Annaly Capital Management (NYSE:NLY) Sets New 1-Year Low – Here’s What Happened

by · The Markets Daily

Annaly Capital Management Inc (NYSE:NLY – Get Free Report)’s stock price hit a new 52-week low on Monday. The company traded as low as $17.75 and last traded at $17.8950, with a volume of 1,766,040 shares traded. The stock had previously closed at $18.23.

Annaly Capital Management News Roundup

Here are the key news stories impacting Annaly Capital Management this week:

  • Positive Sentiment: Recurring earnings exceeded expectations: Annaly reported third-quarter earnings available for distribution of $0.80 per share, above the $0.77 analyst consensus and up from $0.73 a year earlier. Annaly Capital Management Surpasses Q3 Earnings Estimates
  • Positive Sentiment: Net interest income improved: Net interest income rose to $543.6 million from $488.2 million in the prior quarter. The company also maintained its quarterly common dividend at $0.75 per share, supporting the stock’s income appeal. Annaly Reports $1.00 Billion Third-Quarter Net Loss
  • Positive Sentiment: Before the results, analysts anticipated that higher net interest income and servicing fees would benefit Annaly, as subdued mortgage refinancing activity supported its mortgage-servicing portfolio. Annaly Q3 Earnings on the Deck
  • Neutral Sentiment: GAAP results differed sharply from distributable earnings: The mortgage REIT posted a $1.00 billion net loss, or $1.36 per share, largely because of investment losses and other valuation effects. These losses were partly offset by gains on derivatives and may not fully reflect recurring operating performance.
  • Negative Sentiment: Investment losses and higher leverage remain concerns: Total other loss was $1.63 billion, including a $4.72 billion loss on investments and other. GAAP leverage increased to 8.0x from 7.4x in the prior quarter, while book value was $17.86 per share, potentially limiting investor enthusiasm. Annaly Reports Third-Quarter Net Loss

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on NLY. BTIG Research set a $21.00 target price on Annaly Capital Management and gave the stock a “buy” rating in a report on Tuesday, October 6th. Piper Sandler decreased their price target on shares of Annaly Capital Management from $25.00 to $21.50 and set an “overweight” rating for the company in a research note on Friday, October 9th. Weiss Ratings restated a “hold (c)” rating on shares of Annaly Capital Management in a research note on Tuesday, October 6th. Wells Fargo & Company lowered their price objective on shares of Annaly Capital Management from $25.00 to $24.00 and set an “overweight” rating on the stock in a report on Thursday, July 23rd. Finally, Zacks Research downgraded shares of Annaly Capital Management from a “strong-buy” rating to a “hold” rating in a report on Monday, August 31st. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $23.61.

Check Out Our Latest Analysis on Annaly Capital Management

Annaly Capital Management Trading Up 3.3%

The firm has a market cap of $13.80 billion, a P/E ratio of 4.59, a PEG ratio of 1.39 and a beta of 1.21. The company’s 50-day moving average is $21.11 and its two-hundred day moving average is $21.88.

Annaly Capital Management (NYSE:NLY – Get Free Report) last issued its quarterly earnings data on Tuesday, October 20th. The real estate investment trust reported $0.80 EPS for the quarter, topping analysts’ consensus estimates of $0.77 by $0.03. The firm had revenue of $1.93 billion during the quarter, compared to analyst estimates of $637.41 million. Annaly Capital Management had a return on equity of 16.00% and a net margin of 43.66%. Research analysts anticipate that Annaly Capital Management Inc will post 3.09 EPS for the current fiscal year.

Annaly Capital Management Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Wednesday, September 30th will be given a dividend of $0.75 per share. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $3.00 annualized dividend and a dividend yield of 16.4%. Annaly Capital Management’s payout ratio is presently 75.19%.

Institutional Investors Weigh In On Annaly Capital Management

Institutional investors and hedge funds have recently bought and sold shares of the stock. BlackRock Inc. lifted its stake in shares of Annaly Capital Management by 6.7% during the 2nd quarter. BlackRock Inc. now owns 87,219,586 shares of the real estate investment trust’s stock valued at $1,950,230,000 after buying an additional 5,485,296 shares in the last quarter. State Street Corp boosted its holdings in Annaly Capital Management by 4.5% in the 2nd quarter. State Street Corp now owns 29,426,379 shares of the real estate investment trust’s stock worth $679,468,000 after buying an additional 1,272,235 shares during the period. KBC Group NV grew its stake in Annaly Capital Management by 44.2% in the 1st quarter. KBC Group NV now owns 4,976,006 shares of the real estate investment trust’s stock valued at $105,243,000 after buying an additional 1,525,251 shares in the last quarter. Bank of New York Mellon Corp grew its stake in Annaly Capital Management by 5.3% in the 1st quarter. Bank of New York Mellon Corp now owns 4,962,690 shares of the real estate investment trust’s stock valued at $104,961,000 after buying an additional 248,335 shares in the last quarter. Finally, Amundi grew its stake in Annaly Capital Management by 35.2% in the 1st quarter. Amundi now owns 3,361,211 shares of the real estate investment trust’s stock valued at $71,090,000 after buying an additional 875,331 shares in the last quarter. 51.56% of the stock is owned by hedge funds and other institutional investors.

About Annaly Capital Management

(Get Free Report)

Annaly Capital Management, Inc is a diversified capital manager and mortgage real estate investment trust listed on the New York Stock Exchange under the symbol NLY. The company primarily invests in and manages residential mortgage-related assets, seeking to generate income through interest-rate spreads, financing, and portfolio management.

Annaly’s investment activities have historically focused on agency mortgage-backed securities, which are backed by federally sponsored entities or government agencies.

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