Dynex Capital (NYSE:DX) Shares Gap Down Following Weak Earnings

Dynex Capital, Inc. (NYSE:DX)’s stock price gapped down before the market opened on Monday following a dissappointing earnings announcement. The stock had previously closed at $10.93, but opened at $10.59. Dynex Capital shares last traded at $10.5450, with a volume of 1,565,302 shares traded.

The real estate investment trust reported $0.38 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.39 by ($0.01). Dynex Capital had a return on equity of 8.85% and a net margin of 49.18%.

Dynex Capital Announces Dividend

The company also recently announced a monthly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Thursday, October 22nd will be given a dividend of $0.17 per share. The ex-dividend date is Thursday, October 22nd. This represents a $2.04 dividend on an annualized basis and a dividend yield of 19.4%. Dynex Capital’s payout ratio is presently 77.57%.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the company. JonesTrading reiterated a “buy” rating and issued a $14.75 price objective on shares of Dynex Capital in a research report on Tuesday, July 21st. BTIG Research set a $12.00 target price on shares of Dynex Capital and gave the company a “buy” rating in a research report on Tuesday, October 6th. Weiss Ratings cut shares of Dynex Capital from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday. Finally, Keefe, Bruyette & Woods reissued an “outperform” rating on shares of Dynex Capital in a research note on Tuesday, July 21st. Three equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $13.94.

Insider Activity at Dynex Capital

In other news, CIO John Jr purchased 2,500 shares of the business’s stock in a transaction that occurred on Friday, September 25th. The shares were acquired at an average cost of $11.18 per share, for a total transaction of $27,950.00. Following the transaction, the executive directly owned 58,695 shares of the company’s stock, valued at approximately $656,210.10. The trade was a 4.45% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this link. 0.76% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Dynex Capital

Large investors have recently bought and sold shares of the company. Parisi Gray Wealth Management bought a new position in shares of Dynex Capital during the third quarter worth $151,000. Firethorn Wealth Partners LLC acquired a new position in shares of Dynex Capital in the 3rd quarter valued at $144,000. Focus Financial Network Inc. acquired a new position in shares of Dynex Capital in the 3rd quarter valued at $139,000. Fermata Advisors LLC increased its position in shares of Dynex Capital by 47.2% in the 3rd quarter. Fermata Advisors LLC now owns 25,386 shares of the real estate investment trust’s stock valued at $283,000 after buying an additional 8,136 shares in the last quarter. Finally, WoodTrust Financial Corp increased its position in shares of Dynex Capital by 13.3% in the 3rd quarter. WoodTrust Financial Corp now owns 34,000 shares of the real estate investment trust’s stock valued at $379,000 after buying an additional 4,000 shares in the last quarter. Institutional investors own 38.34% of the company’s stock.

Dynex Capital Stock Performance

The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.16 and a current ratio of 1.16. The stock’s 50-day moving average is $12.15 and its 200 day moving average is $12.75. The firm has a market cap of $2.61 billion, a P/E ratio of 4.01 and a beta of 0.98.

About Dynex Capital

Dynex Capital, Inc (NYSE: DX) is a mortgage real estate investment trust that invests in mortgage-related assets. Its portfolio primarily consists of agency mortgage-backed securities, including securities backed by residential and commercial mortgages, as well as other mortgage assets.

The company uses financing arrangements, including repurchase agreements, to support its investment activities and seeks to generate income from the spread between the returns on its investments and its financing and operating costs.