Annaly Capital Management (NYSE:NLY) Shares Down 1.7% Following Analyst Downgrade

Annaly Capital Management Inc (NYSE:NLY) dropped 1.7% during mid-day trading on Wednesday after JonesTrading lowered their price target on the stock from $25.00 to $21.00. JonesTrading currently has a buy rating on the stock. Annaly Capital Management traded as low as $17.98 and last traded at $17.9850. 16,035,601 shares traded hands during mid-day trading, an increase of 92% from the average daily volume of 8,367,094 shares. The stock had previously closed at $18.29.

Several other brokerages also recently weighed in on NLY. Zacks Research downgraded shares of Annaly Capital Management from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 31st. JPMorgan Chase & Co. lowered their price objective on Annaly Capital Management from $26.00 to $24.00 and set an “overweight” rating on the stock in a research report on Friday, July 24th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Annaly Capital Management in a research report on Tuesday, October 6th. BTIG Research set a $21.00 target price on Annaly Capital Management and gave the company a “buy” rating in a research note on Tuesday, October 6th. Finally, Wells Fargo & Company reduced their target price on Annaly Capital Management from $25.00 to $24.00 and set an “overweight” rating for the company in a report on Thursday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat, Annaly Capital Management currently has a consensus rating of “Moderate Buy” and a consensus price target of $23.17.

More Annaly Capital Management News

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

• Positive Sentiment: Underlying earnings exceeded expectations: Third-quarter earnings available for distribution were $0.80 per share, above the $0.77 consensus estimate and up from $0.73 a year earlier. Net interest income also increased to $543.6 million from $488.2 million in the prior quarter. Annaly Q3 earnings beat
• Positive Sentiment: Dividend remained substantial: Annaly declared a quarterly common-stock dividend of $0.75 per share, below its $0.80 distribution earnings but supporting the stock’s income appeal. Annaly third-quarter results
• Positive Sentiment: Onslow Bay continued to expand: The business generated $5.8 billion in quarterly funding volume, providing a potential growth driver and diversification benefit for long-term investors. Annaly long-term investor takeaways
• Neutral Sentiment: Results were mixed: Revenue was reported at approximately $1.93 billion, while analysts had expected $637.4 million, but the headline figures were affected by investment and derivative valuation changes. The earnings beat therefore provides a better view of operating performance than GAAP net income alone.
• Negative Sentiment: Large GAAP loss and book-value decline are weighing on sentiment: Annaly reported a third-quarter net loss of about $1.00 billion, or $1.36 per share. Total other loss was $1.63 billion, including a $4.72 billion investment loss partly offset by a $3.07 billion derivatives gain. Book value per share was $17.86, below the stock’s recent trading level. Annaly third-quarter net loss
• Negative Sentiment: Leverage increased: GAAP leverage rose to 8.0 times from 7.4 times in the prior quarter, increasing sensitivity to interest rates, funding costs and changes in mortgage-asset valuations.

Institutional Investors Weigh In On Annaly Capital Management

Hedge funds have recently modified their holdings of the business. Ellis Investment Partners LLC lifted its position in Annaly Capital Management by 6.1% during the third quarter. Ellis Investment Partners LLC now owns 15,914 shares of the real estate investment trust’s stock valued at $301,000 after purchasing an additional 921 shares in the last quarter. Nisa Investment Advisors LLC grew its holdings in Annaly Capital Management by 3.4% during the third quarter. Nisa Investment Advisors LLC now owns 219,371 shares of the real estate investment trust’s stock valued at $4,308,000 after purchasing an additional 7,122 shares during the period. Robeco Institutional Asset Management B.V. grew its holdings in Annaly Capital Management by 0.4% during the third quarter. Robeco Institutional Asset Management B.V. now owns 194,055 shares of the real estate investment trust’s stock valued at $3,666,000 after purchasing an additional 829 shares during the period. Sumitomo Mitsui DS Asset Management Company Ltd increased its position in Annaly Capital Management by 1.0% in the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 78,437 shares of the real estate investment trust’s stock worth $1,482,000 after buying an additional 782 shares in the last quarter. Finally, NFSG Corp increased its position in Annaly Capital Management by 6.7% in the third quarter. NFSG Corp now owns 127,107 shares of the real estate investment trust’s stock worth $2,401,000 after buying an additional 8,036 shares in the last quarter. Institutional investors own 51.56% of the company’s stock.

Annaly Capital Management Price Performance

The business has a 50-day simple moving average of $21.11 and a 200 day simple moving average of $21.88. The firm has a market cap of $13.56 billion, a PE ratio of 4.51, a PEG ratio of 1.39 and a beta of 1.21.

Annaly Capital Management (NYSE:NLY) last posted its quarterly earnings data on Tuesday, October 20th. The real estate investment trust reported $0.80 earnings per share for the quarter, beating analysts’ consensus estimates of $0.77 by $0.03. Annaly Capital Management had a return on equity of 16.00% and a net margin of 43.66%. The firm had revenue of $1.93 billion for the quarter, compared to analysts’ expectations of $637.41 million. On average, equities analysts forecast that Annaly Capital Management Inc will post 3.09 earnings per share for the current fiscal year.

Annaly Capital Management Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Wednesday, September 30th will be issued a $0.75 dividend. This represents a $3.00 annualized dividend and a yield of 16.7%. The ex-dividend date of this dividend is Wednesday, September 30th. Annaly Capital Management’s dividend payout ratio is currently 75.19%.

About Annaly Capital Management

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.