Wall Street Zen Downgrades Dynex Capital (NYSE:DX) to Sell

Key Points

• Wall Street Zen downgraded Dynex Capital from “hold” to “sell” in a research note issued Saturday.
• Other analysts remain mixed: UBS kept a neutral rating with a $14.50 target, while JonesTrading has a buy rating and a $15.25 target; the overall consensus is still Moderate Buy.
• Dynex Capital recently reported quarterly EPS of $0.31, missing estimates by a penny, and revenue came in well below expectations, even as the stock traded around $13.40 with a market cap of about $2.88 billion.

Dynex Capital (NYSE:DX - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday.

A number of other brokerages have also recently issued reports on DX. UBS Group reissued a "neutral" rating and issued a $14.50 target price (up from $14.00) on shares of Dynex Capital in a research report on Friday, April 24th. Keefe, Bruyette & Woods reissued an "outperform" rating on shares of Dynex Capital in a research report on Thursday, January 29th. Weiss Ratings reissued a "hold (c)" rating on shares of Dynex Capital in a research report on Friday, March 27th. Finally, JonesTrading boosted their target price on shares of Dynex Capital from $14.00 to $15.25 and gave the company a "buy" rating in a research report on Tuesday, January 27th. Two research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $14.75.

Dynex Capital Price Performance

NYSE:DX opened at $13.40 on Friday. Dynex Capital has a one year low of $11.70 and a one year high of $14.93. The company has a market cap of $2.88 billion, a P/E ratio of 7.93 and a beta of 0.97. The firm's fifty day moving average price is $13.25 and its two-hundred day moving average price is $13.65.

Dynex Capital (NYSE:DX - Get Free Report) last released its quarterly earnings data on Monday, April 20th. The real estate investment trust reported $0.31 EPS for the quarter, missing the consensus estimate of $0.32 by ($0.01). Dynex Capital had a net margin of 34.75% and a return on equity of 7.86%. The company had revenue of ($59.11) million during the quarter, compared to analyst estimates of $67.37 million.

Institutional Investors Weigh In On Dynex Capital

Institutional investors and hedge funds have recently bought and sold shares of the company. GAMMA Investing LLC lifted its position in Dynex Capital by 98.5% during the fourth quarter. GAMMA Investing LLC now owns 1,870 shares of the real estate investment trust's stock worth $26,000 after purchasing an additional 928 shares during the period. Federation des caisses Desjardins du Quebec bought a new stake in Dynex Capital during the fourth quarter worth about $28,000. IMG Wealth Management Inc. bought a new stake in Dynex Capital during the fourth quarter worth about $31,000. Triumph Capital Management bought a new stake in Dynex Capital during the third quarter worth about $29,000. Finally, Northwestern Mutual Wealth Management Co. lifted its position in Dynex Capital by 124.3% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,378 shares of the real estate investment trust's stock worth $33,000 after purchasing an additional 1,318 shares during the period. Institutional investors own 38.34% of the company's stock.

Dynex Capital Company Profile

Dynex Capital, Inc is a mortgage real estate investment trust (REIT) that specializes in acquiring and managing mortgage-related assets. The company's primary business involves investing in residential mortgage-backed securities (RMBS), including agency-backed pools issued or guaranteed by government-sponsored entities such as Fannie Mae, Freddie Mac and Ginnie Mae, as well as selected non-agency RMBS. Dynex Capital seeks to generate net interest income by earning interest on its portfolio while employing leverage through secured repurchase agreements and other debt facilities.

In pursuing its investment objectives, Dynex Capital manages portfolio duration and interest rate exposures, with a focus on preserving capital and optimizing yield over the economic cycle.

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