The Zacks Investment Research Downgrades American Capital Agency Corp. (AGNC) to Hold

The Zacks Investment Research Downgrades American Capital Agency Corp. (AGNC) to Hold

American Capital Agency Corp. (NASDAQ:AGNC) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.

According to Zacks, “Shares of AGNC Investment outperformed the Zacks categorized REIT-Mortgage Trust industry in the past one month. The company’s efficient cost structure and portfolio repositioning efforts for hedging interest rate uncertainty augur well. Also, adequate financial flexibility and share buybacks are encouraging. The company’s acquisition of its external manager last July has substantially lowered its operating costs. Also, the company came up with a better-than-expected performance in third-quarter 2016. However, volatility in the market and issues regarding global economy are concerns. Moreover, its estimates for 2016 and 2017 net spread and dollar roll income per share have remained unchanged over the past 30 days.”

A number of other brokerages also recently issued reports on AGNC. Vetr raised American Capital Agency Corp. from a “hold” rating to a “buy” rating and set a $19.53 price target for the company in a report on Thursday, October 6th. Compass Point downgraded American Capital Agency Corp. from a “buy” rating to a “neutral” rating and decreased their price target for the stock from $20.00 to $19.00 in a report on Thursday, December 8th. Credit Suisse Group AG downgraded American Capital Agency Corp. from an “outperform” rating to a “neutral” rating and decreased their price target for the stock from $21.00 to $19.50 in a report on Friday, December 2nd. Finally, Bank of America Corp. downgraded American Capital Agency Corp. from a “neutral” rating to an “underperform” rating in a report on Wednesday, December 21st. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating and four have given a buy rating to the company. American Capital Agency Corp. currently has a consensus rating of “Hold” and a consensus price target of $20.65.

Shares of American Capital Agency Corp. (NASDAQ:AGNC) opened at 18.99 on Tuesday. American Capital Agency Corp. has a 52 week low of $16.02 and a 52 week high of $20.43. The stock has a 50 day moving average price of $0.00 and a 200-day moving average price of $0.00.

American Capital Agency Corp. (NASDAQ:AGNC) last announced its quarterly earnings results on Monday, October 24th. The real estate investment trust reported $1.52 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.55 by $0.97. American Capital Agency Corp. had a return on equity of 10.23% and a net margin of 20.87%. During the same quarter in the prior year, the business posted $0.51 earnings per share. On average, equities analysts forecast that American Capital Agency Corp. will post $2.32 earnings per share for the current fiscal year.

The firm also recently disclosed a jan 17 dividend, which will be paid on Wednesday, February 8th. Shareholders of record on Tuesday, January 31st will be issued a $0.18 dividend. The ex-dividend date is Friday, January 27th. American Capital Agency Corp.’s dividend payout ratio is presently 469.57%.

Large investors have recently made changes to their positions in the stock. Artemis Investment Management LLP acquired a new stake in shares of American Capital Agency Corp. during the second quarter worth $45,849,000. BlackRock Fund Advisors raised its stake in shares of American Capital Agency Corp. by 16.0% in the second quarter. BlackRock Fund Advisors now owns 16,466,537 shares of the real estate investment trust’s stock worth $326,367,000 after buying an additional 2,268,419 shares in the last quarter. JPMorgan Chase & Co. raised its stake in shares of American Capital Agency Corp. by 49.5% in the third quarter. JPMorgan Chase & Co. now owns 4,844,226 shares of the real estate investment trust’s stock worth $94,657,000 after buying an additional 1,604,808 shares in the last quarter. Artisan Partners Limited Partnership raised its stake in shares of American Capital Agency Corp. by 25.0% in the second quarter. Artisan Partners Limited Partnership now owns 7,823,809 shares of the real estate investment trust’s stock worth $155,068,000 after buying an additional 1,564,825 shares in the last quarter. Finally, Waddell & Reed Financial Inc. raised its stake in shares of American Capital Agency Corp. by 109.2% in the second quarter. Waddell & Reed Financial Inc. now owns 2,328,400 shares of the real estate investment trust’s stock worth $46,149,000 after buying an additional 1,215,300 shares in the last quarter. 52.69% of the stock is currently owned by institutional investors.

About American Capital Agency Corp.

AGNC Investment Corp., formerly American Capital Agency Corp., is an internally managed real estate investment trust (REIT). The Company primarily invests on a leveraged basis in agency mortgage-backed securities (agency MBS). The Company’s investments consist of residential mortgage pass-through securities and collateralized mortgage obligations (CMOs) for which the principal and interest payments are guaranteed by a government-sponsored enterprise, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), or by the United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) (collectively, GSEs).

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