Federal Agricultural Mortgage (NYSE:AGM) Posts Quarterly Earnings Results

Federal Agricultural Mortgage (NYSE:AGM) announced its quarterly earnings data on Thursday. The credit services provider reported $5.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.87 by $0.53, FiscalAI reports. The company had revenue of $125.01 million for the quarter, compared to analysts’ expectations of $113.51 million. Federal Agricultural Mortgage had a return on equity of 19.09% and a net margin of 29.98%.

Here are the key takeaways from Federal Agricultural Mortgage’s conference call:

• Record second-quarter performance: Farmer Mac reported all-time highs in outstanding business volume of $37.2 billion, revenue of $125 million, and core earnings of $59 million, or $5.40 per diluted share. Return on equity was 18.9%.
• Broad-based volume growth continued across the business, including strong Farm & Ranch loan purchases, renewed AgVantage wholesale activity, and infrastructure demand tied to renewable energy, broadband, data centers, and electrification. Management expects further growth, supported by robust pipelines and limited AgVantage maturities in the second half.
• Management expects positive operating leverage as expense growth moderates, with a full-year operating efficiency ratio forecast at 27%–29%. The newly launched Farmer Mac Loan Exchange platform is intended to improve scalability, efficiency, and future product development.
• Credit provisioning increased to $7 million, including reserves tied to two deteriorating Farm & Ranch loans and broader credit migration. Executives also cited risks from agricultural-sector volatility, higher fuel and fertilizer costs, trade policy, global conflicts, interest rates, and potential data-center market headwinds.
• Core capital rose by $141 million to $1.9 billion after a successful $100 million preferred-stock issuance, leaving capital 64% above the statutory minimum. Farmer Mac also expects to introduce a credit-risk-transfer program in 2026 to improve capital efficiency and support additional growth.

Federal Agricultural Mortgage Stock Performance

AGM traded up $6.66 during trading hours on Friday, reaching $226.96. The company’s stock had a trading volume of 223,047 shares, compared to its average volume of 118,651. The company’s 50-day moving average is $193.87 and its 200-day moving average is $175.09. Federal Agricultural Mortgage has a 52 week low of $136.57 and a 52 week high of $228.38. The firm has a market cap of $2.46 billion, a PE ratio of 12.40, a price-to-earnings-growth ratio of 1.01 and a beta of 0.99. The company has a debt-to-equity ratio of 1.93, a quick ratio of 0.56 and a current ratio of 0.56.

Federal Agricultural Mortgage Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were paid a $1.60 dividend. This represents a $6.40 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date was Monday, June 15th. Federal Agricultural Mortgage’s dividend payout ratio is 36.82%.

Analyst Ratings Changes

AGM has been the topic of a number of recent analyst reports. Wall Street Zen upgraded shares of Federal Agricultural Mortgage from a “sell” rating to a “hold” rating in a report on Saturday, May 9th. Weiss Ratings raised shares of Federal Agricultural Mortgage from a “hold (c-)” rating to a “hold (c)” rating in a research report on Monday, June 29th. Finally, Keefe, Bruyette & Woods boosted their price objective on shares of Federal Agricultural Mortgage from $215.00 to $228.00 and gave the stock an “outperform” rating in a research note on Tuesday, May 12th. One research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $228.00.

Hedge Funds Weigh In On Federal Agricultural Mortgage

Institutional investors and hedge funds have recently modified their holdings of the stock. Captrust Financial Advisors lifted its stake in shares of Federal Agricultural Mortgage by 14.8% during the 4th quarter. Captrust Financial Advisors now owns 358,908 shares of the credit services provider’s stock worth $63,013,000 after buying an additional 46,262 shares during the last quarter. Boston Partners grew its stake in Federal Agricultural Mortgage by 2.0% in the 4th quarter. Boston Partners now owns 345,551 shares of the credit services provider’s stock valued at $60,191,000 after buying an additional 6,800 shares during the last quarter. Wellington Management Group LLP raised its holdings in Federal Agricultural Mortgage by 44.5% in the 4th quarter. Wellington Management Group LLP now owns 262,931 shares of the credit services provider’s stock valued at $46,163,000 after acquiring an additional 80,911 shares during the period. Loomis Sayles & Co. L P raised its holdings in Federal Agricultural Mortgage by 23.8% in the 4th quarter. Loomis Sayles & Co. L P now owns 225,325 shares of the credit services provider’s stock valued at $39,560,000 after acquiring an additional 43,266 shares during the period. Finally, Raymond James Financial Inc. lifted its position in Federal Agricultural Mortgage by 18.3% during the third quarter. Raymond James Financial Inc. now owns 182,745 shares of the credit services provider’s stock worth $30,697,000 after acquiring an additional 28,228 shares during the last quarter. 68.03% of the stock is currently owned by institutional investors and hedge funds.

About Federal Agricultural Mortgage

Federal Agricultural Mortgage Corporation (NYSE: AGM), commonly known as Farmer Mac, is a government-sponsored enterprise chartered in 1988 under the Agricultural Credit Act of 1987. Headquartered in Washington, DC, Farmer Mac was established to enhance the availability of mortgage credit for the agricultural and rural utility sectors. The corporation operates as a secondary market for agricultural real estate and rural infrastructure loans, providing lenders with liquidity and risk management solutions.

The company’s principal business activities include purchasing and securitizing long-term fixed-rate agricultural mortgage loans and rural utilities loans originated by approved lenders.