Shares of Annaly Capital Management, Inc. (NYSE: NLY) gained 1.2% in Wednesday’s extended trading session after the company reported financial results for the fourth-quarter of 2021. The company engages in the investment and financing of residential and commercial assets.
Earnings available for distribution (EAD) per share of $0.27 were in line with the consensus estimate. The company had reported an EAD of $0.60 in the same quarter last year.
Net interest income of the company declined 16.6% year-over-year to $361 million, while net interest margin expanded five basis points to 2.03%.
For the fourth quarter, Annaly Capital reported a book value per common share of $7.97 against $8.92 per share a year ago. Annualized EAD return on average equity stood at 13.10%, up from 13.03% in the prior-year quarter.
As of December 31, 2021, the company held total investment portfolio worth $74.8 billion, down 13.4% year-over-year. About 85% of the total portfolio comprises securities, the majority of which are agency mortgage-backed securities.
In response to the fourth-quarter results, the President and CEO of Annaly Capital, David Finkelstein, said, “As financial market volatility has increased in anticipation of monetary policy normalization, our portfolio is well prepared for periods of turbulence with historically low leverage, a conservatively hedged portfolio and disciplined asset allocation across the spectrum of housing finance. Despite the volatility, we are encouraged by improving investment returns in Agency MBS and are poised to capitalize on attractive opportunities as they arise.”
Wall Street’s Take
Overall, the stock has a Hold consensus rating based on 3 Holds and 1 Buy. The average Annaly Capital price target of $7.75 implies 2% upside potential from current levels. Shares have decreased 5.5% so far this year.
News Sentiment for Annaly Capital is Positive based on 15 articles over the past seven days. All the articles have Bullish sentiment, compared to a sector average of 62%, and none have Bearish Sentiment, compared to a sector average of 38%.
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