Home Investment AGNC Investment Corp. Receives Moderate Buy Rating and Sees Insider Activity

AGNC Investment Corp. Receives Moderate Buy Rating and Sees Insider Activity

by Janessa Lee

AGNC Investment Corp. (NASDAQ:AGNC), a real estate investment trust, has been given an average rating of “Moderate Buy” by six research firms currently covering the company, according to Bloomberg Ratings. Among the analysts, one has given a hold recommendation, while five have assigned a buy recommendation to AGNC. The average 12-month price target among brokers who have released reports on the stock in the past year is $10.19.

Recent news surrounding AGNC Investment includes an executive vice president, Bernice Bell, selling 5,000 shares of the company’s stock on Thursday, August 31st. The shares were sold at an average price of $9.93 per share, resulting in a total transaction value of $49,650. Following this transaction, Bell now holds 258,947 shares of AGNC with a value of approximately $2,571,343.71. This information was disclosed in a document filed with the Securities and Exchange Commission (SEC), available on the SEC website.

On Thursday, July 27th, director Morris A. Davis purchased 4,772 shares of AGNC’s stock at an average cost of $10.48 per share. The total transaction value amounted to $50,010.56. Following the completion of this purchase, Davis now possesses 55,060 shares valued at $577,028.80.

It is worth noting that Bell also sold another 5,000 shares of the company’s stock on Thursday August 31st at an average price of $9.93 per share for a total transaction value of $49,650.

Additionally notable is that corporate insiders currently own 0.52% of AGNC’s stock.

In terms of financial performance for the quarter ended July 25th this year (Q3 FY2023), AGNC Investment reported earnings per share (EPS) amounting to $0.67 which surpassed analysts’ consensus estimate of $0.58 by $0.09. The company achieved a net margin of 1.96% and a return on equity (ROE) of 29.59%. AGNC Investment generated revenue of $457 million for the quarter, exceeding the consensus estimate of $342.01 million. In the same quarter last year, the company earned $0.83 earnings per share.

Equities research analysts predict that AGNC Investment will post EPS of 2.4 for the current fiscal year.

Overall, AGNC Investment Corp. continues to attract investor attention with five out of six research firms recommending it as a buy and an average price target projection of $10.19 per share for the next 12 months. The recent insider activity involving stock sales and purchases may also pique investor curiosity regarding AGNC’s future prospects in the real estate investment market.

AGNC Investment Garners Attention from Analysts and Institutional Investors

On September 15, 2023, AGNC Investment opened at $10.09 on the NASDAQ stock exchange. With a market cap of $6.12 billion, this real estate investment trust (REIT) has recently garnered attention from analysts and institutional investors alike.

Several reports have been issued by analysts regarding AGNC Investment. StockNews.com, for instance, assumed coverage on the company and gave it a “hold” rating on Thursday, August 17th. Royal Bank of Canada also reissued an “outperform” rating with a price target of $11.00 on Wednesday, July 26th. In contrast, JPMorgan Chase & Co. decreased their price target from $11.00 to $10.50 in a research note on Monday, July 24th.

Institutional investors have been actively making changes to their positions in AGNC Investment in recent months. Portside Wealth Group LLC purchased a new stake in the second quarter worth approximately $119,000. Similarly, Virginia Retirement Systems ET AL bought a new stake worth about $52,644,000 during the same quarter.

One notable institutional investor who saw an increase in its holdings was Osaic Holdings Inc., which experienced a significant uplift of 39% in its AGNC Investment shares during the second quarter alone. Their total holdings now amount to 805,146 shares valued at $8,155,000.

Another investor who entered the scene is Coppell Advisory Solutions LLC with a new position valued at around $29,000 during the second quarter. Additionally, Nuveen Asset Management LLC grew its stake by 7% to reach ownership of 1,931,860 shares valued at $19,570,000.

It is important to note that institutional investors and hedge funds currently own around 38.86% of AGNC Investment’s stock.

AGNC Investment’s financial indicators are also noteworthy. The company has a debt-to-equity ratio of 0.01 and a quick ratio as well as a current ratio of 0.22, indicating healthy liquidity levels. Furthermore, it maintains a 50-day moving average price of $9.94 and a 200-day moving average price of $9.88.

With regards to its trading performance, AGNC Investment operates with a PE ratio of -38.81 and a beta of 1.23, showcasing its volatility in relation to the broader market.

Over the past year, AGNC Investment’s shares have fluctuated between a low of $7.30 and a high of $12.25, providing investors with opportunities for both profit and risk.

In conclusion, AGNC Investment has recently attracted attention from analysts and institutional investors due to its performance within the real estate investment sector. While some analysts have issued favorable ratings and price targets, others have revised their expectations downwards. Institutional investors have also made notable changes to their positions in recent months, further adding to the intrigue surrounding AGNC Investment.

As always, potential investors should conduct thorough research and exercise caution when considering any investment decisions in the volatile market environment.

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