Federal Agricultural Mortgage (NYSE:AGM) Shares Gap Down Following Weak Earnings

Federal Agricultural Mortgage Corporation (NYSE:AGM)’s share price gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $174.04, but opened at $161.73. Federal Agricultural Mortgage shares last traded at $157.8760, with a volume of 15,020 shares.

The credit services provider reported $3.66 earnings per share for the quarter, missing analysts’ consensus estimates of $4.50 by ($0.84). The business had revenue of $101.39 million for the quarter, compared to analyst estimates of $107.45 million. Federal Agricultural Mortgage had a return on equity of 18.63% and a net margin of 13.38%.

Federal Agricultural Mortgage Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Monday, March 16th will be issued a $1.60 dividend. The ex-dividend date is Monday, March 16th. This is a positive change from Federal Agricultural Mortgage’s previous quarterly dividend of $1.50. This represents a $6.40 dividend on an annualized basis and a yield of 4.1%. Federal Agricultural Mortgage’s dividend payout ratio is 34.17%.

Analyst Upgrades and Downgrades

Several analysts have recently commented on AGM shares. Keefe, Bruyette & Woods upgraded Federal Agricultural Mortgage from a “hold” rating to a “moderate buy” rating and raised their target price for the company from $217.00 to $219.00 in a research note on Wednesday, November 5th. Wall Street Zen raised Federal Agricultural Mortgage from a “sell” rating to a “hold” rating in a research note on Saturday, February 7th. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Federal Agricultural Mortgage in a research report on Monday, December 22nd. One research analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $219.00.

Hedge Funds Weigh In On Federal Agricultural Mortgage

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Invesco Ltd. increased its stake in shares of Federal Agricultural Mortgage by 4.7% during the 4th quarter. Invesco Ltd. now owns 15,351 shares of the credit services provider’s stock worth $2,695,000 after purchasing an additional 684 shares during the last quarter. Mercer Global Advisors Inc. ADV bought a new position in Federal Agricultural Mortgage during the fourth quarter valued at $301,000. Wellington Management Group LLP grew its stake in shares of Federal Agricultural Mortgage by 44.5% during the 4th quarter. Wellington Management Group LLP now owns 262,931 shares of the credit services provider’s stock worth $46,163,000 after acquiring an additional 80,911 shares during the period. Balyasny Asset Management L.P. purchased a new stake in Federal Agricultural Mortgage in the 4th quarter worth about $2,305,000. Finally, Bridgeway Capital Management LLC increased its holdings in Federal Agricultural Mortgage by 1.6% in the 4th quarter. Bridgeway Capital Management LLC now owns 71,174 shares of the credit services provider’s stock worth $12,496,000 after acquiring an additional 1,108 shares during the last quarter. 68.03% of the stock is owned by hedge funds and other institutional investors.

Federal Agricultural Mortgage Stock Performance

The firm has a market capitalization of $1.71 billion, a PE ratio of 8.91, a P/E/G ratio of 0.82 and a beta of 0.99. The company has a debt-to-equity ratio of 1.81, a current ratio of 0.56 and a quick ratio of 0.56. The company’s fifty day simple moving average is $174.68 and its 200 day simple moving average is $176.05.

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.