Capstead Mortgage Corp. (NYSE:CMO) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a report released on Tuesday.
According to Zacks, “Capstead Mortgage Corporation, formed in 1985 and based in Dallas, Texas, is a self-managed real estate investment trust for federal income tax purposes. Capstead’s core investment strategy is managing a leveraged portfolio of residential mortgage pass-through securities consisting almost exclusively of ARM securities issued and guaranteed by government-sponsored entities, either Fannie Mae or Freddie Mac, or by an agency of the federal government, Ginnie Mae. Agency-guaranteed residential mortgage securities carry an implied AAA credit rating with limited, if any, credit risk. “
Separately, Keefe, Bruyette & Woods set a $9.50 price target on Capstead Mortgage Corp. and gave the stock a “market perform” rating in a report on Monday, August 1st. Four research analysts have rated the stock with a hold rating and two have issued a buy rating to the company. The company has an average rating of “Hold” and an average price target of $10.75.
Shares of Capstead Mortgage Corp. (NYSE:CMO) opened at 9.06 on Tuesday. Capstead Mortgage Corp. has a 52 week low of $7.48 and a 52 week high of $10.54. The stock has a market cap of $869.65 million, a price-to-earnings ratio of 10.53 and a beta of 0.36. The company has a 50-day moving average price of $9.83 and a 200-day moving average price of $9.84.
Capstead Mortgage Corp. (NYSE:CMO) last posted its quarterly earnings results on Wednesday, July 27th. The real estate investment trust reported $0.19 EPS for the quarter, missing the Zacks’ consensus estimate of $0.23 by $0.04. Capstead Mortgage Corp. had a return on equity of 8.90% and a net margin of 44.67%. During the same period in the previous year, the firm earned $0.22 earnings per share. Equities analysts anticipate that Capstead Mortgage Corp. will post $0.83 EPS for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 20th. Stockholders of record on Friday, September 30th will be issued a dividend of $0.23 per share. The ex-dividend date is Wednesday, September 28th. This represents a $0.92 annualized dividend and a dividend yield of 10.15%. Capstead Mortgage Corp.’s dividend payout ratio (DPR) is 104.55%.
Several hedge funds have recently modified their holdings of the company. Pacad Investment Ltd. purchased a new stake in shares of Capstead Mortgage Corp. during the first quarter valued at about $103,000. Amalgamated Bank boosted its stake in shares of Capstead Mortgage Corp. by 10.4% in the second quarter. Amalgamated Bank now owns 11,370 shares of the real estate investment trust’s stock valued at $117,000 after buying an additional 1,067 shares during the period. PineBridge Investments L.P. boosted its stake in shares of Capstead Mortgage Corp. by 3.8% in the second quarter. PineBridge Investments L.P. now owns 12,169 shares of the real estate investment trust’s stock valued at $118,000 after buying an additional 447 shares during the period. Teacher Retirement System of Texas boosted its stake in shares of Capstead Mortgage Corp. by 13.8% in the second quarter. Teacher Retirement System of Texas now owns 13,387 shares of the real estate investment trust’s stock valued at $130,000 after buying an additional 1,623 shares during the period. Finally, Panagora Asset Management Inc. purchased a new stake in shares of Capstead Mortgage Corp. during the second quarter valued at about $144,000. 66.38% of the stock is currently owned by institutional investors and hedge funds.
About Capstead Mortgage Corp.
Capstead Mortgage Corporation is a self-managed real estate investment trust (REIT). The Company invests in a leveraged portfolio of residential mortgage pass-through securities consisting exclusively of short-duration adjustable-rate mortgage (ARM) securities issued and guaranteed by government-sponsored enterprises (GSEs), either the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac) (together, the GSEs), or by an agency of the federal Government, the Government National Mortgage Association (Ginnie Mae).
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