Zacks Investment Research upgraded shares of CAPSTEAD MTG CO/SH (NYSE:CMO) from a hold rating to a buy rating in a report issued on Tuesday morning, Zacks.com reports. They currently have $6.25 target price on the real estate investment trust’s stock.
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. “
Several other brokerages have also issued reports on CMO. JMP Securities raised CAPSTEAD MTG CO/SH from a market perform rating to an outperform rating and set a $6.00 price target on the stock in a research note on Monday, March 30th. Bank of America upgraded CAPSTEAD MTG CO/SH from a neutral rating to a buy rating in a report on Tuesday, April 28th. Finally, ValuEngine downgraded CAPSTEAD MTG CO/SH from a hold rating to a sell rating in a report on Tuesday, March 3rd. One equities research analyst has rated the stock with a sell rating and three have given a buy rating to the company’s stock. The stock presently has an average rating of Buy and an average target price of $6.13.
CAPSTEAD MTG CO/SH (NYSE:CMO) last issued its quarterly earnings results on Wednesday, April 29th. The real estate investment trust reported $0.16 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.14 by $0.02. CAPSTEAD MTG CO/SH had a positive return on equity of 9.11% and a negative net margin of 75.31%. The firm had revenue of $69.63 million for the quarter. Research analysts predict that CAPSTEAD MTG CO/SH will post 0.61 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Monday, July 20th. Stockholders of record on Tuesday, June 30th will be issued a dividend of $0.15 per share. The ex-dividend date of this dividend is Monday, June 29th. This represents a $0.60 annualized dividend and a dividend yield of 10.83%. CAPSTEAD MTG CO/SH’s dividend payout ratio is 120.00%.
In related news, Director John L. Bernard purchased 25,000 shares of the firm’s stock in a transaction that occurred on Wednesday, May 6th. The stock was acquired at an average price of $4.82 per share, for a total transaction of $120,500.00. Also, CFO Lance Phillips purchased 10,000 shares of the firm’s stock in a transaction that occurred on Friday, May 1st. The shares were bought at an average price of $4.91 per share, with a total value of $49,100.00. In the last 90 days, insiders have bought 55,000 shares of company stock valued at $266,000. Corporate insiders own 1.90% of the company’s stock.
Institutional investors have recently made changes to their positions in the stock. Macquarie Group Ltd. bought a new stake in CAPSTEAD MTG CO/SH during the fourth quarter worth $31,000. Deprince Race & Zollo Inc. bought a new stake in CAPSTEAD MTG CO/SH during the first quarter worth $42,000. Lavaca Capital LLC bought a new stake in CAPSTEAD MTG CO/SH during the first quarter worth $49,000. Aigen Investment Management LP grew its holdings in CAPSTEAD MTG CO/SH by 1,830.7% during the first quarter. Aigen Investment Management LP now owns 12,569 shares of the real estate investment trust’s stock worth $53,000 after buying an additional 11,918 shares in the last quarter. Finally, Catalyst Capital Advisors LLC grew its holdings in CAPSTEAD MTG CO/SH by 564.3% during the first quarter. Catalyst Capital Advisors LLC now owns 13,950 shares of the real estate investment trust’s stock worth $59,000 after buying an additional 11,850 shares in the last quarter. Institutional investors and hedge funds own 83.08% of the company’s stock.
About CAPSTEAD MTG CO/SH
Capstead Mortgage Corporation operates as a real estate investment trust (REIT) in the United States. It invests in a portfolio of residential mortgage pass-through securities primarily consisting of short-duration adjustable-rate mortgage securities issued and guaranteed by government-sponsored enterprises, or by an agency of the federal government.
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