ARMOUR Residential REIT (NYSE:ARR) Sets New 1-Year Low - Time to Sell?

Key Points

• ARMOUR Residential REIT fell to a new 52-week low, trading as low as $13.30, well below its 50-day and 200-day moving averages of $15.68 and $16.53.
• Analyst sentiment is mixed but leans toward caution: the consensus rating is “Hold” with an $18.50 price target, while Weiss Ratings recently downgraded the stock to “Sell.”
• The company continues to offer a high monthly dividend of $0.24 per share, representing a 21.4% annualized yield and a 77.42% payout ratio; institutional investors own 54.17% of the shares.

ARMOUR Residential REIT, Inc. (NYSE:ARR - Get Free Report) hit a new 52-week low during trading on Wednesday. The stock traded as low as $13.30 and last traded at $13.4650, with a volume of 5395342 shares. The stock had previously closed at $13.53.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on ARR. Weiss Ratings cut ARMOUR Residential REIT from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, August 19th. Zacks Research upgraded shares of ARMOUR Residential REIT from a "strong sell" rating to a "hold" rating in a research report on Tuesday, July 21st. Two investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $18.50.

ARMOUR Residential REIT Price Performance

The stock has a market cap of $1.91 billion, a P/E ratio of 3.62 and a beta of 1.42. The firm's fifty day moving average price is $15.68 and its two-hundred day moving average price is $16.53.

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

ARMOUR Residential REIT Announces Dividend

The firm also recently disclosed a monthly dividend, which will be paid on Thursday, October 29th. Stockholders of record on Thursday, October 15th will be issued a dividend of $0.24 per share. The ex-dividend date of this dividend is Thursday, October 15th. This represents a $2.88 annualized dividend and a dividend yield of 21.4%. ARMOUR Residential REIT's payout ratio is presently 77.42%.

Insider Activity at ARMOUR Residential REIT

In related news, Chairman Daniel Staton sold 35,583 shares of the company's stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $15.86, for a total value of $564,346.38. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Insiders own 0.19% of the company's stock.

Institutional Investors Weigh In On ARMOUR Residential REIT

Hedge funds have recently bought and sold shares of the stock. State Street Corp increased its holdings in shares of ARMOUR Residential REIT by 15.0% in the 2nd 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 last quarter. Bank of New York Mellon Corp bought a new stake in shares of ARMOUR Residential REIT during the 2nd quarter worth $13,757,000. First Trust Advisors LP lifted its holdings in shares of ARMOUR Residential REIT by 234.6% during the 1st quarter. First Trust Advisors LP now owns 664,247 shares of the real estate investment trust's stock worth $11,080,000 after acquiring an additional 465,733 shares during the last quarter. Principal Financial Group Inc. grew its position in ARMOUR Residential REIT by 2.0% in the first quarter. Principal Financial Group Inc. now owns 543,935 shares of the real estate investment trust's stock worth $9,073,000 after acquiring an additional 10,592 shares in the last quarter. Finally, Ascentis Wealth Management LLC grew its position in ARMOUR Residential REIT by 11.3% in the second quarter. Ascentis Wealth Management LLC now owns 395,000 shares of the real estate investment trust's stock worth $6,893,000 after acquiring an additional 40,000 shares in the last quarter. 54.17% of the stock is currently owned by institutional investors.

About ARMOUR Residential REIT

ARMOUR Residential REIT, Inc is a real estate investment trust that invests primarily in residential mortgage-backed securities (RMBS) issued or guaranteed by U.S. government agencies and government-sponsored enterprises, including Ginnie Mae, Fannie Mae and Freddie Mac. Its portfolio may include fixed-rate and adjustable-rate mortgage securities, as well as other investments related to the U.S. residential mortgage market.

The company seeks to generate income from its investments and manages interest-rate and prepayment risks through portfolio composition, financing arrangements and hedging strategies.

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