Dynex Capital (NYSE:DX) Reaches New 1-Year Low - What's Next?

Key Points

• Dynex Capital shares fell to a new 52-week low of $10.88, trading about 1.3% lower and well below their 50-day and 200-day moving averages.
• 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 declared a monthly dividend of $0.17, equivalent to $2.04 annually and an 18.6% yield; an insider also purchased 2,500 shares, while institutional ownership stands at 38.34%.

Dynex Capital, Inc. (NYSE:DX - Get Free Report) hit a new 52-week low on Thursday. The company traded as low as $10.88 and last traded at $10.9150, with a volume of 1049832 shares trading hands. The stock had previously closed at $11.14.

Analysts Set New Price Targets

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

Dynex Capital Trading Down 1.3%

The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.16 and a current ratio of 1.16. The business has a fifty day simple moving average of $12.61 and a 200 day simple moving average of $12.91. The company has a market cap of $2.72 billion, a P/E ratio of 4.18 and a beta of 0.96.

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

Dynex Capital Announces Dividend

The business also recently declared a monthly dividend, which will be paid on Thursday, October 1st. Investors of record on Monday, September 21st will be issued a $0.17 dividend. The ex-dividend date of this dividend is Monday, September 21st. This represents a $2.04 annualized dividend and a dividend yield of 18.6%. Dynex Capital's dividend payout ratio (DPR) is 77.57%.

Insider Buying and Selling

In related news, CIO John Jr purchased 2,500 shares of the company's stock in a transaction on Friday, September 25th. The shares were bought at an average cost of $11.18 per share, for a total transaction of $27,950.00. Following the transaction, the executive owned 58,695 shares of the company's stock, valued at $656,210.10. This represents a 4.45% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this link. Insiders own 0.76% of the company's stock.

Hedge Funds Weigh In On Dynex Capital

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

About Dynex Capital

Dynex Capital, Inc NYSE: DX is a mortgage real estate investment trust that invests in mortgage-related assets. Its portfolio primarily consists of agency mortgage-backed securities, including securities backed by residential and commercial mortgages, as well as other mortgage assets.

The company uses financing arrangements, including repurchase agreements, to support its investment activities and seeks to generate income from the spread between the returns on its investments and its financing and operating costs.

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