AGNC Investment (NASDAQ:AGNC) Stock Price Up 0.2% - Still a Buy?

AGNC Investment Corp. (NASDAQ:AGNC) saw its stock price increase by 0.2% during mid-day trading on Friday, reaching a high of $10.39 before closing at the same price. In total, approximately 1,234,505 shares exchanged hands, indicating a significant drop in activity compared to the average daily trading volume of 12,937,135 shares. Prior to this movement, the stock ended the previous trading session at $10.37.

Recent Analyst Ratings

Recent evaluations from various equities research analysts have provided insight into AGNC’s stock performance. JMP Securities maintained a 'market perform' rating for AGNC shares in a report dated August 28. However, StockNews.com downgraded AGNC from a 'hold' rating to a 'sell' rating shortly afterwards. Meanwhile, JPMorgan Chase & Co. raised their price target for AGNC from $9.50 to $10.00 and recommended an 'overweight' rating in a report published on July 16. Maxim Group also downgraded AGNC from 'buy' to 'hold' on July 24. In contrast, Wells Fargo upgraded AGNC from an 'equal weight' rating to an 'overweight' rating and raised their price target from $10.00 to $12.00 in their analysis released on September 20. Among analysts, one has rated AGNC as a 'sell,' whereas four hold a 'hold' rating, and seven have assigned a 'buy' rating. According to MarketBeat, the stock currently has a consensus rating of 'Moderate Buy' with an average price target set at $10.33.

Performance Metrics

AGNC Investment exhibits a quick ratio of 0.27, a current ratio of 0.27, and a debt-to-equity ratio of 0.01. The stock's fifty-day simple moving average is $10.24, whereas the 200-day simple moving average stands at $9.89. With a market capitalization of $8.06 billion, AGNC has a price-to-earnings (P/E) ratio of 28.08 and a beta of 1.47.

Earnings Announcements

On July 22, AGNC announced its quarterly earnings results, reporting earnings per share (EPS) of $0.53, which fell short of the consensus estimate of $0.54 by $0.01. For the quarter, the company's revenue totaled $695 million, outperforming the expectation of $643.29 million. AGNC’s net margin was recorded at 16.15%, and it achieved a return on equity of 26.21%. In comparison to the same quarter last year, their revenue represented a 52.1% increase. Analysts predict that AGNC will post an EPS of 2.11 for the current financial year.

Dividend Declaration

The company has also announced a dividend scheduled for October 24, 2023, which will be paid out on November 12, 2023. Shareholders on record as of October 31 will receive a dividend of $0.12 per share, with the ex-dividend date also falling on October 31. Currently, AGNC Investment has a dividend payout ratio (DPR) of 389.20%.

Insider Trading Activity

In related news, AGNC’s Chief Financial Officer, Bernice Bell, sold 5,000 shares on August 8 at an average price of $10.07, totaling $50,350. This action has slightly reduced her total ownership in the company to 298,182 shares, valued at around $3,002,692.74. Corporate insiders collectively own 0.52% of AGNC Investment's stock.

Institutional Holdings

In recent weeks, various hedge funds have adjusted their stakes in AGNC. CIBC Asset Management increased its holdings by 5.4% during the second quarter, now owning 19,712 shares valued at $188,000 after purchasing an additional 1,012 shares. Avantax Advisory Services raised its position by 6.7% in the first quarter. Paragon Capital Management also increased its holding by 3.6% in the third quarter. Overall, institutional investors currently own about 38.28% of AGNC Investment's stock.

About AGNC Investment Corp.

AGNC Investment Corp., previously known as American Capital Agency Corp., operates as a real estate investment trust (REIT). The firm primarily invests in agency residential mortgage-backed securities using leverage. Its portfolio mainly consists of residential mortgage pass-through securities and collateralized mortgage obligations (CMOs), with principal and interest payments guaranteed by government-sponsored entities like Fannie Mae and Freddie Mac, as well as by U.S. government agencies, including Ginnie Mae.

AGNC, Stock, Investment