Annaly Capital Management (NYSE:NLY) Hits New 52-Week High on Better-Than-Expected Earnings

Shares of Annaly Capital Management Inc (NYSE:NLY) reached a new 52-week high during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $24.52 and last traded at $24.4060, with a volume of 1045787 shares trading hands. The stock had previously closed at $24.36.

The real estate investment trust reported $0.74 earnings per share for the quarter, beating the consensus estimate of $0.72 by $0.02. The firm had revenue of $1.06 billion for the quarter, compared to the consensus estimate of $567.67 million. Annaly Capital Management had a return on equity of 16.49% and a net margin of 34.02%.

Annaly Capital Management Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, January 30th. Stockholders of record on Wednesday, December 31st will be issued a dividend of $0.70 per share. The ex-dividend date is Wednesday, December 31st. This represents a $2.80 dividend on an annualized basis and a dividend yield of 12.2%. Annaly Capital Management’s payout ratio is currently 100.72%.

Trending Headlines about Annaly Capital Management

Here are the key news stories impacting Annaly Capital Management this week:

• Positive Sentiment: Analyst upgrade and higher target from Keefe, Bruyette & Woods — KBW raised its price target to $25.00 and assigned an “outperform” rating, signaling analyst confidence and ~9% upside from the referenced price. KBW price target raise
• Positive Sentiment: Jones Trading bullish stance — Jones Trading issued a positive forecast and separately raised its price target to $25.00 with a “buy” rating, reinforcing sell-side momentum behind the name. Jones Trading positive forecast
• Positive Sentiment: Q4 results beat expectations — Annaly reported Q4 EPS of $0.74 vs. consensus $0.72 and revenue well above estimates; management highlighted tighter spreads, higher servicing income and asset growth. These results improve near-term cash generation and support the dividend coverage story. Q4 earnings and call
• Positive Sentiment: Book value improved year-over-year — Coverage notes book value rose to $20.21, reflecting asset/yield tailwinds that underpin NAV and dividend sustainability for the REIT. Zacks: Book value improvement
• Neutral Sentiment: Analyst/coverage pieces and deep dives — Several write-ups (Yahoo Finance deep dive, Seeking Alpha slides and transcript) provide detailed takeaways on portfolio mix, multi-segment growth and valuation after recent share gains; useful for investors doing a fundamentals review but not immediate catalysts. Yahoo Finance deep dive
• Negative Sentiment: Market reaction / profit-taking pressure — Despite positive results and multiple upgrades, intraday volume ran well above average, suggesting short-term profit-taking after recent share-price appreciation; that selling pressure appears to be the main driver of today’s weaker price action.

Analysts Set New Price Targets

A number of analysts have recently issued reports on the company. BTIG Research upgraded Annaly Capital Management from a “neutral” rating to a “buy” rating and set a $25.00 price objective on the stock in a research report on Tuesday, January 6th. JPMorgan Chase & Co. raised their price target on Annaly Capital Management from $21.00 to $22.00 and gave the stock an “overweight” rating in a research report on Monday, October 20th. Keefe, Bruyette & Woods raised their target price on Annaly Capital Management from $23.25 to $25.00 and gave the stock an “outperform” rating in a research note on Friday. Wells Fargo & Company reissued an “overweight” rating and set a $25.00 target price (up previously from $23.00) on shares of Annaly Capital Management in a research report on Thursday. Finally, Barclays set a $24.00 price objective on Annaly Capital Management and gave the company an “equal weight” rating in a research note on Friday. Seven research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $23.89.

Institutional Investors Weigh In On Annaly Capital Management

A number of large investors have recently modified their holdings of the stock. Financial Gravity Companies Inc. purchased a new stake in shares of Annaly Capital Management in the second quarter worth $25,000. Delos Wealth Advisors LLC purchased a new stake in Annaly Capital Management during the second quarter valued at $28,000. Evolution Wealth Management Inc. bought a new position in shares of Annaly Capital Management in the 2nd quarter worth approximately $29,000. Camelot Portfolios LLC bought a new position in Annaly Capital Management in the fourth quarter worth approximately $29,000. Finally, Elevation Point Wealth Partners LLC bought a new position in Annaly Capital Management in the 2nd quarter worth $34,000. Institutional investors own 51.56% of the company’s stock.

Annaly Capital Management Stock Performance

The stock has a market capitalization of $15.71 billion, a PE ratio of 8.27, a PEG ratio of 7.56 and a beta of 1.25. The stock has a 50-day moving average price of $23.03 and a two-hundred day moving average price of $21.71.

About Annaly Capital Management

Annaly Capital Management, Inc is a publicly traded real estate investment trust (REIT) that specializes in generating income through investment in mortgage-related assets. The company’s core business activities include the acquisition, financing, and management of a diversified portfolio of agency and non-agency residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), and other real estate debt instruments. Annaly seeks to profit from the spread between the interest earned on its mortgage investments and its cost of funds, as well as from capital gains realized through active portfolio management.

Founded in 1997 and headquartered in New York City, Annaly has grown to become one of the largest mortgage REITs in the United States.