Thes shares of American Capital Agency Corp. (AGNC) fell today after the real estate investment trust said it agreed to sell 8 million shares of its common stock to Citigroup and Deutsche Bank.
The Bethesda, Md.- based company announced the sale yesterday and said the proceeds will be used to acquire agency securities and for general corporate purposes. The company said it will grant underwriters to buy up to an additional 1.2 million shares to cover overallotments.
, On Monday November 29, 2010, 8:05 am EST
We have recently changed our long-term recommendation for American Capital Agency Corp. (NasdaqGS: AGNC), a leading real estate investment trust (REIT) that focuses on investments in mortgage pass-through securities and collateralized mortgage obligations (CMOs), from ‘Neutral’ to ‘Outperform’ as we anticipate it to perform well above the broader market. The stock presently has a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating.
In the last 30 days, fiscal 2010 earnings estimates of American Capital have been increased by 8 of the 13 analysts covering the stock, while only one has lowered the same. For fiscal 2011, earnings estimates were revised upward by 8 of the 12 analysts covering the stock, while 3 had revised it downward. This indicates a clear positive directional movement for the fiscal earnings.
The magnitude of the earnings estimates has also increased by 38 cents for fiscal 2010 and 18 cents for fiscal 2011 to $5.88 and $4.62, respectively, in the last 30 days. This indicates that the analysts are bullish about the long-term performance of the company.
American Capital Agency Corp. (AGNC) is a real estate investment trust (REIT). AGNC earns income primarily from investing in residential mortgage pass-through securities and collateralized mortgage obligations. These investments consist of securities, for which the principal and interest payments are guaranteed by United States Government-sponsored entities, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) or by a United States Government agency, such as the Government National Mortgage Association (Ginnie Mae). The Company is externally managed by American Capital Agency Management, LLC, a subsidiary of a wholly owned portfolio company of American Capital, Ltd.. - read on
Company website:
http://www.agnc.com/
REITS seem to be loved or hated on Bloomberg currently. Not American but if I was purchasing a home might be tempted to try and get and interest only mortgage and invest the capital sum owed in a basket of REITS
We would like to draw investors attention the the REIT - Chimera Investment Corporation (CIM) had a large issue of shares during the last 2 months - the share price fell to $3.86 but soon recovered.
Current price $4.11 - Change:
0.01 (0.24%)
