Capstead Mortgage Corp. (CMO) Upgraded to “Hold” at Zacks Investment Research
Capstead Mortgage Corp. (NYSE:CMO) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a research note issued on Tuesday.
According to Zacks, “Capstead Mortgage Corporation, formed in 1985 and based in Dallas, Texas, is a self-managed real estate investment trust for federal income tax purposes. Capstead’s core investment strategy is managing a leveraged portfolio of residential mortgage pass-through securities consisting almost exclusively of ARM securities issued and guaranteed by government-sponsored entities, either Fannie Mae or Freddie Mac, or by an agency of the federal government, Ginnie Mae. Agency-guaranteed residential mortgage securities carry an implied AAA credit rating with limited, if any, credit risk. “
Separately, Keefe, Bruyette & Woods set a $9.50 price target on Capstead Mortgage Corp. and gave the company a “market perform” rating in a report on Monday, August 1st. Four investment analysts have rated the stock with a hold rating and two have issued a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $10.75.
Capstead Mortgage Corp. (NYSE:CMO) traded down 2.36% during mid-day trading on Tuesday, hitting $9.11. The company’s stock had a trading volume of 1,017,206 shares. The firm’s 50-day moving average is $9.89 and its 200-day moving average is $9.85. The company has a market cap of $874.45 million, a P/E ratio of 10.59 and a beta of 0.36. Capstead Mortgage Corp. has a 12-month low of $7.48 and a 12-month high of $10.54.
Capstead Mortgage Corp. (NYSE:CMO) last announced its quarterly earnings results on Wednesday, July 27th. The real estate investment trust reported $0.19 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.23 by $0.04. Capstead Mortgage Corp. had a net margin of 44.67% and a return on equity of 8.90%. During the same period in the previous year, the business posted $0.22 earnings per share. Analysts predict that Capstead Mortgage Corp. will post $0.83 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Thursday, October 20th. Shareholders of record on Friday, September 30th will be issued a dividend of $0.23 per share. The ex-dividend date is Wednesday, September 28th. This represents a $0.92 dividend on an annualized basis and a yield of 10.10%. Capstead Mortgage Corp.’s dividend payout ratio is currently 104.55%.
A number of hedge funds have recently bought and sold shares of the company. JPMorgan Chase & Co. raised its stake in Capstead Mortgage Corp. by 31.3% in the first quarter. JPMorgan Chase & Co. now owns 5,581,514 shares of the real estate investment trust’s stock worth $55,201,000 after buying an additional 1,331,138 shares in the last quarter. Renaissance Technologies LLC raised its stake in Capstead Mortgage Corp. by 91.9% in the first quarter. Renaissance Technologies LLC now owns 2,219,000 shares of the real estate investment trust’s stock worth $21,946,000 after buying an additional 1,062,500 shares in the last quarter. BlackRock Fund Advisors raised its stake in Capstead Mortgage Corp. by 13.8% in the second quarter. BlackRock Fund Advisors now owns 8,465,680 shares of the real estate investment trust’s stock worth $82,117,000 after buying an additional 1,024,113 shares in the last quarter. Norges Bank bought a new stake in Capstead Mortgage Corp. during the fourth quarter worth $8,244,000. Finally, Rothschild Asset Management Inc. bought a new stake in Capstead Mortgage Corp. during the second quarter worth $7,091,000. Institutional investors own 66.38% of the company’s stock.
Capstead Mortgage Corp. Company Profile
Capstead Mortgage Corporation is a self-managed real estate investment trust (REIT). The Company invests in a leveraged portfolio of residential mortgage pass-through securities consisting exclusively of short-duration adjustable-rate mortgage (ARM) securities issued and guaranteed by government-sponsored enterprises (GSEs), either the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac) (together, the GSEs), or by an agency of the federal Government, the Government National Mortgage Association (Ginnie Mae).
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