AGNC Reports Better-Than-Expected Q4 Earnings

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.

Download the TipRanks mobile app now

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Read full Disclaimer & Disclosure

Related News:
Israeli Health Ministry to Buy 5M Doses of Novavax’s COVID-19 vaccine
L3Harris Posts Mixed Results for the Fourth Quarter
Nexstar Media Raises Quarterly Dividend by 29%