Insider Buying: Dynex Capital (NYSE:DX) CEO Acquires 12,000 Shares of Company Stock

by · The Markets Daily

Dynex Capital, Inc. (NYSE:DX – Get Free Report) CEO Smriti Popenoe purchased 12,000 shares of the business’s stock in a transaction dated Tuesday, October 20th. The shares were bought at an average price of $13.05 per share, with a total value of $156,600.00. Following the purchase, the chief executive officer directly owned 541,098 shares of the company’s stock, valued at approximately $7,061,328.90. The trade was a 2.27% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink.

Dynex Capital Stock Performance

NYSE:DX traded up $0.37 during midday trading on Tuesday, reaching $10.93. The stock had a trading volume of 8,187,915 shares, compared to its average volume of 6,048,099. The firm has a fifty day simple moving average of $12.11 and a two-hundred day simple moving average of $12.74. Dynex Capital, Inc. has a 12-month low of $10.31 and a 12-month high of $14.93. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 0.01. The stock has a market cap of $2.70 billion, a P/E ratio of 4.16 and a beta of 0.98.

Dynex Capital (NYSE:DX – Get Free Report) last announced its quarterly earnings data on Monday, October 19th. The real estate investment trust reported $0.38 EPS for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.01). The firm had revenue of $101.56 million for the quarter, compared to analysts’ expectations of $113.48 million. Dynex Capital had a return on equity of 8.85% and a net margin of 49.18%.

Dynex Capital Dividend Announcement

The company also recently declared a monthly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Thursday, October 22nd will be paid a dividend of $0.17 per share. This represents a $2.04 dividend on an annualized basis and a dividend yield of 18.7%. The ex-dividend date is Thursday, October 22nd. Dynex Capital’s payout ratio is 77.57%.

Wall Street Analyst Weigh In

A number of brokerages recently commented on DX. JonesTrading reduced their price objective on shares of Dynex Capital from $14.75 to $12.50 and set a “buy” rating for the company in a research report on Monday. BTIG Research set a $12.00 target price on Dynex Capital and gave the stock a “buy” rating in a research report on Tuesday, October 6th. Weiss Ratings cut Dynex Capital from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday. Finally, Keefe, Bruyette & Woods reissued an “outperform” rating on shares of Dynex Capital in a research note on Tuesday. Three equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $13.38.

Check Out Our Latest Report on DX

Dynex Capital News Summary

Here are the key news stories impacting Dynex Capital this week:

  • Positive Sentiment: Management said stable funding and limited refinancing activity are allowing Dynex to earn attractive spreads without relying on near-term interest-rate cuts. The company also believes currently wide Agency MBS spreads offer an opportunity to invest at favorable valuations. Dynex Capital Bets on Rich MBS Spreads After Painful Quarter
  • Positive Sentiment: Dynex raised $384 million of capital and expanded its Agency MBS portfolio by $3.2 billion, lifting the total investment portfolio approximately 3% to $28.3 billion. Net interest income increased to $101.6 million from $93.8 million in the prior quarter, and the company declared a $0.51-per-share dividend. Dynex Capital Posts Third-Quarter Net Loss
  • Neutral Sentiment: JonesTrading reduced its price target to $12.50 from $14.75 but maintained a Buy rating, implying potential upside from recent trading levels while acknowledging lower near-term expectations.
  • Negative Sentiment: Dynex reported a third-quarter net loss of $335.5 million, or $1.34 per share, compared with a profit-oriented investor focus on portfolio values. Comprehensive loss was $374.8 million, and total economic return was negative $1.48 per share, or negative 11.5% of beginning book value.
  • Negative Sentiment: Book value per common share fell sharply to $10.91 from $12.90 in the prior quarter as wider Agency MBS spreads reduced the fair value of the investment portfolio. Leverage, including to-be-announced securities, increased to 9.0 times shareholders’ equity from 8.1 times, adding risk if spreads remain unfavorable. Dynex Capital Third-Quarter Results
  • Negative Sentiment: Adjusted earnings also modestly missed expectations: EPS was $0.38 versus a $0.39 consensus estimate, while revenue of $101.56 million came in below the $113.48 million forecast. Dynex Capital Earnings Report

Hedge Funds Weigh In On Dynex Capital

Institutional investors and hedge funds have recently made changes to their positions in the stock. Integrity Alliance LLC. lifted its stake in shares of Dynex Capital by 6.9% during the second quarter. Integrity Alliance LLC. now owns 16,683 shares of the real estate investment trust’s stock worth $219,000 after purchasing an additional 1,081 shares in the last quarter. IMG Wealth Management Inc. boosted its position in shares of Dynex Capital by 55.9% in the first quarter. IMG Wealth Management Inc. now owns 3,410 shares of the real estate investment trust’s stock worth $44,000 after buying an additional 1,222 shares during the period. Pictet Asset Management Holding SA grew its stake in shares of Dynex Capital by 10.4% in the second quarter. Pictet Asset Management Holding SA now owns 23,872 shares of the real estate investment trust’s stock valued at $313,000 after buying an additional 2,245 shares in the last quarter. Versant Capital Management Inc grew its stake in shares of Dynex Capital by 891.8% in the second quarter. Versant Capital Management Inc now owns 2,896 shares of the real estate investment trust’s stock valued at $38,000 after buying an additional 2,604 shares in the last quarter. Finally, Allworth Financial LP grew its stake in shares of Dynex Capital by 5.1% in the second quarter. Allworth Financial LP now owns 55,923 shares of the real estate investment trust’s stock valued at $733,000 after buying an additional 2,689 shares in the last quarter. 38.34% of the stock is owned by institutional investors and hedge funds.

About Dynex Capital

(Get Free Report)

Dynex Capital, Inc (NYSE: DX) is an internally managed real estate investment trust that invests in mortgage-related assets. The company primarily focuses on agency mortgage-backed securities, including securities backed by the U.S. government or government-sponsored enterprises, as well as selected non-agency residential and commercial mortgage-backed securities.

Dynex Capital uses financing and other investment strategies to generate income from its portfolio of mortgage assets. Its investments are tied primarily to the U.S.

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