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

Key Points

• ARMOUR Residential REIT shares hit a new 52-week low, falling 3.7% to around $12.67 and trading below both their 50-day and 200-day moving averages.
• Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $18.50; Weiss Ratings downgraded the stock to “sell,” while Zacks upgraded it to “hold.”
• The REIT continues to offer a substantial monthly dividend of $0.24, equivalent to a 22.7% annualized yield, while its latest quarterly earnings of $0.72 per share matched analyst expectations.

ARMOUR Residential REIT, Inc. (NYSE:ARR - Get Free Report)'s share price reached a new 52-week low on Monday. The company traded as low as $12.85 and last traded at $12.6670, with a volume of 752,831 shares. The stock had previously closed at $13.20.

Analysts Set New Price Targets

ARR has been the subject of several research reports. Weiss Ratings lowered shares of 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 research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $18.50.

ARMOUR Residential REIT Trading Down 3.7%

The company has a market capitalization of $1.80 billion, a P/E ratio of 3.41 and a beta of 1.42. The stock's fifty day moving average is $15.21 and its 200 day moving average is $16.39.

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

ARMOUR Residential REIT Announces Dividend

The firm 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 $0.24 dividend. The ex-dividend date of this dividend is Thursday, October 15th. This represents a $2.88 dividend on an annualized basis and a dividend yield of 22.7%. ARMOUR Residential REIT's dividend payout ratio (DPR) is presently 77.42%.

Insider Buying and Selling at ARMOUR Residential REIT

In related news, Chairman Daniel Staton sold 35,583 shares of the company's stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $15.86, for a total transaction of $564,346.38. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.19% of the stock is owned by insiders.

Institutional Investors Weigh In On ARMOUR Residential REIT

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ARR. Envestnet Asset Management Inc. purchased a new position in ARMOUR Residential REIT during the second quarter valued at $6,536,000. State Street Corp lifted its stake in 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 purchasing an additional 619,020 shares in the last quarter. The Manufacturers Life Insurance Company lifted its stake 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 worth $1,032,000 after purchasing an additional 9,038 shares in the last quarter. Integrated Wealth Concepts LLC purchased a new stake in ARMOUR Residential REIT in the 2nd quarter worth $100,000. Finally, NewEdge Advisors LLC boosted its holdings in shares of ARMOUR Residential REIT by 34,376.5% during the 2nd quarter. NewEdge Advisors LLC now owns 5,861 shares of the real estate investment trust's stock valued at $102,000 after purchasing an additional 5,844 shares during the last quarter. Institutional investors own 54.17% of the company's stock.

ARMOUR Residential REIT Company Profile

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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