AGNC Investment (NASDAQ:AGNC) Stock Falls 1.6% – What’s Next?

Shares of AGNC Investment Corp. (NASDAQ:AGNC) were down 1.6% during mid-day trading on Monday. The company traded as low as $8.62 and last traded at $8.65. 43,082,614 shares changed hands during trading, an increase of 104% from the average daily volume of 21,120,494 shares. The stock had previously closed at $8.79.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on AGNC. Wells Fargo & Company cut their price target on AGNC Investment from $12.00 to $11.00 and set an “overweight” rating for the company in a research note on Thursday, July 23rd. Weiss Ratings raised AGNC Investment from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, August 17th. Compass Point cut shares of AGNC Investment from a “buy” rating to a “neutral” rating and set a $11.50 price objective for the company. in a research note on Friday, July 17th. Keefe, Bruyette & Woods decreased their price target on AGNC Investment from $12.00 to $11.00 and set a “market perform” rating on the stock in a research note on Wednesday, July 22nd. Finally, Piper Sandler upped their price objective on shares of AGNC Investment from $11.50 to $12.00 and gave the stock an “overweight” rating in a research note on Thursday, July 2nd. Four equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and an average target price of $11.11.

AGNC Investment Price Performance

The firm has a 50 day moving average price of $10.34 and a 200-day moving average price of $10.48. The firm has a market cap of $10.31 billion, a price-to-earnings ratio of 4.58 and a beta of 1.36.

AGNC Investment (NASDAQ:AGNC) last announced its quarterly earnings data on Monday, July 20th. The real estate investment trust reported $0.40 EPS for the quarter, topping analysts’ consensus estimates of $0.38 by $0.02. AGNC Investment had a return on equity of 17.96% and a net margin of 57.94%.The firm had revenue of $305.00 million during the quarter, compared to analyst estimates of $1.06 billion. During the same period last year, the company earned ($0.17) earnings per share. On average, sell-side analysts expect that AGNC Investment Corp. will post 1.6 EPS for the current fiscal year.

AGNC Investment Dividend Announcement

The business also recently announced a monthly dividend, which will be paid on Friday, October 9th. Shareholders of record on Wednesday, September 30th will be issued a dividend of $0.12 per share. The ex-dividend date is Wednesday, September 30th. This represents a $1.44 dividend on an annualized basis and a yield of 16.6%. AGNC Investment’s dividend payout ratio (DPR) is 75.79%.

Insiders Place Their Bets

In related news, EVP Bernice Bell sold 5,000 shares of the business’s stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $11.00, for a total transaction of $55,000.00. Following the completion of the transaction, the executive vice president owned 406,947 shares in the company, valued at approximately $4,476,417. The trade was a 1.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.40% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Handelsbanken Fonder AB lifted its holdings in AGNC Investment by 0.3% during the 2nd quarter. Handelsbanken Fonder AB now owns 353,300 shares of the real estate investment trust’s stock worth $3,851,000 after buying an additional 900 shares during the period. Davidson Trust Co. raised its position in shares of AGNC Investment by 4.4% during the first quarter. Davidson Trust Co. now owns 23,341 shares of the real estate investment trust’s stock worth $234,000 after acquiring an additional 985 shares during the last quarter. Wedmont Private Capital lifted its stake in shares of AGNC Investment by 1.4% in the second quarter. Wedmont Private Capital now owns 73,805 shares of the real estate investment trust’s stock worth $821,000 after acquiring an additional 988 shares during the period. Spinnaker Investment Group LLC lifted its stake in shares of AGNC Investment by 1.4% in the second quarter. Spinnaker Investment Group LLC now owns 75,595 shares of the real estate investment trust’s stock worth $824,000 after acquiring an additional 1,014 shares during the period. Finally, NWF Advisory Services Inc. boosted its holdings in AGNC Investment by 8.2% in the second quarter. NWF Advisory Services Inc. now owns 13,475 shares of the real estate investment trust’s stock valued at $147,000 after acquiring an additional 1,026 shares during the last quarter. 38.28% of the stock is owned by institutional investors and hedge funds.

About AGNC Investment

AGNC Investment Corp. is an internally managed real estate investment trust that invests primarily in agency residential mortgage-backed securities. Its portfolio generally includes mortgage pass-through securities and collateralized mortgage obligations issued or guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae. Because these securities carry government or government-sponsored enterprise backing, the company’s investment strategy focuses on interest-rate and prepayment risks rather than traditional residential credit risk.

AGNC finances its investments largely through repurchase agreements and uses interest-rate swaps, swaptions, and other hedging instruments to manage exposure to changing interest rates and funding costs.