Annaly Capital Management (NYSE:NLY) Sets New 52-Week Low - Should You Sell?

Key Points

• Annaly Capital Management shares hit a new 52-week low, falling to $19.70 intraday from a prior close of $20.32 and trading below both its 50-day and 200-day moving averages.
• Despite the decline, analysts maintain a consensus “Moderate Buy” rating with an average price target of $24.33, while the company recently exceeded quarterly earnings expectations.
• Annaly announced a quarterly dividend of $0.75 per share, equivalent to a 15.4% annualized yield; institutional investors own 51.56% of the company’s stock.

Annaly Capital Management Inc (NYSE:NLY - Get Free Report)'s stock price reached a new 52-week low during mid-day trading on Wednesday. The stock traded as low as $19.70 and last traded at $19.6230, with a volume of 120226 shares traded. The stock had previously closed at $20.32.

Analysts Set New Price Targets

A number of research firms recently commented on NLY. Piper Sandler boosted their price target on Annaly Capital Management from $24.50 to $25.00 and gave the stock an "overweight" rating in a report on Thursday, July 2nd. JPMorgan Chase & Co. cut their price objective on shares of Annaly Capital Management from $26.00 to $24.00 and set an "overweight" rating for the company in a report on Friday, July 24th. BTIG Research set a $24.00 price objective on shares of Annaly Capital Management in a research report on Wednesday, June 17th. Royal Bank Of Canada reissued an "outperform" rating and issued a $25.00 target price on shares of Annaly Capital Management in a report on Wednesday, June 3rd. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Annaly Capital Management in a research report on Friday, July 10th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, Annaly Capital Management currently has a consensus rating of "Moderate Buy" and an average target price of $24.33.

Annaly Capital Management Price Performance

The company has a market capitalization of $14.68 billion, a PE ratio of 4.90, a P/E/G ratio of 1.60 and a beta of 1.16. The business has a 50-day moving average of $22.45 and a 200 day moving average of $22.21.

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

Annaly Capital Management Dividend Announcement

The firm 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 of this dividend is Wednesday, September 30th. This represents a $3.00 dividend on an annualized basis and a dividend yield of 15.4%. Annaly Capital Management's dividend payout ratio (DPR) is 75.19%.

Institutional Investors Weigh In On Annaly Capital Management

Several large investors have recently bought and sold shares of the business. BlackRock Inc. grew its stake in shares of Annaly Capital Management by 6.7% in the 2nd quarter. BlackRock Inc. now owns 87,219,586 shares of the real estate investment trust's stock worth $1,950,230,000 after buying an additional 5,485,296 shares in the last quarter. State Street Corp increased its holdings in shares of Annaly Capital Management by 4.5% in the 2nd quarter. State Street Corp now owns 29,426,379 shares of the real estate investment trust's stock worth $679,468,000 after buying an additional 1,272,235 shares during the last quarter. Norges Bank purchased a new stake in shares of Annaly Capital Management during the 4th quarter valued at about $162,477,000. Bank of New York Mellon Corp lifted its holdings in shares of Annaly Capital Management by 6.0% in the 4th quarter. Bank of New York Mellon Corp now owns 4,714,355 shares of the real estate investment trust's stock valued at $105,413,000 after acquiring an additional 265,437 shares during the last quarter. Finally, KBC Group NV lifted its holdings in shares of Annaly Capital Management by 44.2% in the 1st quarter. KBC Group NV now owns 4,976,006 shares of the real estate investment trust's stock valued at $105,243,000 after acquiring an additional 1,525,251 shares during the last quarter. Institutional investors own 51.56% of the company's stock.

About Annaly Capital Management

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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