AGNC Investment Corp. (AGNC) has reported better-than-expected earnings for the fourth quarter of 2021. Net spread and dollar roll income per common share of $0.75 surpassed the analyst estimates of $0.68. Further, the company reported a net interest income of $247 million for the quarter.
The real estate investment trust primarily invests in agency 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.
As of December 31, 2021, the company’s investment portfolio totaled $82 billion, consisting of $52.6 billion Agency MBS, $27.1 billion net TBA mortgage position and $2.3 billion credit risk transfer and non-Agency securities.
AGNC’s weighted average constant prepayment rates for the fourth quarter stood at 18.6%, compared to 22.5% in the previous quarter.
Wall Street’s Take
Consensus among analysts is a Moderate Buy based on 2 Buys and 1 Hold. The average AGNC price target stands at $16.83 and implies upside potential of 13% to current levels. Shares of the company have gained 6.4% over the past year.
Negative Sentiment
TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on AGNC with 6.5% of investors decreasing their exposure to the stock over the past 30 days.
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