AGNC Investment (NASDAQ:AGNC) Sets New 12-Month Low – Time to Sell?

AGNC Investment Corp. (NASDAQ:AGNC)’s share price reached a new 52-week low on Monday. The stock traded as low as $8.41 and last traded at $8.4150, with a volume of 18,228,859 shares changing hands. The stock had previously closed at $8.72.

Key Stories Impacting AGNC Investment

Here are the key news stories impacting AGNC Investment this week:

• Positive Sentiment: Management expects an 18%–20% return on equity, signaling confidence that attractive Agency mortgage-backed securities valuations and improved market conditions could support future performance. AGNC Investment: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: AGNC raised $992 million through an at-the-market stock offering, giving the mortgage REIT additional capital to invest in Agency MBS and manage leverage, although the issuance may dilute existing shareholders. AGNC Investment: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Management indicated that Agency MBS valuations are becoming more attractive after the quarter’s selloff, potentially creating upside if mortgage spreads stabilize or tighten. AGNC Investment Q3 Earnings Call Highlights Mortgage Market Pressure
• Neutral Sentiment: Third-quarter adjusted earnings were $0.37 per share, broadly in line with some analyst estimates, while revenue of approximately $1.20 billion exceeded the consensus cited by MarketBeat. However, other estimates characterized earnings and revenue as misses, reflecting differing consensus benchmarks. AGNC Investment Earnings Results
• Negative Sentiment: Tangible book value fell 16.9% to $7.13 per share as wider mortgage spreads, higher funding costs and weak Agency MBS performance pressured the portfolio. Spread income also declined for the third consecutive quarter. AGNC’s Q3: Book Value Is Plunging
• Negative Sentiment: The quarter included a reported $1.36 billion loss, while persistent inflation and elevated interest rates remain risks because AGNC’s leveraged portfolio is highly sensitive to rates and mortgage spreads. Recent insider activity also showed selling rather than buying. Is AGNC Investment Corp a Buy After Its Latest Earnings Report?

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the company. Wall Street Zen lowered AGNC Investment from a “hold” rating to a “sell” rating in a research report on Saturday. Keefe, Bruyette & Woods lowered their price target on AGNC Investment from $12.00 to $11.00 and set a “market perform” rating for the company in a research report on Wednesday, July 22nd. Compass Point lowered AGNC Investment from a “buy” rating to a “neutral” rating and set a $11.50 price target for the company. in a research report on Friday, July 17th. Piper Sandler dropped their price objective on AGNC Investment from $12.00 to $10.00 and set an “overweight” rating for the company in a research note on Friday, October 9th. Finally, Weiss Ratings downgraded AGNC Investment from a “buy (b-)” rating to a “hold (c+)” rating in a report on Thursday, October 8th. Three analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, AGNC Investment currently has a consensus rating of “Hold” and an average target price of $11.00.

AGNC Investment Stock Up 4.3%

The company’s 50-day moving average price is $9.92 and its 200-day moving average price is $10.39. The firm has a market cap of $10.43 billion, a price-to-earnings ratio of 880.88 and a beta of 1.36.

AGNC Investment (NASDAQ:AGNC) last announced its quarterly earnings data on Monday, October 19th. The real estate investment trust reported $0.37 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.37. AGNC Investment had a net margin of 2.45% and a return on equity of 18.38%. The firm had revenue of $1.20 billion during the quarter, compared to analysts’ expectations of $1.06 billion. On average, sell-side analysts predict that AGNC Investment Corp. will post 1.60 earnings per share for the current fiscal year.

AGNC Investment Dividend Announcement

The firm also recently declared a monthly dividend, which will be paid on Tuesday, November 10th. Shareholders of record on Friday, October 30th will be given a $0.12 dividend. This represents a $1.44 annualized dividend and a yield of 16.4%. The ex-dividend date of this dividend is Friday, October 30th. AGNC Investment’s dividend payout ratio (DPR) is currently 75.79%.

Insider Buying and Selling

In other AGNC Investment news, EVP Bernice Bell sold 5,000 shares of the business’s stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $11.00, for a total value of $55,000.00. Following the completion of the transaction, the executive vice president owned 406,947 shares in the company, valued at $4,476,417. The trade was a 1.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. 0.40% of the stock is owned by corporate insiders.

Institutional Trading of AGNC Investment

A number of large investors have recently modified their holdings of AGNC. Sowell Financial Services LLC increased its stake in AGNC Investment by 2.8% in the third quarter. Sowell Financial Services LLC now owns 274,300 shares of the real estate investment trust’s stock valued at $2,488,000 after purchasing an additional 7,357 shares during the period. Innova Wealth Partners raised its holdings in shares of AGNC Investment by 3.1% in the third quarter. Innova Wealth Partners now owns 166,209 shares of the real estate investment trust’s stock valued at $1,508,000 after buying an additional 4,965 shares during the last quarter. Nisa Investment Advisors LLC boosted its stake in shares of AGNC Investment by 3.4% during the third quarter. Nisa Investment Advisors LLC now owns 231,885 shares of the real estate investment trust’s stock worth $2,131,000 after buying an additional 7,595 shares during the period. Integrated Advisors Network LLC boosted its stake in shares of AGNC Investment by 6.9% during the third quarter. Integrated Advisors Network LLC now owns 106,043 shares of the real estate investment trust’s stock worth $962,000 after buying an additional 6,811 shares during the period. Finally, Diversify Advisory Services LLC grew its holdings in shares of AGNC Investment by 5.0% during the third quarter. Diversify Advisory Services LLC now owns 92,158 shares of the real estate investment trust’s stock worth $813,000 after buying an additional 4,417 shares during the last quarter. Hedge funds and other institutional investors own 38.28% of the company’s stock.

About AGNC Investment

AGNC Investment Corp. is a real estate investment trust (REIT) that invests primarily in residential mortgage pass-through securities and collateralized mortgage obligations for which principal and interest payments are guaranteed by a U.S. government-sponsored enterprise or a U.S. government agency. These investments are commonly referred to as agency mortgage-backed securities.

The company seeks to generate income through the difference between the yield on its investment portfolio and its borrowing costs, while managing interest-rate, prepayment and other market risks.