Dynex Capital (NYSE:DX) Reaches New 1-Year Low - Should You Sell?

Key Points

• Dynex Capital hit a new 52-week low, trading as low as $10.19, below its previous close of $10.42.
• Analyst views are mixed, with MarketBeat reporting an average rating of Hold and an average price target of $13.38.
• The company reported quarterly EPS of $0.38, slightly below estimates, and revenue of $101.56 million versus $113.48 million expected. Its monthly dividend is $0.17 per share, equivalent to a 19.9% yield; the reported payout ratio is 971.43%.

Dynex Capital, Inc. (NYSE:DX - Get Free Report) shares reached a new 52-week low during mid-day trading on Thursday. The stock traded as low as $10.19 and last traded at $10.2650, with a volume of 682,701 shares changing hands. The stock had previously closed at $10.42.

Analyst Upgrades and Downgrades

A number of research analysts have commented on DX shares. BTIG Research set a $12.00 price objective on Dynex Capital and gave the company a "buy" rating in a report on Tuesday, October 6th. Keefe, Bruyette & Woods reissued an "outperform" rating on shares of Dynex Capital in a report on Tuesday, October 20th. Weiss Ratings cut shares of Dynex Capital from a "sell (d+)" rating to a "sell (d)" rating in a research report on Friday, October 30th. Finally, JonesTrading decreased their price target on shares of Dynex Capital from $14.75 to $12.50 and set a "buy" rating on the stock in a research note on Monday, October 19th. Three investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $13.38.

Dynex Capital Stock Performance

The company has a fifty day simple moving average of $11.35 and a two-hundred day simple moving average of $12.77. The stock has a market capitalization of $2.66 billion, a price-to-earnings ratio of 48.74 and a beta of 1.01.

Dynex Capital (NYSE:DX - Get Free Report) last released its earnings results on Monday, October 19th. The real estate investment trust reported $0.38 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.39 by ($0.01). The company had revenue of $101.56 million for the quarter, compared to analyst estimates of $113.48 million. Dynex Capital had a positive return on equity of 10.30% and a negative net margin of 4.65%.

Dynex Capital Announces Dividend

The company also recently disclosed a monthly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Monday, November 23rd will be given a dividend of $0.17 per share. This represents a $2.04 annualized dividend and a yield of 19.9%. The ex-dividend date is Monday, November 23rd. Dynex Capital's payout ratio is currently 971.43%.

Insider Transactions at Dynex Capital

In other Dynex Capital news, CEO Byron Boston acquired 9,180 shares of the company's stock in a transaction that occurred on Tuesday, October 20th. The stock was acquired at an average cost of $10.89 per share, for a total transaction of $99,970.20. Following the transaction, the chief executive officer directly owned 892,747 shares in the company, valued at $9,722,014.83. This represents a 1.04% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Smriti Popenoe bought 12,000 shares of the company's stock in a transaction dated Tuesday, October 20th. The stock was bought at an average cost of $13.05 per share, with a total value of $156,600.00. Following the acquisition, the chief executive officer directly owned 541,098 shares of the company's stock, valued at approximately $7,061,328.90. The trade was a 2.27% increase in their position. The SEC filing for this purchase provides additional information. In the last quarter, insiders acquired 24,680 shares of company stock valued at $295,220. Corporate insiders own 0.76% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Integrity Alliance LLC. boosted its holdings in shares of Dynex Capital by 6.9% during the 2nd quarter. Integrity Alliance LLC. now owns 16,683 shares of the real estate investment trust's stock valued at $219,000 after acquiring an additional 1,081 shares in the last quarter. IMG Wealth Management Inc. increased its holdings in Dynex Capital by 55.9% in the 1st quarter. IMG Wealth Management Inc. now owns 3,410 shares of the real estate investment trust's stock worth $44,000 after purchasing an additional 1,222 shares in the last quarter. Pictet Asset Management Holding SA increased its holdings in Dynex Capital by 10.4% in the 2nd quarter. Pictet Asset Management Holding SA now owns 23,872 shares of the real estate investment trust's stock worth $313,000 after purchasing an additional 2,245 shares in the last quarter. Versant Capital Management Inc raised its position in Dynex Capital by 891.8% in the second quarter. Versant Capital Management Inc now owns 2,896 shares of the real estate investment trust's stock valued at $38,000 after purchasing an additional 2,604 shares during the last quarter. Finally, Allworth Financial LP raised its position in Dynex Capital by 5.1% in the second quarter. Allworth Financial LP now owns 55,923 shares of the real estate investment trust's stock valued at $733,000 after purchasing an additional 2,689 shares during the last quarter. 38.34% of the stock is currently owned by institutional investors and hedge funds.

About Dynex Capital

Dynex Capital, Inc. is a mortgage real estate investment trust (REIT) that invests primarily in mortgage-backed securities issued or guaranteed by U.S. government agencies. Its portfolio includes securities backed by residential and commercial mortgages. The company manages its portfolio of mortgage assets and related financing with the goal of generating income for shareholders. Its investments are primarily tied to the U.S. mortgage market. Founded in 1987, Dynex Capital is based in Glen Allen, Virginia.

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.