American Capital Agency Corp. (AGNC - Free Report) , the mortgage real estate investment trust (“mREIT”) has inked a deal to acquire its external manager American Capital Mortgage Management, LLC from American Capital Asset Management, LLC, a wholly-owned company of American Capital, Ltd. . Upon completion of the deal, American Capital Agency will be managed internally as a residential mREIT. The acquisition of its external manager is likely to create value for the shareholders of the American Capital Agency in the long run.
Subject to the fulfillment of certain customary closing conditions, this acquisition is expected to close in the third-quarter of 2016. American Capital Agency is expected to pay a total consideration price of $562 million related this deal.
Notably, in first-quarter 2016, American Capital Agency paid $27 million (or $108 million annually) to American Capital as management fees. Upon the completion of this deal, American Capital Agency will not have to pay this amount.
American Capital Agency focuses on leveraged investments in agency MBS. Last month, the company reported first-quarter 2016 net spread and dollar roll income of 52 cents per share (excluding estimated “catch-up” premium amortization benefit) that missed the Zacks Consensus Estimate of 57 cents. The reported figure also came lower than 54 cents earned in the prior quarter.
Presently, both American Capital Agency and American Capital carry a Zacks Rank #3 (Hold).
Some better-ranked stocks in the mREIT space include Capstead Mortgage Corp. and Two Harbors Investment Corp. (TWO - Free Report) . Both these stocks hold a Zacks Rank #2 (Buy).
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
American Capital Agency Corp. (AGNC - Free Report) , the mortgage real estate investment trust (“mREIT”) has inked a deal to acquire its external manager American Capital Mortgage Management, LLC from American Capital Asset Management, LLC, a wholly-owned company of American Capital, Ltd. . Upon completion of the deal, American Capital Agency will be managed internally as a residential mREIT. The acquisition of its external manager is likely to create value for the shareholders of the American Capital Agency in the long run.
Subject to the fulfillment of certain customary closing conditions, this acquisition is expected to close in the third-quarter of 2016. American Capital Agency is expected to pay a total consideration price of $562 million related this deal.
Notably, in first-quarter 2016, American Capital Agency paid $27 million (or $108 million annually) to American Capital as management fees. Upon the completion of this deal, American Capital Agency will not have to pay this amount.
American Capital Agency focuses on leveraged investments in agency MBS. Last month, the company reported first-quarter 2016 net spread and dollar roll income of 52 cents per share (excluding estimated “catch-up” premium amortization benefit) that missed the Zacks Consensus Estimate of 57 cents. The reported figure also came lower than 54 cents earned in the prior quarter.
Presently, both American Capital Agency and American Capital carry a Zacks Rank #3 (Hold).
Some better-ranked stocks in the mREIT space include Capstead Mortgage Corp. and Two Harbors Investment Corp. (TWO - Free Report) . Both these stocks hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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