ARMOUR Residential REIT (NYSE:ARR) Hits New 1-Year Low - What's Next?

Key Points

• ARMOUR Residential REIT shares hit a new 52-week low, falling to $12.13 and trading below both their 50-day and 200-day moving averages.
• Analyst sentiment is mixed but leans toward caution: the stock has an average “Hold” rating and a consensus price target of $16.56, while several firms recently cut their targets.
• The company reported quarterly EPS in line with estimates at $0.71 and revenue above expectations, while maintaining a monthly dividend of $0.24 per share—an annualized yield of approximately 23.6%.

ARMOUR Residential REIT, Inc. (NYSE:ARR - Get Free Report)'s stock price hit a new 52-week low during trading on Tuesday. The stock traded as low as $12.13 and last traded at $12.2340, with a volume of 412,849 shares changing hands. The stock had previously closed at $12.41.

Analysts Set New Price Targets

ARR has been the subject of a number of recent analyst reports. Weiss Ratings downgraded shares of ARMOUR Residential REIT from a "sell (d+)" rating to a "sell (d)" rating in a report on Friday, October 23rd. JonesTrading reduced their price target on shares of ARMOUR Residential REIT from $19.00 to $15.25 and set a "buy" rating on the stock in a research report on Thursday, October 22nd. Zacks Research raised shares of ARMOUR Residential REIT from a "strong sell" rating to a "hold" rating in a research note on Tuesday, July 21st. Wall Street Zen downgraded shares of ARMOUR Residential REIT from a "sell" rating to a "strong sell" rating in a research report on Saturday, October 24th. Finally, B. Riley Financial lowered their price objective on shares of ARMOUR Residential REIT from $18.00 to $14.50 and set a "neutral" rating for the company in a research report on Friday, October 23rd. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $16.56.

ARMOUR Residential REIT Price Performance

The firm's fifty day moving average price is $14.35 and its 200-day moving average price is $16.48. The company has a market capitalization of $1.81 billion, a price-to-earnings ratio of -407.17 and a beta of 1.47.

ARMOUR Residential REIT (NYSE:ARR - Get Free Report) last announced its quarterly earnings results on Wednesday, October 21st. The real estate investment trust reported $0.71 EPS for the quarter, meeting analysts' consensus estimates of $0.71. The company had revenue of $121.70 million during the quarter, compared to analysts' expectations of $119.84 million. ARMOUR Residential REIT had a positive return on equity of 15.90% and a negative net margin of 5.09%. On average, research analysts predict that ARMOUR Residential REIT, Inc. will post 2.88 earnings per share for the current year.

ARMOUR Residential REIT Dividend Announcement

The company also recently announced a monthly dividend, which will be paid on Friday, November 27th. Shareholders of record on Monday, November 16th will be given a $0.24 dividend. The ex-dividend date is Monday, November 16th. This represents a $2.88 annualized dividend and a yield of 23.6%. ARMOUR Residential REIT's dividend payout ratio (DPR) is currently -9,600.00%.

Insider Activity at ARMOUR Residential REIT

In other news, Chairman Daniel Staton sold 35,583 shares of ARMOUR Residential REIT stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $15.86, for a total transaction of $564,346.38. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 0.19% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in ARR. Independent Financial Group LLC bought a new position in ARMOUR Residential REIT during the 1st quarter worth approximately $1,458,000. First Trust Advisors LP boosted its stake in shares of ARMOUR Residential REIT by 234.6% in the 1st quarter. First Trust Advisors LP now owns 664,247 shares of the real estate investment trust's stock valued at $11,080,000 after purchasing an additional 465,733 shares during the last quarter. Envestnet Asset Management Inc. bought a new stake in shares of ARMOUR Residential REIT in the 2nd quarter valued at $6,536,000. Bank of New York Mellon Corp acquired a new stake in shares of ARMOUR Residential REIT during the second quarter worth $13,757,000. Finally, State Street Corp increased its position in shares of ARMOUR Residential REIT by 15.0% during the second quarter. State Street Corp now owns 4,745,078 shares of the real estate investment trust's stock worth $82,802,000 after buying an additional 619,020 shares during the period. Institutional investors own 54.17% of the company's stock.

About ARMOUR Residential REIT

ARMOUR Residential REIT, Inc is a real estate investment trust that invests primarily in residential mortgage-backed securities. Its portfolio generally consists of securities issued or guaranteed by U.S. government-sponsored enterprises, including Fannie Mae and Freddie Mac, or by U.S. government agencies such as Ginnie Mae.

The company invests in a range of agency mortgage securities, including fixed-rate and adjustable-rate mortgage pass-through securities, collateralized mortgage obligations, specified pools and to-be-announced securities.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.