Zacks Investment Research Downgrades ANNALY Cap Mgmt/SH (NLY) to Sell

ANNALY Cap Mgmt/SH (NYSE:NLY) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Monday.

According to Zacks, “Shares of Annaly have underperformed the industry in the past six months. While the company aims at investment in more credit-focused asset classes, any adversity in the macro-economic condition is likely to result in a widespread de-leveraging of the financial markets, forcing Annaly to sell its mortgage assets at unattractive prices. Further, Annaly’s performance also depends on the broader financial market environment. This makes it susceptible to economic downturns and geopolitical doldrums. Also, competition from other financial institutions and rising interest rates add to the company’s woes. Nonetheless, a strong financial position has enabled Annaly to maintain a consistent dividend payout for 20 consecutive quarters.”

Other analysts have also issued research reports about the stock. JPMorgan Chase & Co. lifted their price objective on shares of ANNALY Cap Mgmt/SH from $10.00 to $10.50 and gave the company a “$10.45” rating in a research note on Monday, July 23rd. Barclays set a $11.00 price objective on shares of ANNALY Cap Mgmt/SH and gave the company a “hold” rating in a research note on Tuesday, September 11th. Two equities research analysts have rated the stock with a sell rating and five have issued a hold rating to the company’s stock. The company presently has a consensus rating of “Hold” and an average target price of $10.88.

ANNALY Cap Mgmt/SH stock traded up $0.08 during mid-day trading on Monday, hitting $10.19. 430,808 shares of the stock were exchanged, compared to its average volume of 9,632,979. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.02 and a current ratio of 0.02. ANNALY Cap Mgmt/SH has a 12 month low of $9.94 and a 12 month high of $12.40. The firm has a market cap of $12.45 billion, a price-to-earnings ratio of 8.35 and a beta of 0.08.

ANNALY Cap Mgmt/SH (NYSE:NLY) last released its quarterly earnings results on Wednesday, August 1st. The real estate investment trust reported $0.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.29 by $0.01. ANNALY Cap Mgmt/SH had a net margin of 112.29% and a return on equity of 12.10%. The firm had revenue of $334.11 million during the quarter, compared to analyst estimates of $330.95 million. During the same quarter last year, the business earned $0.30 EPS. As a group, equities research analysts predict that ANNALY Cap Mgmt/SH will post 1.19 EPS for the current fiscal year.

Several large investors have recently added to or reduced their stakes in the company. Mycio Wealth Partners LLC acquired a new stake in ANNALY Cap Mgmt/SH in the 2nd quarter valued at $103,000. FormulaFolio Investments LLC acquired a new stake in ANNALY Cap Mgmt/SH in the 2nd quarter valued at $107,000. O Dell Group LLC acquired a new stake in ANNALY Cap Mgmt/SH in the 2nd quarter valued at $107,000. Campbell & CO Investment Adviser LLC acquired a new stake in ANNALY Cap Mgmt/SH in the 2nd quarter valued at $116,000. Finally, Qube Research & Technologies Ltd acquired a new stake in ANNALY Cap Mgmt/SH in the 2nd quarter valued at $129,000. Institutional investors own 51.31% of the company’s stock.

About ANNALY Cap Mgmt/SH

Annaly Capital Management, Inc, a diversified capital manager, invests in and finances residential and commercial assets. The company invests in various types of agency mortgage-backed securities, non-agency residential mortgage assets, and residential mortgage loans; and originates and invests in commercial mortgage loans, securities, and other commercial real estate investments.

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