I downgraded American Capital Agency Corp. (AGNC) a several months ago because it isn’t earning enough money to sustain the quarterly $1.40 dividend payment. You can see in this downgrade from Zacks that the company only earned $1.26 last quarter.
Click here to see all my analysis on AGNC: http://www.myhighdividendstocks.com/category/high-dividend-stocks/american-capital-agency-corp
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Link to original article: http://www.americanbankingnews.com/2011/04/01/american-capital-agency-corp-agnc-downgraded-by-zacks-investment-research-to-neutral/#
American Capital Agency Corp. (AGNC) Downgraded by Zacks Investment Research to “Neutral”
April 1st, 2011 • View Comments • Filed Under • by ABMN Staff
Equities research analysts at Zacks Investment Research downgraded shares of American Capital Agency Corp. (NASDAQ: AGNC) from an “outperform” rating to a “neutral” rating in a research note to investors on Thursday. The analysts currently have a $30.00 price target on the stock.
Analyst Meenu Goyal wrote, “We are changing our long-term recommendation for American Capital from Outperform to Neutral as we anticipate it to perform in line with the broader market. American Capital focuses exclusively on fixed-rate agency securities guaranteed by the U.S. government, which limits its credit risks. American Capital is also among a selected group of companies who have increased its dividend during the economic crisis. The company paid a total of $364.0 million in dividends or $13.26 per share since its initial public offering in May 2008. However, increased volatility and deterioration in the broader residential mortgage and RMBS markets limits the upside potential of the company going forward. “
Separately, analysts at Keefe, Bruyette & Woods, Inc upgraded shares of American Capital Agency Corp. from a “market perform” rating to an “outperform” rating in a research note to investors on Friday, February 11st. Also, analysts at Deutsche Bank (NYSE: DB) raised their price target on shares of American Capital Agency Corp. from $28.00 to $30.00 in a research note to investors on Wednesday, February 9th. They now have a “hold” rating on the stock.
Shares of American Capital Agency Corp. traded down 0.75% during mid-day trading on Friday, hitting $28.9226. American Capital Agency Corp. has a 52 week low of $24.06 and a 52 week high of $30.68. The stock’s 50-day moving average is $29.43 and its 200-day moving average is $28.91. The company has a market cap of $2.654 billion and a price-to-earnings ratio of 3.69.
American Capital Agency Corp. last announced its quarterly results on Tuesday, February 8th. The company reported $1.26 earnings per share (EPS) for the previous quarter, beating the Thomson Reuters consensus estimate of $1.25 EPS by $0.01. During the same quarter in the prior year, the company posted $1.79 earnings per share. The company’s quarterly revenue was up 185.1% on a year-over-year basis. On average, analysts predict that American Capital Agency Corp. will post $0.00 EPS next quarter.
American Capital Agency Corp. (AGNC) is a real estate investment trust (REIT). AGNC earns income primarily from investing in residential mortgage pass-through securities and collateralized mortgage obligations. These investments consist of securities, for which the principal and interest payments are guaranteed by United States Government-sponsored entities, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) or by a United States Government agency, such as the Government National Mortgage Association (Ginnie Mae). The Company is externally managed by American Capital Agency Management, LLC, a subsidiary of a wholly owned portfolio company of American Capital, Ltd.
For more information about Zacks Investment Research’s equity research offerings, visit Zacks.com.
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