ARMOUR Residential REIT, Inc. (NYSE:ARR) declared a monthly dividend on Wednesday, May 20th, Wall Street Journal reports. Shareholders of record on Monday, June 15th will be paid a dividend of 0.09 per share by the real estate investment trust on Monday, June 29th. This represents a $1.08 dividend on an annualized basis and a yield of 13.24%. The ex-dividend date of this dividend is Friday, June 12th.
ARMOUR Residential REIT has decreased its dividend by an average of 3.6% per year over the last three years. ARMOUR Residential REIT has a payout ratio of 163.2% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect ARMOUR Residential REIT to earn $1.50 per share next year, which means the company may not be able to cover its $2.04 annual dividend with an expected future payout ratio of 136.0%.
Shares of ARR stock traded up $0.43 on Wednesday, hitting $8.16. 1,237,118 shares of the stock were exchanged, compared to its average volume of 1,481,383. The firm has a market capitalization of $524.79 million, a PE ratio of -0.86 and a beta of 1.10. ARMOUR Residential REIT has a one year low of $4.95 and a one year high of $21.15. The firm’s 50 day moving average is $8.11 and its two-hundred day moving average is $15.10.
In other news, CEO Scott Ulm purchased 10,000 shares of the company’s stock in a transaction that occurred on Monday, April 6th. The shares were bought at an average cost of $6.90 per share, for a total transaction of $69,000.00. Following the completion of the transaction, the chief executive officer now directly owns 154,864 shares of the company’s stock, valued at approximately $1,068,561.60. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO James R. Mountain purchased 3,000 shares of the company’s stock in a transaction that occurred on Friday, March 13th. The shares were purchased at an average price of $12.82 per share, for a total transaction of $38,460.00. Following the completion of the transaction, the chief financial officer now directly owns 62,000 shares of the company’s stock, valued at $794,840. The disclosure for this purchase can be found here. Over the last quarter, insiders bought 26,500 shares of company stock worth $263,015. Corporate insiders own 1.30% of the company’s stock.
Several equities analysts recently issued reports on the company. Nomura Securities restated a “neutral” rating on shares of ARMOUR Residential REIT in a research report on Tuesday, February 25th. Zacks Investment Research lowered ARMOUR Residential REIT from a “buy” rating to a “sell” rating in a research report on Friday, May 8th. Barclays restated a “sell” rating and set a $8.00 price target (down from $19.00) on shares of ARMOUR Residential REIT in a research report on Wednesday, April 29th. Nomura reiterated a “hold” rating and issued a $12.00 price objective on shares of ARMOUR Residential REIT in a research report on Thursday, April 30th. Finally, ValuEngine lowered ARMOUR Residential REIT from a “sell” rating to a “strong sell” rating in a research report on Thursday, April 2nd. Three research analysts have rated the stock with a sell rating, two have issued a hold rating and one has given a buy rating to the stock. The company presently has an average rating of “Hold” and a consensus price target of $13.35.
About ARMOUR Residential REIT
ARMOUR Residential REIT, Inc invests in residential mortgage backed securities in the United States. The company is managed by ARMOUR Capital Management LP. Its securities portfolio primarily consists of the United States Government-sponsored entity's (GSE) and the Government National Mortgage Administration's issued or guaranteed securities backed by fixed rate, hybrid adjustable rate, and adjustable rate home loans, as well as unsecured notes and bonds issued by the GSE and the United States treasuries; and money market instruments.
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