Dynex Capital (NYSE:DX) Shares Gap Down on Disappointing Earnings

Dynex Capital, Inc. (NYSE:DX) gapped down before the market opened on Monday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $13.61, but opened at $13.10. Dynex Capital shares last traded at $13.2770, with a volume of 2,025,139 shares traded.

The real estate investment trust reported $0.31 earnings per share for the quarter, missing analysts’ consensus estimates of $0.32 by ($0.01). Dynex Capital had a net margin of 59.80% and a return on equity of 6.83%.

Dynex Capital Announces Dividend

The business also recently declared a monthly dividend, which will be paid on Friday, May 1st. Shareholders of record on Thursday, April 23rd will be paid a $0.17 dividend. This represents a c) annualized dividend and a yield of 15.2%. The ex-dividend date is Thursday, April 23rd. Dynex Capital’s dividend payout ratio is currently 100.00%.

Wall Street Analyst Weigh In

Several brokerages have commented on DX. Weiss Ratings reiterated a “hold (c)” rating on shares of Dynex Capital in a research note on Friday, March 27th. Keefe, Bruyette & Woods reiterated an “outperform” rating on shares of Dynex Capital in a research note on Thursday, January 29th. Finally, JonesTrading increased their price target on shares of Dynex Capital from $14.00 to $15.25 and gave the company a “buy” rating in a research note on Tuesday, January 27th. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, Dynex Capital presently has an average rating of “Moderate Buy” and an average price target of $14.33.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in DX. AQR Capital Management LLC grew its stake in Dynex Capital by 54.6% during the 1st quarter. AQR Capital Management LLC now owns 103,183 shares of the real estate investment trust’s stock worth $1,343,000 after buying an additional 36,455 shares during the last quarter. Goldman Sachs Group Inc. grew its holdings in shares of Dynex Capital by 86.7% during the first quarter. Goldman Sachs Group Inc. now owns 804,419 shares of the real estate investment trust’s stock worth $10,474,000 after buying an additional 373,610 shares during the last quarter. Cetera Investment Advisers grew its holdings in shares of Dynex Capital by 51.5% during the second quarter. Cetera Investment Advisers now owns 25,149 shares of the real estate investment trust’s stock worth $307,000 after buying an additional 8,549 shares during the last quarter. JPMorgan Chase & Co. grew its holdings in shares of Dynex Capital by 241.6% during the second quarter. JPMorgan Chase & Co. now owns 183,247 shares of the real estate investment trust’s stock worth $2,239,000 after buying an additional 129,601 shares during the last quarter. Finally, New York State Common Retirement Fund grew its holdings in shares of Dynex Capital by 36.0% during the second quarter. New York State Common Retirement Fund now owns 34,774 shares of the real estate investment trust’s stock worth $425,000 after buying an additional 9,200 shares during the last quarter. Hedge funds and other institutional investors own 38.34% of the company’s stock.

Dynex Capital Stock Down 1.7%

The stock has a fifty day moving average of $13.35 and a 200-day moving average of $13.60. The stock has a market cap of $2.77 billion, a PE ratio of 6.56 and a beta of 0.99.

Dynex Capital Company Profile

Dynex Capital, Inc is a mortgage real estate investment trust (REIT) that specializes in acquiring and managing mortgage-related assets. The company’s primary business involves investing in residential mortgage-backed securities (RMBS), including agency-backed pools issued or guaranteed by government-sponsored entities such as Fannie Mae, Freddie Mac and Ginnie Mae, as well as selected non-agency RMBS. Dynex Capital seeks to generate net interest income by earning interest on its portfolio while employing leverage through secured repurchase agreements and other debt facilities.

In pursuing its investment objectives, Dynex Capital manages portfolio duration and interest rate exposures, with a focus on preserving capital and optimizing yield over the economic cycle.