Housing
Annaly Downgrade Highlights Mortgage REIT Sector Risks Ahead (NLY, MORT)
Published:
Last Updated:
Annaly Capital Management Inc. (NYSE: NLY) is holding up rather well considering an analyst downgrade this morning. The research team at Stern Agee lowered the Annaly rating down to Underperform from an already-cautious rating of Neutral. The Mortgage-REIT closed at $16.34 on Wednesday and opened at $16.24 on Thursday and it has a 52-week trading range of $14.05 to $18.79.
Today’s move follows a big gap up in the stock on Wednesday because shares closed at $16.11 on Tuesday despite another dividend cut. The new dividend is only at $0.55 per quarter, down from $0.57, $0.60, and $0.65 in the sequential quarters before. Now the dividend yield is “only” 13.5% on a static basis.
What makes this call so interesting is that Annaly is often considered the best or one of the best in the field of REITs which are actually buyers of mortgage-backed securities on a leveraged basis. A rise in long-term interest rates could have a very adverse impact on the portfolio of its mortgages.
The Market Vectors Mortgage REIT (NYSE: MORT) ETF is down only 0.3% at $25.17 on this volume.
JON C. OGG
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
