Fintel reports that on July 26, 2023, RBC Capital reiterated coverage of AGNC Investment (NASDAQ:AGNC) with a Outperform recommendation.
Analyst Price Forecast Suggests 2.16% Upside
As of July 6, 2023, the average one-year price target for AGNC Investment is 10.63. The forecasts range from a low of 9.60 to a high of $11.81. The average price target represents an increase of 2.16% from its latest reported closing price of 10.40.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for AGNC Investment is 1,536MM, an increase of 1,322.22%. The projected annual non-GAAP EPS is 2.39.
AGNC Investment Declares $0.12 Dividend
On June 12, 2023 the company declared a regular monthly dividend of $0.12 per share ($1.44 annualized). Shareholders of record as of June 30, 2023 received the payment on July 12, 2023. Previously, the company paid $0.12 per share.
At the current share price of $10.40 / share, the stock's dividend yield is 13.85%.
Looking back five years and taking a sample every week, the average dividend yield has been 11.45%, the lowest has been 7.71%, and the highest has been 19.55%. The standard deviation of yields is 2.24 (n=236).
The current dividend yield is 1.07 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 28.59. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company has not increased its dividend in the last three years.
What is the Fund Sentiment?
There are 731 funds or institutions reporting positions in AGNC Investment. This is an increase of 9 owner(s) or 1.25% in the last quarter. Average portfolio weight of all funds dedicated to AGNC is 0.22%, an increase of 6.10%. Total shares owned by institutions decreased in the last three months by 3.16% to 283,217K shares. 
The put/call ratio of AGNC is 1.17, indicating a bearish outlook.
What are Other Shareholders Doing?
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 17,908K shares representing 3.01% ownership of the company. In it's prior filing, the firm reported owning 17,428K shares, representing an increase of 2.68%. The firm decreased its portfolio allocation in AGNC by 7.59% over the last quarter.
NAESX - Vanguard Small-Cap Index Fund Investor Shares holds 15,044K shares representing 2.53% ownership of the company. In it's prior filing, the firm reported owning 14,728K shares, representing an increase of 2.10%. The firm decreased its portfolio allocation in AGNC by 4.52% over the last quarter.
VISVX - Vanguard Small-Cap Value Index Fund Investor Shares holds 10,551K shares representing 1.77% ownership of the company. In it's prior filing, the firm reported owning 10,319K shares, representing an increase of 2.20%. The firm decreased its portfolio allocation in AGNC by 0.82% over the last quarter.
Geode Capital Management holds 8,438K shares representing 1.42% ownership of the company. In it's prior filing, the firm reported owning 8,151K shares, representing an increase of 3.40%. The firm decreased its portfolio allocation in AGNC by 6.84% over the last quarter.
VEXMX - Vanguard Extended Market Index Fund Investor Shares holds 7,940K shares representing 1.33% ownership of the company. In it's prior filing, the firm reported owning 7,767K shares, representing an increase of 2.18%. The firm decreased its portfolio allocation in AGNC by 5.92% over the last quarter.
AGNC Investment Background Information
(This description is provided by the company.)
AGNC Investment Corp. is an internally-managed real estate investment trust that invests primarily in residential mortgage-backed securities for which the principal and interest payments are guaranteed by a U.S. Government-sponsored enterprise or a U.S. Government agency.
Additional reading:
- AGNC INVESTMENT CORP. ANNOUNCES SECOND QUARTER 2023 FINANCIAL RESULTS
- AMENDED AND RESTATED BYLAWS OF AGNC INVESTMENT CORP. (hereinafter called the "Corporation") AS AMENDED AND RESTATED July 20, 2023 ARTICLE I
- centive Compensation Plan Restricted Stock Unit Agreement for S
- orm of AGNC Investment Corp. 2016
- AGNC INVESTMENT CORP. ANNOUNCES FIRST QUARTER 2023 FINANCIAL RESULTS
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
