Annaly Capital Management (NYSE:NLY) Shares Down 1.7% Following Analyst Downgrade

Annaly Capital Management Inc (NYSE:NLY)’s stock price was down 1.7% during trading on Wednesday after JonesTrading lowered their price target on the stock from $25.00 to $21.00. JonesTrading currently has a buy rating on the stock. Annaly Capital Management traded as low as $17.98 and last traded at $17.9850. Approximately 16,035,601 shares traded hands during mid-day trading, an increase of 92% from the average session volume of 8,367,094 shares. The stock had previously closed at $18.29.

Several other research analysts have also issued reports on the stock. Wells Fargo & Company cut their target price on shares of Annaly Capital Management from $25.00 to $24.00 and set an “overweight” rating for the company in a research report on Thursday, July 23rd. Weiss Ratings restated a “hold (c)” rating on shares of Annaly Capital Management in a research report on Tuesday, October 6th. JPMorgan Chase & Co. dropped their price target on Annaly Capital Management from $26.00 to $24.00 and set an “overweight” rating for the company in a research note on Friday, July 24th. Piper Sandler dropped their price target on Annaly Capital Management from $25.00 to $21.50 and set an “overweight” rating for the company in a research note on Friday, October 9th. Finally, BTIG Research set a $21.00 price objective on Annaly Capital Management and gave the stock a “buy” rating in a report on Tuesday, October 6th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Annaly Capital Management has an average rating of “Moderate Buy” and an average target price of $23.17.

Annaly Capital Management News Roundup

Here are the key news stories impacting Annaly Capital Management this week:

• Positive Sentiment: Underlying earnings exceeded expectations: Third-quarter earnings available for distribution were $0.80 per share, above the $0.77 consensus estimate and up from $0.73 a year earlier. Net interest income also increased to $543.6 million from $488.2 million in the prior quarter. Annaly Q3 earnings beat
• Positive Sentiment: Dividend remained substantial: Annaly declared a quarterly common-stock dividend of $0.75 per share, below its $0.80 distribution earnings but supporting the stock’s income appeal. Annaly third-quarter results
• Positive Sentiment: Onslow Bay continued to expand: The business generated $5.8 billion in quarterly funding volume, providing a potential growth driver and diversification benefit for long-term investors. Annaly long-term investor takeaways
• Neutral Sentiment: Results were mixed: Revenue was reported at approximately $1.93 billion, while analysts had expected $637.4 million, but the headline figures were affected by investment and derivative valuation changes. The earnings beat therefore provides a better view of operating performance than GAAP net income alone.
• Negative Sentiment: Large GAAP loss and book-value decline are weighing on sentiment: Annaly reported a third-quarter net loss of about $1.00 billion, or $1.36 per share. Total other loss was $1.63 billion, including a $4.72 billion investment loss partly offset by a $3.07 billion derivatives gain. Book value per share was $17.86, below the stock’s recent trading level. Annaly third-quarter net loss
• Negative Sentiment: Leverage increased: GAAP leverage rose to 8.0 times from 7.4 times in the prior quarter, increasing sensitivity to interest rates, funding costs and changes in mortgage-asset valuations.

Hedge Funds Weigh In On Annaly Capital Management

Several institutional investors and hedge funds have recently bought and sold shares of NLY. HUB Investment Partners LLC raised its stake in Annaly Capital Management by 3.3% during the second quarter. HUB Investment Partners LLC now owns 14,668 shares of the real estate investment trust’s stock valued at $328,000 after buying an additional 462 shares during the last quarter. Quadcap Wealth Management LLC boosted its holdings in Annaly Capital Management by 2.3% in the first quarter. Quadcap Wealth Management LLC now owns 21,889 shares of the real estate investment trust’s stock worth $463,000 after acquiring an additional 495 shares in the last quarter. Fourth Dimension Wealth LLC boosted its holdings in Annaly Capital Management by 30.3% in the second quarter. Fourth Dimension Wealth LLC now owns 2,150 shares of the real estate investment trust’s stock worth $48,000 after acquiring an additional 500 shares in the last quarter. Strs Ohio grew its stake in shares of Annaly Capital Management by 3.3% in the first quarter. Strs Ohio now owns 16,920 shares of the real estate investment trust’s stock worth $358,000 after acquiring an additional 548 shares during the last quarter. Finally, Sigma Planning Corp grew its stake in shares of Annaly Capital Management by 2.4% in the second quarter. Sigma Planning Corp now owns 25,979 shares of the real estate investment trust’s stock worth $581,000 after acquiring an additional 606 shares during the last quarter. 51.56% of the stock is currently owned by institutional investors.

Annaly Capital Management Price Performance

The business has a 50 day moving average price of $21.11 and a 200 day moving average price of $21.88. The stock has a market capitalization of $13.56 billion, a PE ratio of 4.51, a PEG ratio of 1.39 and a beta of 1.21.

Annaly Capital Management (NYSE:NLY) last posted its quarterly earnings results on Tuesday, October 20th. The real estate investment trust reported $0.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.77 by $0.03. The firm had revenue of $1.93 billion during the quarter, compared to analyst estimates of $637.41 million. Annaly Capital Management had a return on equity of 16.00% and a net margin of 43.66%. On average, equities analysts expect that Annaly Capital Management Inc will post 3.09 earnings per share for the current year.

Annaly Capital Management Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Wednesday, September 30th will be paid a dividend of $0.75 per share. This represents a $3.00 dividend on an annualized basis and a yield of 16.7%. The ex-dividend date is Wednesday, September 30th. Annaly Capital Management’s dividend payout ratio (DPR) is currently 75.19%.

Annaly Capital Management Company Profile

Annaly Capital Management, Inc is a diversified capital manager and mortgage real estate investment trust listed on the New York Stock Exchange under the symbol NLY. The company primarily invests in and manages residential mortgage-related assets, seeking to generate income through interest-rate spreads, financing, and portfolio management.

Annaly’s investment activities have historically focused on agency mortgage-backed securities, which are backed by federally sponsored entities or government agencies.