In a report released yesterday, Donald Fandetti from Wells Fargo maintained a Buy rating on AGNC Investment, with a price target of $10.00.
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Donald Fandetti has given his Buy rating due to a combination of factors that highlight AGNC Investment’s potential. The relatively wide agency MBS spreads create a favorable environment for investing, and AGNC’s shares present an attractive risk/reward profile, particularly with a dividend yield of 15%. Despite a slight miss in Q2 earnings per share, largely due to a higher share count and lower swap income, the company has shown resilience by capitalizing on wider spreads to raise capital.
Additionally, the outlook for agency MBS remains positive with expectations of regulatory relief for banks, which could enhance demand. Although the tangible book value per share saw a decline, it has shown signs of recovery in July. The firm’s strategic moves, including issuing equity and managing its portfolio and leverage, support the Buy rating, with a target price set at $10, based on a tangible book value multiple.
In another report released yesterday, KBW also maintained a Buy rating on the stock with a $10.00 price target.
Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AGNC in relation to earlier this year.