capital Management's dividend payout ratio (DPR) is currently 75.19%.

Institutional Investors Weigh In On Annaly Capital Management

A number of hedge funds have recently added to or reduced their stakes in NLY. Root Financial Partners LLC grew its holdings in shares of Annaly Capital Management by 585.6% in the first quarter. Root Financial Partners LLC now owns 1,330 shares of the real estate investment trust's stock worth $28,000 after acquiring an additional 1,136 shares during the period. Markowski Investments bought a new position in Annaly Capital Management in the second quarter valued at about $37,000. Hilton Head Capital Partners LLC purchased a new position in Annaly Capital Management in the fourth quarter worth about $38,000. SHP Wealth Management purchased a new position in Annaly Capital Management in the fourth quarter worth about $43,000. Finally, Fourth Dimension Wealth LLC boosted its position in Annaly Capital Management by 30.3% in the second quarter. Fourth Dimension Wealth LLC now owns 2,150 shares of the real estate investment trust's stock worth $48,000 after purchasing an additional 500 shares during the last quarter. 51.56% of the stock is currently owned by hedge funds and other institutional investors.

Annaly Capital Management Company Profile

Annaly Capital Management, Inc is a real estate investment trust that invests in and manages a portfolio of mortgage-related assets. The company's primary business is focused on generating income from investments in agency mortgage-backed securities, which are guaranteed by a U.S. government-sponsored enterprise or government agency.

In addition to agency securities, Annaly invests in residential credit assets, including non-agency mortgage-backed securities and other residential loans.

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