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

Key Points

• ARMOUR Residential REIT shares hit a new 52-week low, trading as low as $13.94 and last changing hands near $13.90, below the previous close of $14.11.
• Analyst sentiment is mixed, with the stock carrying a consensus “Hold” rating and an $18.50 target price. Recent ratings included a downgrade from Weiss Ratings and an upgrade from Zacks Research.
• The REIT reported quarterly earnings in line with estimates at $0.72 per share and announced a monthly dividend of $0.24 per share, equivalent to a 20.5% annualized yield.

ARMOUR Residential REIT, Inc. (NYSE:ARR - Get Free Report)'s share price hit a new 52-week low during trading on Friday. The company traded as low as $13.94 and last traded at $13.9020, with a volume of 904269 shares traded. The stock had previously closed at $14.11.

Wall Street Analysts Forecast Growth

ARR has been the topic of a number of recent analyst reports. Weiss Ratings lowered shares of ARMOUR Residential REIT from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Wednesday, August 19th. Zacks Research upgraded ARMOUR Residential REIT from a "strong sell" rating to a "hold" rating in a research report on Tuesday, July 21st. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $18.50.

ARMOUR Residential REIT Trading Down 0.5%

The company has a market capitalization of $1.99 billion, a price-to-earnings ratio of 3.78 and a beta of 1.36. The company's 50 day simple moving average is $16.09 and its 200-day simple moving average is $16.73.

ARMOUR Residential REIT (NYSE:ARR - Get Free Report) last released its earnings results on Wednesday, July 22nd. The real estate investment trust reported $0.72 earnings per share for the quarter, meeting the consensus estimate of $0.72. ARMOUR Residential REIT had a net margin of 44.90% and a return on equity of 15.10%. The firm had revenue of $113.29 million during the quarter, compared to analyst estimates of $111.98 million. Sell-side analysts anticipate that ARMOUR Residential REIT, Inc. will post 2.93 EPS for the current year.

ARMOUR Residential REIT Announces Dividend

The business also recently announced a monthly dividend, which will be paid on Thursday, October 29th. Shareholders of record on Thursday, October 15th will be issued a dividend of $0.24 per share. This represents a $2.88 annualized dividend and a yield of 20.5%. The ex-dividend date is Thursday, October 15th. ARMOUR Residential REIT's dividend payout ratio (DPR) is 77.42%.

Insider Buying and Selling at ARMOUR Residential REIT

In related news, Chairman Daniel Staton sold 35,583 shares of the business's stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $15.86, for a total value of $564,346.38. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.19% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Envestnet Asset Management Inc. bought a new position in shares of ARMOUR Residential REIT in the second quarter worth about $6,536,000. State Street Corp boosted its stake in ARMOUR Residential REIT by 15.0% during the 2nd quarter. State Street Corp now owns 4,745,078 shares of the real estate investment trust's stock valued at $82,802,000 after purchasing an additional 619,020 shares during the period. The Manufacturers Life Insurance Company grew its holdings in ARMOUR Residential REIT by 18.0% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 59,141 shares of the real estate investment trust's stock valued at $1,032,000 after buying an additional 9,038 shares during the last quarter. Integrated Wealth Concepts LLC acquired a new stake in ARMOUR Residential REIT in the 2nd quarter valued at approximately $100,000. Finally, NewEdge Advisors LLC increased its position in ARMOUR Residential REIT by 34,376.5% in the 2nd quarter. NewEdge Advisors LLC now owns 5,861 shares of the real estate investment trust's stock worth $102,000 after buying an additional 5,844 shares during the period. Institutional investors and hedge funds 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 (RMBS). Its portfolio is focused mainly on securities issued or guaranteed by government-sponsored enterprises and U.S. government agencies, including Fannie Mae, Freddie Mac and Ginnie Mae.

The company seeks to generate income from its investment portfolio and finances its activities through arrangements such as repurchase agreements. ARMOUR also uses interest-rate hedging strategies and other financial instruments to manage exposure to changing interest rates, financing costs and market conditions.

ARMOUR Residential REIT was organized in 2007 and is externally managed by ARMOUR Capital Management LP.

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