Dynex Capital (NYSE:DX) Posts Earnings Results, Misses Expectations By $0.26 EPS

Dynex Capital (NYSE:DX) announced its earnings results on Monday. The real estate investment trust reported $0.22 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.48 by ($0.26), FiscalAI reports. Dynex Capital had a return on equity of 7.72% and a net margin of 59.80%.The company had revenue of $202.00 million during the quarter, compared to analysts’ expectations of $59.41 million.

Here are the key takeaways from Dynex Capital’s conference call:

• Dynex reported strong results with a 21.7% total economic return for 2025, Q4 TER of 10.2%, a $2.00 common dividend for the year, and year‑over‑year book value appreciation.
• The company materially expanded scale and liquidity — having raised $1.5 billion over the past 13 months, a ~ $3 billion equity market cap, about $1.4 billion in cash/unencumbered securities, and roughly $22 billion in TBAs and mortgages.
• Policy shifted market dynamics — the announced $200 billion GSE retained‑portfolio buying has tightened spreads and removed a portion of downside tail risk, leading to a more stable but potentially lower upside spread regime; management cites hedged ROEs in the mid‑teens at ~7x leverage.
• Portfolio positioning emphasizes security selection and risk management — avoiding the most prepayment‑sensitive collateral, using options to manage convexity, and finding specified‑pool value especially in the five‑coupon area.
• Operating outlook and costs — leverage ended Q4 near ~7.3x with a target in the low‑8x range; G&A improved to ~2.1% of equity but Q4 incentive accruals raised near‑term expenses, and management expects the expense ratio to remain around ~2% of capital until scale increases further.

Dynex Capital Trading Up 0.8%

NYSE DX opened at $14.72 on Wednesday. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.01. The firm has a market capitalization of $2.16 billion, a PE ratio of 7.22 and a beta of 0.98. The stock’s 50 day moving average is $13.97 and its 200 day moving average is $13.21. Dynex Capital has a twelve month low of $10.79 and a twelve month high of $14.78.

Dynex Capital Dividend Announcement

The company also recently announced a monthly dividend, which will be paid on Monday, February 2nd. Shareholders of record on Wednesday, January 21st will be issued a dividend of $0.17 per share. The ex-dividend date is Wednesday, January 21st. This represents a c) dividend on an annualized basis and a dividend yield of 13.9%. Dynex Capital’s dividend payout ratio is 137.84%.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on DX. Keefe, Bruyette & Woods boosted their price objective on shares of Dynex Capital from $14.00 to $14.50 and gave the stock an “outperform” rating in a report on Thursday, December 18th. Jones Trading lifted their price objective on Dynex Capital from $14.00 to $15.25 and gave the stock a “buy” rating in a report on Tuesday. Weiss Ratings restated a “hold (c)” rating on shares of Dynex Capital in a report on Monday, December 29th. Finally, UBS Group set a $13.25 price target on shares of Dynex Capital and gave the company a “neutral” rating in a research report on Wednesday, October 8th. 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, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $14.33.

Key Dynex Capital News

Here are the key news stories impacting Dynex Capital this week:

• Positive Sentiment: Jones Trading raised its price target to $15.25 and kept a “buy” rating, giving visible analyst support that likely helped the stock. Benzinga
• Positive Sentiment: Company presentation and earnings-call coverage highlighted “record economic returns,” stronger net interest income and a strategic growth wave led by enhanced leadership — messaging that supports upside expectations for future earnings and dividends. TipRanks: Earnings Call Highlights
• Neutral Sentiment: Detailed materials — the Q4 slide deck and full earnings-call transcript — are available for investors who want to dig into drivers (portfolio yields, mortgage pipeline, book value trends and capital actions). Use these to verify management’s outlook and assumptions. Seeking Alpha Transcript
• Negative Sentiment: Reported EPS of $0.22 missed the consensus $0.48, and some outlets framed the quarter as a “slip” due to higher expenses — a headline risk that can cap near-term upside despite strong revenue and NII figures. MarketBeat: Earnings Summary

Institutional Trading of Dynex Capital

A number of hedge funds have recently made changes to their positions in DX. Millennium Management LLC raised its position in shares of Dynex Capital by 79.8% in the 3rd quarter. Millennium Management LLC now owns 2,235,018 shares of the real estate investment trust’s stock worth $27,468,000 after purchasing an additional 992,269 shares during the last quarter. Balyasny Asset Management L.P. boosted its holdings in shares of Dynex Capital by 184.2% during the 3rd quarter. Balyasny Asset Management L.P. now owns 1,137,900 shares of the real estate investment trust’s stock valued at $13,985,000 after acquiring an additional 737,561 shares during the last quarter. Qube Research & Technologies Ltd lifted its position in Dynex Capital by 49.6% during the third quarter. Qube Research & Technologies Ltd now owns 1,198,884 shares of the real estate investment trust’s stock valued at $14,734,000 after purchasing an additional 397,390 shares during the period. Goldman Sachs Group Inc. boosted its position in Dynex Capital by 86.7% in the first quarter. Goldman Sachs Group Inc. now owns 804,419 shares of the real estate investment trust’s stock worth $10,474,000 after purchasing an additional 373,610 shares during the last quarter. Finally, First Trust Advisors LP purchased a new position in shares of Dynex Capital in the second quarter worth approximately $4,438,000. 38.34% of the stock is owned by institutional investors.

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.