We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is AGNC Investment (AGNC) Down 2.6% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for AGNC Investment (AGNC - Free Report) . Shares have lost about 2.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is AGNC Investment due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
AGNC Investment Tops on Q4 Net Spread and Dollar Roll
AGNC Investment’s fourth-quarter 2023 net spread and dollar roll income per common share (excluding estimated "catch-up" premium amortization benefit) of 60 cents beat the Zacks Consensus Estimate of 49 cents. However, the bottom line declined from 65 cents in the prior-quarter.
Adjusted net interest and dollar roll income (excluding estimated "catch-up" premium amortization benefits) of $497 million moved down from $499 million in the quarter-ago period.
The company reported fourth-quarter comprehensive income per common share of $1. It incurred a loss of $1.02 in the prior quarter.
Inside the Headlines
Net interest income was negative $26 million compared with negative $53 million in the prior quarter. The Zacks Consensus Estimate was pegged at $351 million.
AGNC Investment's average asset yield on its portfolio was 4.55% in the fourth quarter, up from 4.26% in the prior-quarter.
The combined weighted average cost of funds, inclusive of interest rate swap, was 1.39% compared with 1.17% in the prior quarter.
The average net interest spread (excluding estimated "catch-up" premium amortization benefits) was 3.08%, up from 3.03% in the earlier quarter.
As of Dec 31, 2023, AGNC’s average tangible net book value "at risk" leverage ratio was 7.4 compared with 7.5 in the prior quarter.
In the fourth quarter, the company's investment portfolio bore an average actual constant prepayment rate of 6.2%, down from 7.1% in the previous quarter.
As of Dec 31, 2023, tangible net book value per common share (BVPS) was $8.70, up from $8.08 as of Sep 30, 2023.
The economic return on tangible common equity was 12.1%. In the prior quarter the metric was negative 10.1%. This included a dividend per share of 36 cents and an increase of 62 cents in tangible net BVPS.
As of Dec 31, 2023, the company’s investment portfolio aggregated $60.2 billion. This included $53.8 billion of Agency mortgage-backed securities, $5.4 million of net to-be-announced mortgage position and $1.1 billion of credit risk transfer and non-Agency securities.
As of Dec 31, 2023, AGNC Investment’s cash and cash equivalents totaled $518 million, up from $493 billion as of Sep 30, 2023.
Dividend Update
In the fourth quarter, AGNC Investment announced a dividend of 12 cents per share each for October, November and December. Notably, management declared $12.9 billion in common stock dividends or $47.20 per common share since its initial public offering in May 2008 through fourth-quarter 2023.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 14.13% due to these changes.
VGM Scores
Currently, AGNC Investment has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, AGNC Investment has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is AGNC Investment (AGNC) Down 2.6% Since Last Earnings Report?
It has been about a month since the last earnings report for AGNC Investment (AGNC - Free Report) . Shares have lost about 2.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is AGNC Investment due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
AGNC Investment Tops on Q4 Net Spread and Dollar Roll
AGNC Investment’s fourth-quarter 2023 net spread and dollar roll income per common share (excluding estimated "catch-up" premium amortization benefit) of 60 cents beat the Zacks Consensus Estimate of 49 cents. However, the bottom line declined from 65 cents in the prior-quarter.
Adjusted net interest and dollar roll income (excluding estimated "catch-up" premium amortization benefits) of $497 million moved down from $499 million in the quarter-ago period.
The company reported fourth-quarter comprehensive income per common share of $1. It incurred a loss of $1.02 in the prior quarter.
Inside the Headlines
Net interest income was negative $26 million compared with negative $53 million in the prior quarter. The Zacks Consensus Estimate was pegged at $351 million.
AGNC Investment's average asset yield on its portfolio was 4.55% in the fourth quarter, up from 4.26% in the prior-quarter.
The combined weighted average cost of funds, inclusive of interest rate swap, was 1.39% compared with 1.17% in the prior quarter.
The average net interest spread (excluding estimated "catch-up" premium amortization benefits) was 3.08%, up from 3.03% in the earlier quarter.
As of Dec 31, 2023, AGNC’s average tangible net book value "at risk" leverage ratio was 7.4 compared with 7.5 in the prior quarter.
In the fourth quarter, the company's investment portfolio bore an average actual constant prepayment rate of 6.2%, down from 7.1% in the previous quarter.
As of Dec 31, 2023, tangible net book value per common share (BVPS) was $8.70, up from $8.08 as of Sep 30, 2023.
The economic return on tangible common equity was 12.1%. In the prior quarter the metric was negative 10.1%. This included a dividend per share of 36 cents and an increase of 62 cents in tangible net BVPS.
As of Dec 31, 2023, the company’s investment portfolio aggregated $60.2 billion. This included $53.8 billion of Agency mortgage-backed securities, $5.4 million of net to-be-announced mortgage position and $1.1 billion of credit risk transfer and non-Agency securities.
As of Dec 31, 2023, AGNC Investment’s cash and cash equivalents totaled $518 million, up from $493 billion as of Sep 30, 2023.
Dividend Update
In the fourth quarter, AGNC Investment announced a dividend of 12 cents per share each for October, November and December. Notably, management declared $12.9 billion in common stock dividends or $47.20 per common share since its initial public offering in May 2008 through fourth-quarter 2023.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 14.13% due to these changes.
VGM Scores
Currently, AGNC Investment has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, AGNC Investment has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.