Fintel reports that on September 18, 2023, UBS upgraded their outlook for AGNC Investment (NASDAQ:AGNC) from Neutral to Buy.

Analyst Price Forecast Suggests 6.61% Upside

As of August 31, 2023, the average one-year price target for AGNC Investment is 10.74. The forecasts range from a low of 9.60 to a high of $11.81. The average price target represents an increase of 6.61% from its latest reported closing price of 10.07.

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The projected annual revenue for AGNC Investment is 1,536MM, an increase of 1,322.22%. The projected annual non-GAAP EPS is 2.39.

AGNC Investment Declares $0.12 Dividend

On August 9, 2023 the company declared a regular monthly dividend of $0.12 per share ($1.44 annualized). Shareholders of record as of August 31, 2023 received the payment on September 12, 2023. Previously, the company paid $0.12 per share.

At the current share price of $10.07 / share, the stock’s dividend yield is 14.30%.

Looking back five years and taking a sample every week, the average dividend yield has been 11.54%, the lowest has been 7.71%, and the highest has been 19.55%. The standard deviation of yields is 2.29 (n=236).

The current dividend yield is 1.21 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 29.09. 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.

What is the Fund Sentiment?

There are 676 funds or institutions reporting positions in AGNC Investment. This is a decrease of 51 owner(s) or 7.02% in the last quarter. Average portfolio weight of all funds dedicated to AGNC is 0.19%, a decrease of 16.18%. Total shares owned by institutions decreased in the last three months by 7.58% to 260,010K shares. The put/call ratio of AGNC is 1.14, indicating a bearish outlook.

What are Other Shareholders Doing?

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 18,888K shares representing 3.12% ownership of the company. In it’s prior filing, the firm reported owning 17,908K shares, representing an increase of 5.19%. The firm decreased its portfolio allocation in AGNC by 2.21% over the last quarter.

NAESX – Vanguard Small-Cap Index Fund Investor Shares holds 15,379K shares representing 2.54% ownership of the company. In it’s prior filing, the firm reported owning 15,044K shares, representing an increase of 2.18%. The firm decreased its portfolio allocation in AGNC by 2.26% over the last quarter.

VISVX – Vanguard Small-Cap Value Index Fund Investor Shares holds 10,660K shares representing 1.76% ownership of the company. In it’s prior filing, the firm reported owning 10,551K shares, representing an increase of 1.02%. The firm decreased its portfolio allocation in AGNC by 1.70% over the last quarter.

Geode Capital Management holds 8,773K shares representing 1.45% ownership of the company. In it’s prior filing, the firm reported owning 8,438K shares, representing an increase of 3.82%. The firm decreased its portfolio allocation in AGNC by 5.45% over the last quarter.

VEXMX – Vanguard Extended Market Index Fund Investor Shares holds 8,172K shares representing 1.35% ownership of the company. In it’s prior filing, the firm reported owning 7,940K shares, representing an increase of 2.84%. The firm decreased its portfolio allocation in AGNC by 1.33% over the last quarter.

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.

This article originally appeared on Fintel

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