Dynex Capital (NYSE:DX) Shares Gap Down After Earnings Miss

Key Points

• Dynex Capital shares fell after the mortgage REIT reported quarterly EPS of $0.38, missing the consensus estimate of $0.39. The stock opened at $10.59, down from its prior close of $10.93.
• The company announced a $0.17 monthly dividend, equal to $2.04 annually and a 19.4% yield, with a payout ratio of 77.57%.
• Analyst sentiment is mixed: Dynex has an average rating of “Hold” and a $13.94 price target, while Weiss Ratings recently downgraded the stock to “Sell.”

Dynex Capital, Inc. (NYSE:DX - Get Free Report)'s stock price gapped down before the market opened on Monday following a weaker than expected earnings announcement. The stock had previously closed at $10.93, but opened at $10.59. Dynex Capital shares last traded at $10.5450, with a volume of 1,565,302 shares.

The real estate investment trust reported $0.38 EPS for the quarter, missing the consensus estimate of $0.39 by ($0.01). Dynex Capital had a return on equity of 8.85% and a net margin of 49.18%.

Dynex Capital Dividend Announcement

The business also recently announced a monthly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Thursday, October 22nd will be paid a $0.17 dividend. This represents a $2.04 dividend on an annualized basis and a yield of 19.4%. The ex-dividend date is Thursday, October 22nd. Dynex Capital's dividend payout ratio (DPR) is presently 77.57%.

Analyst Ratings Changes

A number of analysts have commented on DX shares. Weiss Ratings downgraded shares of Dynex Capital from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday. Keefe, Bruyette & Woods restated an "outperform" rating on shares of Dynex Capital in a report on Tuesday, July 21st. JonesTrading reaffirmed a "buy" rating and set a $14.75 target price on shares of Dynex Capital in a research report on Tuesday, July 21st. Finally, BTIG Research set a $12.00 price objective on Dynex Capital and gave the stock a "buy" rating in a research report on Tuesday, October 6th. Three research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Dynex Capital currently has an average rating of "Hold" and an average price target of $13.94.

Insider Buying and Selling at Dynex Capital

In other news, CIO John Jr bought 2,500 shares of the stock in a transaction dated Friday, September 25th. The shares were acquired at an average price of $11.18 per share, with a total value of $27,950.00. Following the acquisition, the executive owned 58,695 shares in the company, valued at $656,210.10. This trade represents a 4.45% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Insiders own 0.76% of the company's stock.

Hedge Funds Weigh In On Dynex Capital

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Parisi Gray Wealth Management bought a new position in shares of Dynex Capital in the third quarter worth about $151,000. Firethorn Wealth Partners LLC bought a new position in shares of Dynex Capital in the third quarter worth about $144,000. Focus Financial Network Inc. acquired a new position in shares of Dynex Capital during the third quarter worth approximately $139,000. Fermata Advisors LLC lifted its position in shares of Dynex Capital by 47.2% during the third quarter. Fermata Advisors LLC now owns 25,386 shares of the real estate investment trust's stock worth $283,000 after purchasing an additional 8,136 shares in the last quarter. Finally, WoodTrust Financial Corp lifted its position in shares of Dynex Capital by 13.3% during the third quarter. WoodTrust Financial Corp now owns 34,000 shares of the real estate investment trust's stock worth $379,000 after purchasing an additional 4,000 shares in the last quarter. 38.34% of the stock is currently owned by institutional investors and hedge funds.

Dynex Capital Price Performance

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 company's 50 day moving average price is $12.15 and its 200 day moving average price is $12.75. The firm has a market capitalization of $2.61 billion, a P/E ratio of 4.01 and a beta of 0.98.

Dynex Capital Company Profile

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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