Dynex Capital (NYSE:DX) Sets New 12-Month High – Time to Buy?

Dynex Capital, Inc. (NYSE:DX)’s stock price hit a new 52-week high during trading on Thursday . The stock traded as high as $14.93 and last traded at $14.6610, with a volume of 8406421 shares trading hands. The stock had previously closed at $14.74.

Dynex Capital News Summary

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

• Positive Sentiment: Analyst upgrade — Jones Trading raised its price target to $15.25 and maintained a Buy rating, providing a near-term upside thesis that likely supported buying interest. Benzinga: Jones Trading Price Target Raise
• Positive Sentiment: Q4 call highlights strong operating performance: the company and coverage note “record economic returns” and a strategic shift that management says supports growth — this underpins the bull case on improved 2025 earnings power. Q4 Earnings Call Highlights
• Positive Sentiment: Investor coverage and model updates argue 2025 earnings strength plus governance changes could materially improve the stock’s outlook, drawing tactical buyers. Does Dynex’s 2025 Earnings Strength and Governance Shift Change The Bull Case?
• Positive Sentiment: High-yield preferred share coverage: a 9% preferred yield story has attracted income-seeking demand and may lift sentiment around DX’s capital structure. 9% High Dividend Yield From Dynex Capital Preferred Share
• Neutral Sentiment: Valuation check: several pieces assess DX after recent momentum — some argue it still looks reasonably valued on NAV and yield, others caution limited upside without sustained earnings. These analyses may keep trading range-bound. Assessing Dynex Capital (DX) Valuation
• Neutral Sentiment: Q4 materials and transcript released — useful for modeling (presentation and full call transcript available), but they present mixed signals: strong revenue/economic returns vs. an EPS miss that complicates near-term optics. Q4 Results – Earnings Call Presentation
• Negative Sentiment: Dividend sustainability concerns — critical commentary argues DX’s “fat yield” may be misleading (drivers of yield and payout durability questioned), which likely pressured some holders and contributed to selling. Dynex Capital’s Fat Yield Still Doesn’t Make Sense

Analysts Set New Price Targets

A number of research analysts recently issued reports on the company. Jones Trading boosted their price target on Dynex Capital from $14.00 to $15.25 and gave the company a “buy” rating in a report on Tuesday. UBS Group set a $13.25 target price on Dynex Capital and gave the company a “neutral” rating in a research note on Wednesday, October 8th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Dynex Capital in a research note on Monday, December 29th. Finally, Keefe, Bruyette & Woods boosted their price objective on shares of Dynex Capital from $14.00 to $14.50 and gave the company an “outperform” rating in a research report on Thursday, December 18th. Two equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, Dynex Capital currently has a consensus rating of “Moderate Buy” and a consensus target price of $14.33.

Dynex Capital Stock Down 0.5%

The company has a market capitalization of $2.15 billion, a P/E ratio of 7.19 and a beta of 0.98. The company has a 50-day moving average of $13.99 and a two-hundred day moving average of $13.22. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.01.

Dynex Capital (NYSE:DX) last posted its quarterly earnings data on Monday, January 26th. The real estate investment trust reported $0.22 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.26). Dynex Capital had a return on equity of 7.72% and a net margin of 59.80%.The firm had revenue of $202.00 million during the quarter, compared to the consensus estimate of $59.41 million. On average, research analysts predict that Dynex Capital, Inc. will post 1.94 EPS for the current year.

Dynex Capital Announces Dividend

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

Hedge Funds Weigh In On Dynex Capital

A number of hedge funds have recently added to or reduced their stakes in DX. AQR Capital Management LLC lifted its position in Dynex Capital by 54.6% in the 1st quarter. AQR Capital Management LLC now owns 103,183 shares of the real estate investment trust’s stock valued at $1,343,000 after acquiring an additional 36,455 shares in the last quarter. Goldman Sachs Group Inc. lifted its holdings in shares of Dynex Capital by 86.7% during the first quarter. Goldman Sachs Group Inc. now owns 804,419 shares of the real estate investment trust’s stock valued at $10,474,000 after purchasing an additional 373,610 shares in the last quarter. Wealth Enhancement Advisory Services LLC purchased a new stake in shares of Dynex Capital during the second quarter valued at $300,000. KLP Kapitalforvaltning AS increased its holdings in Dynex Capital by 45.3% in the 2nd quarter. KLP Kapitalforvaltning AS now owns 19,900 shares of the real estate investment trust’s stock worth $246,000 after buying an additional 6,200 shares in the last quarter. Finally, PDS Planning Inc increased its holdings in Dynex Capital by 22.1% in the 2nd quarter. PDS Planning Inc now owns 31,082 shares of the real estate investment trust’s stock worth $380,000 after buying an additional 5,635 shares in the last quarter. 38.34% of the stock is currently owned by hedge funds and other institutional investors.

About Dynex Capital

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.