Western Asset Mortgage Capital (NYSE:WMC) Rating Lowered to Sell at Zacks Investment Research

Western Asset Mortgage Capital (NYSE:WMC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Sunday, Zacks.com reports.

According to Zacks, “Western Asset Mortgage Capital Corporation is focused on investing in, financing and managing primarily residential mortgage-backed securities for which the principal and interest payments are guaranteed by a U.S. Government agency or federally chartered corporation. Western Asset Mortgage Capital Corporation is headquartered in Pasadena, California. “

Separately, Keefe, Bruyette & Woods initiated coverage on shares of Western Asset Mortgage Capital in a report on Sunday, March 17th. They set a “market perform” rating and a $10.50 price target for the company.

Western Asset Mortgage Capital stock opened at $10.14 on Friday. The company has a debt-to-equity ratio of 7.51, a current ratio of 700.59 and a quick ratio of 700.59. The firm has a market capitalization of $535.97 million, a P/E ratio of 7.46 and a beta of 0.79. Western Asset Mortgage Capital has a one year low of $8.26 and a one year high of $11.38. The stock’s fifty day simple moving average is $9.89.

Western Asset Mortgage Capital (NYSE:WMC) last posted its earnings results on Tuesday, May 7th. The financial services provider reported $0.32 EPS for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.32. The firm had revenue of $15.63 million for the quarter, compared to the consensus estimate of $20.90 million. Western Asset Mortgage Capital had a net margin of 13.99% and a return on equity of 11.99%. The business’s quarterly revenue was down 8.7% on a year-over-year basis. During the same period in the prior year, the business posted $0.34 earnings per share. Equities research analysts forecast that Western Asset Mortgage Capital will post 1.28 EPS for the current year.

In other news, Director Jennifer Murphy purchased 10,000 shares of the firm’s stock in a transaction on Tuesday, May 21st. The stock was bought at an average cost of $9.98 per share, for a total transaction of $99,800.00. Following the completion of the acquisition, the director now directly owns 85,000 shares of the company’s stock, valued at $848,300. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CIO Harris Trifon purchased 3,500 shares of the firm’s stock in a transaction on Thursday, May 23rd. The shares were purchased at an average price of $10.05 per share, with a total value of $35,175.00. Following the completion of the acquisition, the executive now directly owns 6,003 shares of the company’s stock, valued at $60,330.15. The disclosure for this purchase can be found here. 0.49% of the stock is owned by corporate insiders.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. KAMES CAPITAL plc acquired a new position in Western Asset Mortgage Capital in the first quarter worth about $1,021,000. Virginia Retirement Systems ET AL acquired a new position in Western Asset Mortgage Capital in the first quarter worth about $521,000. Northern Trust Corp raised its position in Western Asset Mortgage Capital by 15.6% in the fourth quarter. Northern Trust Corp now owns 575,808 shares of the financial services provider’s stock worth $4,802,000 after purchasing an additional 77,588 shares in the last quarter. Rhumbline Advisers raised its position in Western Asset Mortgage Capital by 46.8% in the fourth quarter. Rhumbline Advisers now owns 59,018 shares of the financial services provider’s stock worth $492,000 after purchasing an additional 18,822 shares in the last quarter. Finally, Metropolitan Life Insurance Co. NY raised its position in Western Asset Mortgage Capital by 459.1% in the fourth quarter. Metropolitan Life Insurance Co. NY now owns 17,137 shares of the financial services provider’s stock worth $143,000 after purchasing an additional 14,072 shares in the last quarter. Institutional investors and hedge funds own 42.32% of the company’s stock.

Western Asset Mortgage Capital Company Profile

Western Asset Mortgage Capital Corporation operates as a real estate investment trust in the United States. It focuses on investing in, financing, and managing a portfolio of agency and non-agency residential mortgage-backed securities and commercial mortgage-backed securities, residential whole-loans, residential bridge loans, securitized commercial loans, and other financial assets.

Read More: Municipal Bonds

Get a free copy of the Zacks research report on Western Asset Mortgage Capital (WMC)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Receive News & Ratings for Western Asset Mortgage Capital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Western Asset Mortgage Capital and related companies with MarketBeat.com's FREE daily email newsletter.