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.

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

Dynex Capital Announces Dividend

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

Wall Street Analysts Forecast Growth

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

Institutional Investors Weigh In On Dynex Capital

Several institutional investors have recently made changes to their positions in the stock. Corient Private Wealth LLC purchased a new stake in shares of Dynex Capital during the 4th quarter worth $307,000. Mercer Global Advisors Inc. ADV purchased a new stake in shares of Dynex Capital during the 4th quarter worth approximately $245,000. Vident Advisory LLC purchased a new stake in shares of Dynex Capital during the 4th quarter worth approximately $253,000. Tudor Investment Corp ET AL purchased a new stake in shares of Dynex Capital during the 4th quarter worth approximately $520,000. Finally, Engineers Gate Manager LP boosted its stake in shares of Dynex Capital by 290.8% during the 4th quarter. Engineers Gate Manager LP now owns 151,377 shares of the real estate investment trust’s stock worth $2,121,000 after acquiring an additional 112,644 shares in the last quarter. 38.34% of the stock is currently owned by hedge funds and other institutional investors.

Dynex Capital Trading Down 1.7%

The company has a 50 day moving average price of $13.35 and a 200 day moving average price of $13.60. The firm 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.