AGNC Investment (NASDAQ:AGNC) Stock Price Up 0.2% - What's Next?

AGNC Investment Corp. (NASDAQ:AGNC) saw its stock price increase by 0.2% during midday trading on Friday. The stock reached a high of $10.39, finishing at the same price after about 1,234,505 shares changed hands. This trading volume was notably lower than the average daily volume of 12,937,135 shares, reflecting a 90% decline. Prior to this session, the stock had closed at $10.37.

Analysts Set New Price Targets

Recent actions from several equities research analysts have influenced opinions on AGNC's stock. JMP Securities maintained a 'market perform' rating on August 28. In contrast, StockNews.com downgraded AGNC from a 'hold' to a 'sell' rating shortly after. Early in July, JPMorgan Chase raised their price target for AGNC from $9.50 to $10.00, giving the stock an 'overweight' rating. Meanwhile, Maxim Group shifted its rating from 'buy' to 'hold' a few days later. Lastly, on September 20, Wells Fargo upgraded AGNC from 'equal weight' to 'overweight,' also increasing their price target from $10.00 to $12.00. Overall, one analyst rates the stock as a 'sell,' four as 'hold,' and seven as 'buy.' The consensus rating stands at 'Moderate Buy' with an average price target of $10.33.

AGNC Investment Stock Performance

The financial metrics of AGNC are noteworthy. It has a quick ratio and current ratio of 0.27, alongside a low debt-to-equity ratio of 0.01. The stock's fifty-day average price is $10.24, while its 200-day average is $9.89. With a market capitalization of $8.06 billion, its Price/Earnings (P/E) ratio sits at 28.08, and its beta is 1.47.

On July 22, AGNC announced its quarterly earnings, reporting earnings per share (EPS) of $0.53, slightly below the expected $0.54. Revenue for the quarter was reported at $695 million, exceeding the estimated $643.29 million. The company demonstrated a net margin of 16.15% and a return on equity of 26.21%. Revenue also increased by 52.1% year-over-year. Analysts predict that AGNC Investment will achieve an EPS of 2.11 for the current year.

AGNC Investment Announces Dividend

In addition to its performance metrics, AGNC has declared a dividend set to be paid on November 12. Shareholders on record by October 31 will receive a dividend of $0.12 per share, with the ex-dividend date coinciding with October 31. The company's dividend payout ratio currently stands at 389.20%.

Insider Buying and Selling at AGNC Investment

On a different note, there was an insider transaction recently when CFO Bernice Bell sold 5,000 shares on August 8, at an average price of $10.07, totaling $50,350. Despite the sale, the CFO retains 298,182 shares valued approximately at $3 million. Corporate insiders collectively own about 0.52% of AGNC's stock.

Institutional Trading of AGNC Investment

Additionally, several hedge funds have adjusted their holdings in AGNC. CIBC Asset Management increased its stake by 5.4% in the second quarter, now owning 19,712 shares. Avantax Advisory Services raised their holdings by 6.7% in the first quarter, bringing their total to 16,847 shares. Paragon Capital Management boosted its position by 3.6% in the third quarter, and Highlander Capital Management increased theirs by 8.1% in the first quarter. Oak Thistle LLC also grew its stake by 4.9% in the second quarter. In aggregate, institutional investors hold approximately 38.28% of AGNC shares.

About AGNC Investment

AGNC Investment Corp., formerly known as American Capital Agency Corp., operates as a real estate investment trust (REIT). The firm primarily invests in agency residential mortgage-backed securities through leverage. Their portfolio includes mortgage pass-through securities and collateralized mortgage obligations backed by government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.

AGNC, stock, investment