Unusual Call Option Trade in AGNC Investment Worth $117.28K

Investing

Published: May 26, 2023 3:12 am

Last Updated: May 26, 2023 1:43 pm

On May 25, 2023 at 13:35:44 ET an unusually large $117.28K block of Call contracts in AGNC Investment (AGNC) was sold, with a strike price of $9.00 / share, expiring in 57 day(s) (on July 21, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 5.44 sigmas above the mean, placing it in the 99.90th percentile of all recent large trades made in AGNC options.

This trade was first picked up on Fintel’s real time Options Flow tool, where unusual option trades are highlighted.

What is the Fund Sentiment?

There are 729 funds or institutions reporting positions in AGNC Investment. This is an increase of 12 owner(s) or 1.67% in the last quarter. Average portfolio weight of all funds dedicated to AGNC is 0.23%, an increase of 26.15%. Total shares owned by institutions decreased in the last three months by 3.14% to 281,924K shares. The put/call ratio of AGNC is 1.48, indicating a bearish outlook.

Analyst Price Forecast Suggests 20.46% Upside

As of May 11, 2023, the average one-year price target for AGNC Investment is 10.68. The forecasts range from a low of 9.60 to a high of $11.81. The average price target represents an increase of 20.46% from its latest reported closing price of 8.87.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for AGNC Investment is 1,536MM. The projected annual non-GAAP EPS is 2.39.

What are Other Shareholders Doing?

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 17,428K shares representing 2.93% ownership of the company. In it’s prior filing, the firm reported owning 15,537K shares, representing an increase of 10.85%. The firm increased its portfolio allocation in AGNC by 27.33% over the last quarter.

NAESX – Vanguard Small-Cap Index Fund Investor Shares holds 14,728K shares representing 2.47% ownership of the company. In it’s prior filing, the firm reported owning 13,272K shares, representing an increase of 9.88%. The firm increased its portfolio allocation in AGNC by 26.28% over the last quarter.

VISVX – Vanguard Small-Cap Value Index Fund Investor Shares holds 10,319K shares representing 1.73% ownership of the company. In it’s prior filing, the firm reported owning 9,068K shares, representing an increase of 12.13%. The firm increased its portfolio allocation in AGNC by 22.87% over the last quarter.

Geode Capital Management holds 8,438K shares representing 1.42% ownership of the company. In it’s prior filing, the firm reported owning 8,151K shares, representing an increase of 3.40%. The firm decreased its portfolio allocation in AGNC by 6.84% over the last quarter.

VEXMX – Vanguard Extended Market Index Fund Investor Shares holds 7,767K shares representing 1.30% ownership of the company. In it’s prior filing, the firm reported owning 7,111K shares, representing an increase of 8.45%. The firm increased its portfolio allocation in AGNC by 29.39% over the last quarter.

AGNC Investment Declares $0.12 Dividend

On May 10, 2023 the company declared a regular monthly dividend of $0.12 per share ($1.44 annualized). Shareholders of record as of May 31, 2023 will receive the payment on June 9, 2023. Previously, the company paid $0.12 per share.

At the current share price of $8.87 / share, the stock’s dividend yield is 16.23%.

Looking back five years and taking a sample every week, the average dividend yield has been 11.36%, the lowest has been 7.71%, and the highest has been 19.55%. The standard deviation of yields is 2.17 (n=237).

The current dividend yield is 2.24 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is -1.24. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company has not increased its dividend in the last three years.

AGNC Investment Background Information
(This description is provided by the company.)

AGNC Investment Corp. is an internally-managed real estate investment trust that invests primarily in residential mortgage-backed securities for which the principal and interest payments are guaranteed by a U.S. Government-sponsored enterprise or a U.S. Government agency.

Key filings for this company: