Annaly Capital Management (NYSE:NLY) Stock Jumps 3.3% After Earnings Beat

Key Points

• Annaly Capital Management shares rose 3.3% after the mortgage REIT reported quarterly EPS of $0.80, beating the $0.77 consensus estimate, and revenue of $1.93 billion versus estimates of $637.41 million.
• The company declared a quarterly dividend of $0.75, equivalent to $3.00 annually and a 16.4% yield, with a 75.19% payout ratio.
• Analyst sentiment remains generally positive, with a “Moderate Buy” consensus rating and an average price target of $23.61, despite several firms lowering their targets and Zacks downgrading the stock to “hold.”

Annaly Capital Management Inc (NYSE:NLY - Get Free Report) shares were up 3.3% during mid-day trading on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $18.34 and last traded at $18.3090. 10,693,844 shares changed hands during trading, an increase of 28% from the average daily volume of 8,330,290 shares. The stock had previously closed at $17.72.

The real estate investment trust reported $0.80 EPS for the quarter, beating analysts' consensus estimates of $0.77 by $0.03. The firm had revenue of $1.93 billion for the quarter, compared to analyst estimates of $637.41 million. Annaly Capital Management had a net margin of 43.66% and a return on equity of 16.00%.

Annaly Capital Management Dividend Announcement

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

Analyst Ratings Changes

Several brokerages have recently commented on NLY. JPMorgan Chase & Co. reduced their target price on Annaly Capital Management from $26.00 to $24.00 and set an "overweight" rating on the stock in a report on Friday, July 24th. Zacks Research cut Annaly Capital Management from a "strong-buy" rating to a "hold" rating in a report on Monday, August 31st. Wells Fargo & Company dropped their price target on 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 report on Tuesday, October 6th. Finally, BTIG Research set a $21.00 price objective on Annaly Capital Management and gave the stock a "buy" rating in a research note on Tuesday, October 6th. One research 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's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $23.61.

Hedge Funds Weigh In On Annaly Capital Management

A number of institutional investors have recently modified their holdings of the stock. Sumitomo Mitsui DS Asset Management Company Ltd raised its stake in Annaly Capital Management by 1.0% in the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 78,437 shares of the real estate investment trust's stock valued at $1,482,000 after purchasing an additional 782 shares in the last quarter. NFSG Corp increased its holdings in shares of Annaly Capital Management by 6.7% in the 3rd quarter. NFSG Corp now owns 127,107 shares of the real estate investment trust's stock worth $2,401,000 after buying an additional 8,036 shares during the last quarter. Howard Financial Services LTD. raised its position in shares of Annaly Capital Management by 2.4% during the 3rd quarter. Howard Financial Services LTD. now owns 46,764 shares of the real estate investment trust's stock valued at $883,000 after buying an additional 1,092 shares in the last quarter. Columbus Macro LLC lifted its holdings in shares of Annaly Capital Management by 6.2% during the 3rd quarter. Columbus Macro LLC now owns 607,136 shares of the real estate investment trust's stock worth $11,469,000 after acquiring an additional 35,633 shares during the last quarter. Finally, Triumph Capital Management lifted its holdings in shares of Annaly Capital Management by 9.4% during the 3rd quarter. Triumph Capital Management now owns 88,506 shares of the real estate investment trust's stock worth $1,682,000 after acquiring an additional 7,604 shares during the last quarter. 51.56% of the stock is owned by institutional investors.

Annaly Capital Management Stock Up 3.3%

The company has a market capitalization of $13.80 billion, a PE ratio of 4.59, a price-to-earnings-growth ratio of 1.43 and a beta of 1.21. The firm's 50-day moving average is $21.20 and its 200-day moving average is $21.90.

Annaly Capital Management Company Profile

Annaly Capital Management, Inc is a diversified capital manager and mortgage real estate investment trust listed on the New York Stock Exchange under the symbol NLY. The company primarily invests in and manages residential mortgage-related assets, seeking to generate income through interest-rate spreads, financing, and portfolio management.

Annaly's investment activities have historically focused on agency mortgage-backed securities, which are backed by federally sponsored entities or government agencies.

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