Federal Agricultural Mortgage (NYSE:AGM) Shares Cross Above Two Hundred Day Moving Average - Here's Why

Key Points

• Federal Agricultural Mortgage shares crossed above their 200-day moving average, reaching $225.48 and last trading near $223.84, compared with a 200-day average of $187.99.
• Analyst sentiment is favorable: the stock has an average “Buy” rating and a consensus price target of $255, while Keefe, Bruyette & Woods raised its target to that level and Zacks upgraded the shares to “Strong Buy.”
• The company beat quarterly expectations with $5.40 EPS versus $4.87 expected and $125.01 million in revenue, and declared a $1.60 quarterly dividend, equivalent to a 2.9% annualized yield.

Federal Agricultural Mortgage Corporation (NYSE:AGM - Get Free Report) crossed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $187.99 and traded as high as $225.48. Federal Agricultural Mortgage shares last traded at $223.8350, with a volume of 107,282 shares trading hands.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on AGM shares. Keefe, Bruyette & Woods increased their target price on Federal Agricultural Mortgage from $228.00 to $255.00 and gave the stock an "outperform" rating in a research report on Monday, August 3rd. Zacks Research raised Federal Agricultural Mortgage from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 3rd. Finally, Weiss Ratings upgraded Federal Agricultural Mortgage from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, June 29th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Buy" and a consensus price target of $255.00.

Federal Agricultural Mortgage Stock Down 0.6%

The stock has a market capitalization of $2.43 billion, a price-to-earnings ratio of 12.22, a price-to-earnings-growth ratio of 0.84 and a beta of 0.97. The firm has a 50-day moving average of $220.43 and a 200 day moving average of $187.99. The company has a current ratio of 0.56, a quick ratio of 0.56 and a debt-to-equity ratio of 1.82.

Federal Agricultural Mortgage (NYSE:AGM - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The credit services provider reported $5.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.87 by $0.53. The company had revenue of $125.01 million during the quarter, compared to the consensus estimate of $113.51 million. Federal Agricultural Mortgage had a net margin of 29.98% and a return on equity of 18.90%. On average, sell-side analysts anticipate that Federal Agricultural Mortgage Corporation will post 20.72 earnings per share for the current year.

Federal Agricultural Mortgage Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be issued a $1.60 dividend. The ex-dividend date is Tuesday, September 15th. This represents a $6.40 dividend on an annualized basis and a yield of 2.9%. Federal Agricultural Mortgage's payout ratio is currently 34.95%.

Hedge Funds Weigh In On Federal Agricultural Mortgage

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Sequoia Financial Advisors LLC grew its stake in shares of Federal Agricultural Mortgage by 9.9% during the second quarter. Sequoia Financial Advisors LLC now owns 13,028 shares of the credit services provider's stock valued at $2,596,000 after acquiring an additional 1,175 shares in the last quarter. Integrated Wealth Concepts LLC acquired a new position in shares of Federal Agricultural Mortgage in the second quarter worth about $93,000. Nykredit A S acquired a new position in shares of Federal Agricultural Mortgage in the second quarter worth about $50,000. VELA Investment Management LLC boosted its holdings in Federal Agricultural Mortgage by 6.1% in the second quarter. VELA Investment Management LLC now owns 16,648 shares of the credit services provider's stock valued at $3,317,000 after purchasing an additional 952 shares during the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in Federal Agricultural Mortgage in the second quarter valued at about $239,000. 68.03% of the stock is owned by hedge funds and other institutional investors.

About Federal Agricultural Mortgage

Federal Agricultural Mortgage Corporation, commonly known as Farmer Mac, is a federally chartered corporation that provides a secondary market for agricultural and rural infrastructure loans. Its activities help agricultural lenders obtain funding and liquidity, supporting the availability of credit for farmers, ranchers, rural homeowners and rural businesses across the United States.

Farmer Mac purchases eligible loans and provides loan guarantees, securitization and other financing solutions through its business segments.

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