AGNC Investment (NASDAQ:AGNC) Reaches New 1-Year Low – Here’s What Happened
by Mitch Edgeman · The Markets DailyAGNC Investment Corp. (NASDAQ:AGNC – Get Free Report) shares reached a new 52-week low during trading on Tuesday. The stock traded as low as $8.62 and last traded at $8.65, with a volume of 43212449 shares traded. The stock had previously closed at $8.79.
More AGNC Investment News
Here are the key news stories impacting AGNC Investment this week:
- Positive Sentiment: Monthly dividend maintained: AGNC declared a $0.12-per-share common-stock dividend for October, payable November 10 to shareholders of record October 30. The annualized $1.44 payout represents a high yield at the current share price and may support income-oriented demand. AGNC Investment Corp. Declares Monthly Common Stock Dividend
- Positive Sentiment: Potential undervaluation: An analysis argues AGNC could be approximately 35% undervalued based on its historical equity returns. The company has generated about a 48.1% total return over the past three years, suggesting some investors may view the recent weakness as an opportunity if returns remain sustainable. AGNC Stock Could Be 35% Undervalued
- Neutral Sentiment: Income-focused appeal: AGNC is being highlighted in retirement and Roth-account strategies because of its large dividend. However, these discussions are portfolio-oriented rather than new company developments and do not resolve the stock’s underlying earnings and book-value risks. Roth Portfolio Dividend Strategy
- Negative Sentiment: Dividend sustainability concerns: Commentary notes that AGNC has held its monthly dividend at $0.12 for five years, but leverage and interest-rate positioning recently produced a negative economic return. Investors will likely focus on the next earnings report, particularly whether earnings and book-value performance adequately cover the payout. The Real Question Behind AGNC’s Monthly Dividend
- Negative Sentiment: Rising Treasury yields remain a headwind: The 10-year Treasury yield reached a 24-year high in the cited analysis, a move that has historically pressured AGNC’s share price. Higher rates can reduce the value of mortgage assets and increase volatility in the mortgage REIT’s book value. 10-Year Treasury Yield and AGNC
Wall Street Analysts Forecast Growth
AGNC has been the topic of a number of recent research reports. Weiss Ratings upgraded AGNC Investment from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, August 17th. Piper Sandler raised their price objective on AGNC Investment from $11.50 to $12.00 and gave the company an “overweight” rating in a research note on Thursday, July 2nd. Compass Point cut AGNC Investment from a “buy” rating to a “neutral” rating and set a $11.50 target price for the company. in a report on Friday, July 17th. JPMorgan Chase & Co. reissued a “neutral” rating and set a $11.50 target price (up from $11.00) on shares of AGNC Investment in a research report on Friday, July 17th. Finally, Wells Fargo & Company decreased their price target on AGNC Investment from $12.00 to $11.00 and set an “overweight” rating on the stock in a report on Thursday, July 23rd. Four analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $11.11.
Get Our Latest Analysis on AGNC
AGNC Investment Price Performance
The company has a 50-day simple moving average of $10.29 and a 200-day simple moving average of $10.47. The firm has a market cap of $10.03 billion, a PE ratio of 4.45 and a beta of 1.36.
AGNC Investment (NASDAQ:AGNC – Get Free Report) last issued its quarterly earnings results on Monday, July 20th. The real estate investment trust reported $0.40 earnings per share for the quarter, topping the consensus estimate 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 for the quarter, compared to the consensus estimate of $1.06 billion. During the same period in the prior year, the business posted ($0.17) earnings per share. As a group, equities research analysts predict that AGNC Investment Corp. will post 1.6 earnings per share for the current year.
AGNC Investment Announces Dividend
The firm also recently disclosed 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 17.0%. The ex-dividend date of this dividend is Friday, October 30th. AGNC Investment’s dividend payout ratio is 75.79%.
Insiders Place Their Bets
In other news, EVP Bernice Bell sold 5,000 shares of AGNC Investment stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $11.00, for a total transaction of $55,000.00. Following the completion of the sale, the executive vice president directly owned 406,947 shares in the company, valued at approximately $4,476,417. This trade represents a 1.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.40% of the stock is currently owned by insiders.
Institutional Trading of AGNC Investment
Large investors have recently made changes to their positions in the stock. Handelsbanken Fonder AB lifted its stake in shares of 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 purchasing an additional 900 shares during the last quarter. Davidson Trust Co. grew its stake in AGNC Investment by 4.4% in the first quarter. Davidson Trust Co. now owns 23,341 shares of the real estate investment trust’s stock valued at $234,000 after purchasing an additional 985 shares during the last quarter. Wedmont Private Capital grew its stake in 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 valued at $821,000 after purchasing an additional 988 shares during the last quarter. Spinnaker Investment Group LLC grew its stake in 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 valued at $824,000 after purchasing an additional 1,014 shares during the last quarter. Finally, NWF Advisory Services Inc. raised 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 worth $147,000 after purchasing an additional 1,026 shares in the last quarter. 38.28% of the stock is owned by hedge funds and other institutional investors.
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.