Value Hunters: Look To AGNC Investment Corp. (AGNC)


Fidelity Management & Research Co.. recently announced the acquisition of new stake in AGNC Investment Corp. (NASDAQ:AGNC). The institutional investor has increased its shareholding in the Real Estate company by 255.91% to 14.01 million shares with purchase of 10.08 million shares. This fresh investment now brings its stake to 2.52% valued currently at $190.59 million. In addition, Sculptor Capital LP raised its holdings by 7.7 million to 7.7 million shares. And Geode Capital Management LLC has lifted its position by 0.01% or 635.0 shares – to 6.83 million shares.

With over 5.38 million AGNC Investment Corp. (AGNC) shares trading Tuesday and a closing price of $14.17 on the day, the dollar volume was approximately $76.19 million. The shares have shown a positive weekly performance of 2.09% and its price on 08/25/20 lost nearly -0.56%. Currently, there are 560.30M common shares owned by the public and among those 553.67M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 13 analysts who have offered their price forecasts for AGNC have a consensus price objective of $14.92. The analysts have set the share’s price value over the next 12 months at a high of $17.00 and a low of $14.00 should the stock experience a downside. Incidentally, analysts’ outlook for the AGNC Investment Corp. stock is 2.00 for the next 12 months. The average price target is 5.03% above its last price level and an upside to the estimated low will see the stock lose -1.21% over that period. But an upside of 16.65% will see the stock hit the forecast high price target while mean target price for the stock is $15.00.

Insiders at the company have transacted a total of 23 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 18 of these insider trades were purchases, accounting for 392,471 shares. Insider sales of the common stock occurred on 5 occasions, with total insider shares sold totaling 50,638 shares.

The top 3 mutual fund holders in AGNC Investment Corp. are Vanguard Total Stock Market Index, Vanguard Mid Cap Index Fund, and American Balanced Fund. Vanguard Total Stock Market Index owns 15.9 million shares of the company’s stock, all valued at over $216.24 million. The company sold 12591.0 shares recently to bring their total holdings to about 2.86% of the shares outstanding. Vanguard Mid Cap Index Fund sold -0.12 million shares to see its total holdings shrink to 13.71 million shares valued at over $186.5 million and representing 2.47% of the shares outstanding. American Balanced Fund sold -0.72 million shares to bring its total holdings to over 12.85 million shares at a value of $174.76 million. American Balanced Fund now owns shares totaling to 2.31% of the shares outstanding.

Shares of AGNC Investment Corp. (NASDAQ: AGNC) opened at $14.25, unchanged from a prior closing price of $14.25. However, the script later closed the day at $14.17, down -0.56%. The company’s stock has a 5-day price change of 2.09% and 5.04% over the past three months. AGNC shares are trading -19.85% year to date (YTD), with the 12-month market performance down to -8.87% lower. It has a 12-month low price of $6.25 and touched a high of $19.65 over the same period. Currently, 5.38 million shares have been traded, compared to an average intraday trading volume of 8.99 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 2.84%, 5.83%, and -4.98% respectively.

Institutional ownership of AGNC Investment Corp. (NASDAQ: AGNC) shares accounts for 62.80% of the company’s 560.30M shares outstanding. Mutual fund holders own 30.64%, while other institutional holders and individual stakeholders account for 31.91% and 0.68% respectively.

It has a market capitalization of $7.83B and a beta (3y monthly) value of 0.92. The earnings-per-share (ttm) stands at -$1.70. The company has a debt-to-equity ratio at 7.89. Price movements for the stock have been influenced by the stock’s volatility, which stands at 1.96% over the week and 1.90% over the month.

Analysts forecast that AGNC Investment Corp. (AGNC) will achieve an EPS of $0.56 for the current quarter, $0.56 for the next quarter and $2.19 for 2021. The lowest estimate earnings-per-share for the quarter is $0.4 while analysts give the company a high EPS estimate of $0.67. Comparatively, EPS for the current quarter was $0.59 a year ago. Earnings per share for the fiscal year are expected to increase by 450.60%, and -2.32% over the next financial year. EPS should shrink at an annualized rate of -0.05% over the next five years, compared to 29.20% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 13 brokerage firm advisors rate AGNC Investment Corp. (AGNC) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 10 Wall Street analysts polled rate the stock as a buy, while 3 of the 13 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the AGNC, a number of firms have released research notes about the stock. Deutsche Bank stated their Buy rating for the stock in a research note on July 24, 2020, with the firm’s price target at. Argus coverage for the AGNC Investment Corp. (AGNC) stock in a research note released on June 24, 2020 offered a Buy rating with a price target of $15. Maxim Group was of a view on May 04, 2020 that the stock is Buy, while RBC Capital Mkts gave the stock Outperform rating on April 29, 2020, issuing a price target of $18- $15. BofA/Merrill on their part issued Buy rating on April 28, 2020.


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