Federal Agricultural Mortgage (NYSE:AGM) Stock Breaks Below Two Hundred Day Moving Average on Disappointing Earnings

Key Points

• AGM shares fell below their 200-day moving average, trading as low as $172.10 and last quoted at $180.18, after disappointing earnings.
• Quarterly earnings were $4.82 per share, missing the $5.20 consensus estimate, while revenue of $125.25 million exceeded analysts’ $121.29 million forecast.
• The company paid a quarterly dividend of $1.60 per share, equivalent to a 3.6% yield. Analysts’ consensus rating was Hold, with a $255 price target.

Federal Agricultural Mortgage Corporation (NYSE:AGM - Get Free Report) crossed below its two hundred day moving average during trading on Friday following a weaker than expected earnings announcement. The stock has a two hundred day moving average of $189.59 and traded as low as $172.10. Federal Agricultural Mortgage shares last traded at $180.1830, with a volume of 180,271 shares traded.

The credit services provider reported $4.82 earnings per share for the quarter, missing the consensus estimate of $5.20 by ($0.38). The firm had revenue of $125.25 million during the quarter, compared to analyst estimates of $121.29 million. Federal Agricultural Mortgage had a net margin of 29.98% and a return on equity of 18.90%.

Federal Agricultural Mortgage Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were issued a $1.60 dividend. The ex-dividend date was Tuesday, September 15th. This represents a $6.40 dividend on an annualized basis and a dividend yield of 3.6%. Federal Agricultural Mortgage's payout ratio is 34.95%.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. Keefe, Bruyette & Woods raised 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. Weiss Ratings reiterated a "hold (c)" rating on shares of Federal Agricultural Mortgage in a research note on Friday, September 25th. Finally, Zacks Research lowered Federal Agricultural Mortgage from a "strong-buy" rating to a "hold" rating in a report on Tuesday, September 29th. One research analyst has rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $255.00.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Public Employees Retirement System of Ohio acquired a new stake in shares of Federal Agricultural Mortgage during the second quarter worth $27,000. Ancora Advisors LLC acquired a new stake in shares of Federal Agricultural Mortgage in the 2nd quarter valued at approximately $42,000. Nykredit A S bought a new position in Federal Agricultural Mortgage in the second quarter valued at about $50,000. Versant Capital Management Inc increased its stake in Federal Agricultural Mortgage by 3,862.5% in the 2nd quarter. Versant Capital Management Inc now owns 317 shares of the credit services provider's stock valued at $63,000 after buying an additional 309 shares during the last quarter. Finally, Nisa Investment Advisors LLC boosted its holdings in shares of Federal Agricultural Mortgage by 80.2% in the 3rd quarter. Nisa Investment Advisors LLC now owns 337 shares of the credit services provider's stock worth $70,000 after buying an additional 150 shares during the last quarter. 68.03% of the stock is owned by institutional investors and hedge funds.

Federal Agricultural Mortgage Price Performance

The business's 50-day simple moving average is $211.65 and its 200-day simple moving average is $189.59. The stock has a market cap of $1.95 billion, a PE ratio of 9.53, a PEG ratio of 0.77 and a beta of 1.02. The company has a quick ratio of 0.56, a current ratio of 0.56 and a debt-to-equity ratio of 1.82.

Federal Agricultural Mortgage Company Profile

Federal Agricultural Mortgage Corporation, commonly known as Farmer Mac, is a federally chartered corporation that provides a secondary market for agricultural and rural lending. Established by Congress in 1988, the company is intended to improve the availability of credit for American agriculture and rural communities.

Farmer Mac purchases, guarantees and finances agricultural real estate loans, rural housing loans and loans supporting rural utilities and infrastructure. Its products and services also include financing for agricultural production and equipment, as well as liquidity and credit support for lenders through loan purchases, guarantees and securitization programs.

The company serves agricultural lenders, rural utilities, cooperatives and other eligible financial institutions across the United States.

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