Federal Agricultural Mortgage (NYSE:AGM) Stock Falls 8.7% Following Weak Earnings

Key Points

• Federal Agricultural Mortgage shares fell 8.7% to $180.68 after the company reported quarterly earnings per share of $4.82, below analysts’ $5.20 consensus.
• Quarterly revenue was $125.25 million, beating the $121.29 million estimate. The company also paid a quarterly dividend of $1.60 per share, equivalent to a 3.5% annual yield.
• Analysts’ consensus rating is Hold, with a $255 price target; institutional investors own about 68% of the stock.

Federal Agricultural Mortgage Corporation (NYSE:AGM - Get Free Report)'s stock price was down 8.7% during trading on Friday following a weaker than expected earnings announcement. The stock traded as low as $172.10 and last traded at $180.68. 44,376 shares traded hands during trading, a decline of 63% from the average daily volume of 118,827 shares. The stock had previously closed at $197.97.

The credit services provider reported $4.82 earnings per share for the quarter, missing analysts' consensus estimates of $5.20 by ($0.38). The company had revenue of $125.25 million during the quarter, compared to the consensus estimate 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 Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were paid a dividend of $1.60 per share. The ex-dividend date was Tuesday, September 15th. This represents a $6.40 annualized dividend and a yield of 3.5%. Federal Agricultural Mortgage's dividend payout ratio (DPR) is 34.95%.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on the stock. Keefe, Bruyette & Woods upped their target price on shares of Federal Agricultural Mortgage from $228.00 to $255.00 and gave the stock an "outperform" rating in a research note on Monday, August 3rd. Weiss Ratings reiterated a "hold (c)" rating on shares of Federal Agricultural Mortgage in a report on Friday, September 25th. Finally, Zacks Research lowered shares of Federal Agricultural Mortgage from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, September 29th. One analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, Federal Agricultural Mortgage has a consensus rating of "Hold" and a consensus price target of $255.00.

Hedge Funds Weigh In On Federal Agricultural Mortgage

Several institutional investors have recently modified their holdings of the business. Mirae Asset Global Investments Co. Ltd. purchased a new stake in Federal Agricultural Mortgage during the third quarter worth about $1,838,000. Vise Technologies Inc. purchased a new position in Federal Agricultural Mortgage in the third quarter valued at about $216,000. Pullen Investment Management LLC boosted its stake in Federal Agricultural Mortgage by 0.6% in the third quarter. Pullen Investment Management LLC now owns 19,110 shares of the credit services provider's stock valued at $3,954,000 after acquiring an additional 116 shares during the last quarter. Nisa Investment Advisors LLC grew its position in shares of Federal Agricultural Mortgage by 80.2% during the 3rd quarter. Nisa Investment Advisors LLC now owns 337 shares of the credit services provider's stock valued at $70,000 after acquiring an additional 150 shares during the period. Finally, Sequoia Financial Advisors LLC grew its position in shares of Federal Agricultural Mortgage by 9.9% during the 2nd 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 during the period. 68.03% of the stock is owned by institutional investors.

Federal Agricultural Mortgage Stock Down 8.7%

The stock's 50-day moving average price is $212.49 and its two-hundred day moving average price is $189.53. The stock has a market capitalization of $1.96 billion, a P/E ratio of 9.86, a P/E/G ratio of 0.76 and a beta of 1.02. 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 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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