Dynex Capital (NYSE:DX) Hits New 52-Week Low - Time to Sell?

Key Points

• Dynex Capital shares fell to a new 52-week low of $11.87, below the 50-day and 200-day moving averages of $12.83 and $13.00, respectively.
• Analysts remain generally positive, with a consensus “Moderate Buy” rating and an average price target of $14.56, implying potential upside from the current price.
• The mortgage REIT reported quarterly EPS in line with estimates at $0.36 and announced a monthly dividend of $0.17 per share, representing an annualized yield of approximately 17.3%.

Shares of Dynex Capital, Inc. (NYSE:DX - Get Free Report) hit a new 52-week low on Wednesday . The stock traded as low as $11.87 and last traded at $11.8450, with a volume of 1716529 shares changing hands. The stock had previously closed at $12.10.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on DX shares. Weiss Ratings reissued a "hold (c)" rating on shares of Dynex Capital in a report on Monday. Keefe, Bruyette & Woods reissued an "outperform" rating on shares of Dynex Capital in a research note on Tuesday, July 21st. JonesTrading reiterated a "buy" rating and issued a $14.75 price objective on shares of Dynex Capital in a research report on Tuesday, July 21st. Finally, BTIG Research set a $14.50 target price on Dynex Capital in a research note on Wednesday, June 17th. Two investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $14.56.

Dynex Capital Price Performance

The firm has a market capitalization of $2.92 billion, a PE ratio of 4.48 and a beta of 0.96. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.16 and a quick ratio of 1.16. The firm has a 50-day simple moving average of $12.83 and a 200-day simple moving average of $13.00.

Dynex Capital (NYSE:DX - Get Free Report) last released its quarterly earnings results on Monday, July 20th. The real estate investment trust reported $0.36 EPS for the quarter, meeting the consensus estimate of $0.36. Dynex Capital had a net margin of 49.18% and a return on equity of 8.85%. The firm had revenue of $302.75 million during the quarter, compared to analyst estimates of $103.62 million.

Dynex Capital Announces Dividend

The firm also recently announced a monthly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Monday, September 21st will be issued a dividend of $0.17 per share. This represents a c) dividend on an annualized basis and a yield of 17.3%. The ex-dividend date of this dividend is Monday, September 21st. Dynex Capital's dividend payout ratio is currently 77.57%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. raised its holdings in Dynex Capital by 14.6% in the 2nd quarter. BlackRock Inc. now owns 18,437,985 shares of the real estate investment trust's stock worth $241,722,000 after purchasing an additional 2,355,906 shares during the period. State Street Corp grew its holdings in Dynex Capital by 12.8% during the second quarter. State Street Corp now owns 5,113,743 shares of the real estate investment trust's stock valued at $67,862,000 after purchasing an additional 579,022 shares during the period. Wellington Management Group LLP increased its position in Dynex Capital by 142.9% in the second quarter. Wellington Management Group LLP now owns 2,221,800 shares of the real estate investment trust's stock worth $29,128,000 after buying an additional 1,307,100 shares in the last quarter. Callodine Capital Management LP purchased a new stake in Dynex Capital in the first quarter worth about $21,320,000. Finally, Segall Bryant & Hamill LLC bought a new position in shares of Dynex Capital in the first quarter worth about $19,581,000. Hedge funds and other institutional investors own 38.34% of the company's stock.

About Dynex Capital

Dynex Capital, Inc is a mortgage real estate investment trust (REIT) that invests primarily in residential and commercial mortgage-backed securities. Its portfolio generally focuses on agency securities, which are issued or guaranteed by U.S. government-sponsored entities such as Fannie Mae, Freddie Mac and Ginnie Mae.

The company finances its investments through repurchase agreements and other forms of secured borrowing and uses hedging strategies to manage interest-rate and financing risks.

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