AGNC Investment Corp. Reports Strong Q4 2025 Earnings with 34.8% Total Stock Return
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: seekingalpha
- Strong Economic Returns: AGNC achieved an 11.6% economic return in Q4 2025, driving a full-year economic return of 22.7%, with a total stock return of 34.8%, nearly double that of the S&P 500, highlighting the company's robust market performance.
- Comprehensive Income: The comprehensive income for Q4 was reported at $0.89 per common share, with an economic return on tangible common equity of 11.6%, including $0.36 in dividends and a $0.60 increase in tangible net book value per share, reflecting positive impacts from reduced interest rate volatility and tighter mortgage spreads.
- Decreased Leverage: AGNC's leverage decreased to 7.2x tangible equity by the end of Q4, down from 7.6x in Q3, indicating a more cautious approach to risk management in response to market fluctuations.
- Portfolio Optimization: The company increased the allocation to interest rate swaps to 70% of its hedge mix, enhancing its resilience against interest rate volatility, with expectations that lower future funding costs will provide a moderate tailwind to net spread and dollar roll income.
Analyst Views on AGNC
Wall Street analysts forecast AGNC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AGNC is 10.44 USD with a low forecast of 10.00 USD and a high forecast of 11.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
6 Buy
4 Hold
0 Sell
Moderate Buy
Current: 11.800
Low
10.00
Averages
10.44
High
11.00
Current: 11.800
Low
10.00
Averages
10.44
High
11.00
About AGNC
AGNC Investment Corp. is an internally managed real estate investment trust (REIT). The Company provides private capital to the United States housing market, enhancing liquidity in the residential real estate mortgage markets and, in turn, facilitating home ownership in the United States. The Company invests primarily in Agency residential mortgage-backed securities (Agency RMBS) on a leveraged basis. These investments consist of residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by a United States Government-sponsored enterprise, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac, and together with Fannie Mae, the GSEs), or by a United States Government agency, such as the Government National Mortgage Association (Ginnie Mae). It may also invest in other assets related to the housing, mortgage or real estate markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
