Annaly Capital Management Inc. (NLY) Downgraded by Zacks Investment Research to Hold
According to Zacks, “Shares of Annaly Capital have underperformed the Zacks categorized REIT Mortgage Trust industry year to date. In addition, over the past seven days, estimates have remained unchanged for the current quarter and full-year 2016. Notably, the company reported third-quarter 2016 core earnings of $0.29 per share, beating the Zacks Consensus Estimate by a penny. However, it came in lower than $0.30 earned in the year-ago quarter. The company’s prudent selection of assets, diversified investment and financing options, exposure to high-quality MBS, expansion of commercial real estate investments and solid financial position keep its growth momentum going. However, competition from several other players, adverse macro-economic conditions and interest rate issues add to the company’s problems.”
NLY has been the topic of a number of other research reports. Deutsche Bank AG raised their price target on Annaly Capital Management from $10.50 to $11.00 and gave the stock a hold rating in a research note on Friday, August 12th. Credit Suisse Group AG restated a hold rating and set a $11.50 price target on shares of Annaly Capital Management in a research note on Friday, September 9th. Bank of America Corp. restated a hold rating and set a $11.00 price target on shares of Annaly Capital Management in a research note on Tuesday, November 8th. JPMorgan Chase & Co. restated a hold rating and set a $11.00 price target on shares of Annaly Capital Management in a research note on Friday, August 5th. Finally, Keefe, Bruyette & Woods raised their price target on Annaly Capital Management from $11.00 to $11.50 and gave the stock a market perform rating in a research note on Monday, August 8th. One analyst has rated the stock with a sell rating, seven have issued a hold rating and two have issued a buy rating to the stock. The stock currently has an average rating of Hold and a consensus target price of $11.06.
Annaly Capital Management (NYSE:NLY) opened at 10.37 on Tuesday. Annaly Capital Management has a 52 week low of $8.25 and a 52 week high of $11.29. The stock’s 50 day moving average price is $10.16 and its 200 day moving average price is $10.62. The firm has a market capitalization of $10.57 billion, a P/E ratio of 55.75 and a beta of 0.23.
Annaly Capital Management (NYSE:NLY) last released its quarterly earnings results on Wednesday, November 2nd. The company reported $0.29 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.29. Annaly Capital Management had a return on equity of 10.78% and a net margin of 15.41%. During the same quarter in the prior year, the firm posted $0.21 EPS. On average, equities analysts expect that Annaly Capital Management will post $1.17 EPS for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Monday, October 31st. Investors of record on Friday, September 30th were issued a dividend of $0.2641 per share. The ex-dividend date was Wednesday, September 28th. This represents a $1.06 annualized dividend and a yield of 10.19%. Annaly Capital Management’s dividend payout ratio is presently 963.64%.
In related news, insider Timothy P. Coffey purchased 30,000 shares of the business’s stock in a transaction dated Wednesday, November 9th. The stock was bought at an average cost of $10.15 per share, with a total value of $304,500.00. Following the completion of the acquisition, the insider now directly owns 38,000 shares in the company, valued at approximately $385,700. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider David L. Finkelstein purchased 100,000 shares of the business’s stock in a transaction dated Friday, November 4th. The stock was bought at an average cost of $10.30 per share, with a total value of $1,030,000.00. Following the completion of the acquisition, the insider now owns 200,000 shares of the company’s stock, valued at $2,060,000. The disclosure for this purchase can be found here. Corporate insiders own 0.47% of the company’s stock.
Several institutional investors have recently added to or reduced their stakes in NLY. Wellington Management Group LLP boosted its position in Annaly Capital Management by 102.0% in the first quarter. Wellington Management Group LLP now owns 1,593,633 shares of the company’s stock worth $16,351,000 after buying an additional 804,535 shares during the period. Babson Capital Management LLC boosted its position in Annaly Capital Management by 206.4% in the first quarter. Babson Capital Management LLC now owns 66,060 shares of the company’s stock worth $678,000 after buying an additional 44,500 shares during the period. Royal Bank of Canada boosted its position in Annaly Capital Management by 13.5% in the first quarter. Royal Bank of Canada now owns 2,067,441 shares of the company’s stock worth $21,212,000 after buying an additional 246,445 shares during the period. First Republic Investment Management Inc. boosted its position in Annaly Capital Management by 41.4% in the first quarter. First Republic Investment Management Inc. now owns 62,858 shares of the company’s stock worth $645,000 after buying an additional 18,391 shares during the period. Finally, Park National Corp OH boosted its position in Annaly Capital Management by 1.2% in the second quarter. Park National Corp OH now owns 20,315 shares of the company’s stock worth $225,000 after buying an additional 250 shares during the period. 54.67% of the stock is owned by institutional investors.
About Annaly Capital Management
Annaly Capital Management, Inc (Annaly) is a mortgage real estate investment trust (REIT). The Company’s principal business objectives are to generate net income for distribution to its stockholders from its investments and capital preservation. Its portfolio also includes residential credit investments, such as credit risk transfer securities and non-agency mortgage-backed securities.
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