AGNC Investment Q4 Earnings Miss Consensus Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Earnings Shortfall: AGNC Investment reported a non-GAAP EPS of $0.35 for Q4, missing the consensus estimate of $0.37, indicating ongoing profitability challenges despite an improving backdrop, which could dampen investor confidence.
- Dividend Appeal: Despite the earnings miss, AGNC's 13.4% dividend is viewed as a recession hedge, attracting income-seeking investors and potentially strengthening its shareholder base in uncertain market conditions.
- Increased Market Competition: AGNC's dividend attractiveness has diminished compared to Rithm Capital, which offers higher yields, prompting investors to reassess their portfolios and potentially impacting AGNC's market share.
- Floating Preferred Stock Opportunity: AGNC's three floating preferred shares offer yields exceeding 9%, providing potential investment opportunities for yield-seeking investors despite overall performance issues, which may attract additional capital inflows.
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: 11.850
Low
10.00
Averages
10.44
High
11.00
Current: 11.850
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.
