Bank of America Securities analyst Derek Hewett has reiterated their neutral stance on AGNC stock, giving a Hold rating yesterday.
Derek Hewett has given his Hold rating due to a combination of factors influencing AGNC Investment’s financial outlook. The company’s core earnings per share for the first quarter exceeded expectations, indicating strong performance. However, the tangible book value per share has declined due to interest rate volatility, which poses a risk to the company’s financial stability.
Despite the challenges, AGNC’s investment outlook appears promising with a return on equity for new investments surpassing the breakeven point, suggesting dividend stability. The company has also raised significant capital, enhancing its liquidity position. Nevertheless, the balance between risks and rewards remains delicate, leading Derek Hewett to maintain a Hold rating as the stock’s potential is counterbalanced by near-term uncertainties.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $9.00 price target.
Based on the recent corporate insider activity of 34 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.