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AGNC Investment (AGNC) Q1 Net Spread and Dollar Roll Beat
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AGNC Investment Corp. (AGNC - Free Report) reported first-quarter 2021 net spread and dollar roll income (excluding estimated catch-up premium amortization costs) of 76 cents per share, beating the Zacks Consensus Estimate of 64 cents. Also, the reported figure improved from the first-quarter 2020 figure of 57 cents.
Adjusted net interest and dollar roll income (excluding catch-up premium amortization) was $457 million, surpassing the Zacks Consensus Estimate of $412 million. The reported figure also improved from the year-ago figure of $357 million.
Net interest income of $528 million significantly surged from the prior-year quarter’s $65 million.
The company reported first-quarter comprehensive income per common share of $1.33 compared with the prior quarter’s $1.16.
Also, as of Mar 31, 2021, its tangible net book value per share (“BVPS”) was $17.72, up 6% from $16.71 as of Dec 31, 2020. Also, it compares favorably with BVPS of $13.62 as of Mar 31, 2020.
The economic loss on tangible common equity for the company in the reported quarter was 8.2%. This included a dividend per share of 36 cents and an increase of $1.01 in tangible net BVPS.
Inside the Headlines
As of Mar 31, 2021, the company’s investment portfolio aggregated $90.3 billion. This included $63.6 billion of Agency mortgage backed securities, $24.8 billion of to-be-announced (TBA) securities and $1.9 billion of credit risk transfer and non-Agency securities.
Inclusive of its net TBA position and net payable/ (receivable) for unsettled securities, AGNC Investment’s tangible net book value "at risk" leverage ratio was 7.7X as of Mar 31, 2021, compared with 8.5X in the prior quarter.
For the March-end quarter, the company's investment portfolio bore a weighted average actual constant prepayment rate of 24.6%, down from 27.6% witnessed in fourth-quarter 2020.
Excluding net TBA position, AGNC Investment's average asset yield on its portfolio, excluding the net TBA position, was 3.78 % in the first quarter, up from 1.64% recorded in the previous quarter.
For the March-end quarter, the combined average cost of funds, inclusive of interest rate swap costs, was 0.02%, down from 0.05% witnessed in the previous quarter.
Average net interest spread (excluding catch-up premium amortization) was 2 %, down from 2.02% reported in the prior quarter.
Also, as of Mar 31, 2021, AGNC Investment’s cash and cash equivalents totaled $963 million, down from $1.01 billion as of Dec 31, 2020.
Dividend Update and Share Repurchase
In the first quarter, AGNC Investment announced a dividend of 12 cents per share each for January, February and March. Notably, the company announced $10.6 billion in common stock dividends or $43.24 per common share since its initial public offering in May 2008 through first-quarter 2021.
In the first quarter, it repurchased 13.4 million shares or $215 million of its common stock for an average price of $16.05 per share.
AGNC Investment Corp. Price, Consensus and EPS Surprise
We now look forward to the earnings releases of other REITs like Digital Realty Trust, Inc. (DLR - Free Report) , Cousins Properties (CUZ - Free Report) and CubeSmart (CUBE - Free Report) . All three companies are slated to report first-quarter earnings on Apr 29.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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AGNC Investment (AGNC) Q1 Net Spread and Dollar Roll Beat
AGNC Investment Corp. (AGNC - Free Report) reported first-quarter 2021 net spread and dollar roll income (excluding estimated catch-up premium amortization costs) of 76 cents per share, beating the Zacks Consensus Estimate of 64 cents. Also, the reported figure improved from the first-quarter 2020 figure of 57 cents.
Adjusted net interest and dollar roll income (excluding catch-up premium amortization) was $457 million, surpassing the Zacks Consensus Estimate of $412 million. The reported figure also improved from the year-ago figure of $357 million.
Net interest income of $528 million significantly surged from the prior-year quarter’s $65 million.
The company reported first-quarter comprehensive income per common share of $1.33 compared with the prior quarter’s $1.16.
Also, as of Mar 31, 2021, its tangible net book value per share (“BVPS”) was $17.72, up 6% from $16.71 as of Dec 31, 2020. Also, it compares favorably with BVPS of $13.62 as of Mar 31, 2020.
The economic loss on tangible common equity for the company in the reported quarter was 8.2%. This included a dividend per share of 36 cents and an increase of $1.01 in tangible net BVPS.
Inside the Headlines
As of Mar 31, 2021, the company’s investment portfolio aggregated $90.3 billion. This included $63.6 billion of Agency mortgage backed securities, $24.8 billion of to-be-announced (TBA) securities and $1.9 billion of credit risk transfer and non-Agency securities.
Inclusive of its net TBA position and net payable/ (receivable) for unsettled securities, AGNC Investment’s tangible net book value "at risk" leverage ratio was 7.7X as of Mar 31, 2021, compared with 8.5X in the prior quarter.
For the March-end quarter, the company's investment portfolio bore a weighted average actual constant prepayment rate of 24.6%, down from 27.6% witnessed in fourth-quarter 2020.
Excluding net TBA position, AGNC Investment's average asset yield on its portfolio, excluding the net TBA position, was 3.78 % in the first quarter, up from 1.64% recorded in the previous quarter.
For the March-end quarter, the combined average cost of funds, inclusive of interest rate swap costs, was 0.02%, down from 0.05% witnessed in the previous quarter.
Average net interest spread (excluding catch-up premium amortization) was 2 %, down from 2.02% reported in the prior quarter.
Also, as of Mar 31, 2021, AGNC Investment’s cash and cash equivalents totaled $963 million, down from $1.01 billion as of Dec 31, 2020.
Dividend Update and Share Repurchase
In the first quarter, AGNC Investment announced a dividend of 12 cents per share each for January, February and March. Notably, the company announced $10.6 billion in common stock dividends or $43.24 per common share since its initial public offering in May 2008 through first-quarter 2021.
In the first quarter, it repurchased 13.4 million shares or $215 million of its common stock for an average price of $16.05 per share.
AGNC Investment Corp. Price, Consensus and EPS Surprise
AGNC Investment Corp. price-consensus-eps-surprise-chart | AGNC Investment Corp. Quote
AGNC Investment currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We now look forward to the earnings releases of other REITs like Digital Realty Trust, Inc. (DLR - Free Report) , Cousins Properties (CUZ - Free Report) and CubeSmart (CUBE - Free Report) . All three companies are slated to report first-quarter earnings on Apr 29.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%.
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
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