Is American Capital Agency (NASDAQ:AGNC) In Trouble? Morgan Stanley Issues Downgrade.


American Capital Agency (NASDAQ:AGNC) Receives a Downgrade

Shares of American Capital Agency (NASDAQ:AGNC) were lowered to a Underweight by research analysts at Morgan Stanley. AGNC’s rating of a Equal-Weight has been discontinued.

From a total of 15 analysts covering American Capital Agency Corp. (NASDAQ:AGNC) stock, 8 rate it a ”Buy”, 3 a “Sell”, and 6 a ”Hold”. This means that 47% of the ratings are positive. The highest target price is $23 while the lowest target price is $16. The mean of all analyst targets is $20.25 with a 24.07% above today’s ($17.12) stock price. American Capital Agency Corp. was the topic of 9 analyst reports since July 30, 2015 according to the firm StockzIntelligence Inc. Deutsche Bank maintained shares on October 28 with “Hold” rating. Wunderlich downgraded AGNC stock in a recent report from October 27 to “Hold” rating. Finally, Nomura upgraded the stock to “Buy” rating in a report issued on an August 12.

Approximately 800,312 shares of stock traded hands. American Capital Agency Corp. (NASDAQ:AGNC) has declined 16.62% since May 13, 2015 and is downtrending. It has underperformed by 13.99% the S&P500.

The overall sentiment of institutions has increased to 1.35 in Q2 2015. Its up 0.44, from 0.91 in 2015Q2. The ratio is positive, as 22 institutions have sold all the shares of American Capital Agency Corp. that they owned while 105 funds have taken shares off the table. 56 funds have purchased shares for the first time while 115 added to their positions. These institutions now hold 213.41 million shares or 6.07% more than the 201.19 million shares they owned in 2015Q2.

The Fund Talkot Capital Llc currently is holding shares equating to 14.56% of its total portfolio in American Capital Agency Corp. representing a total of 974,877 shares. Another fund,Feinberg Stephen, is holding a total of 7.47 million shares equating to 11.59% of their holdings. Additionally, Penn Mutual Life Insurance Co has a 627,000 share stake in American Capital Agency Corp. which represents 10.5% of their total portfolio. The Fund, Philadelphia Financial Management Of San Francisco Llc, based out of California, has also built up a stake in the stock, which represents a total of 4.03% of their total portfolio. Finally Whitebox Advisors Llc, a fund which is based in the state of Minnesota reported a total holdings of 3.90 million shares.

Insider activity is a very important aspect to track on any stock. Going back to March 9, 2015, shareholders of American Capital Agency Corp. have witnessed 0 insider buys, and a total of 3 selling transactions equating to a net activity of approximately $116,493 . Kuehl Christopher sold 17 shares worth approximately $325. Dobbs Randy E. sold 4,500 shares worth approximately $86,301. Federico Peter J sold 848 shares worth approximately $16,681. Davis Morris A. sold 1,253 shares worth approximately $26,012. The company insider Kain Gary D sold 40,583 shares worth $885,029.

American Capital Agency Corp. operates as a real estate investment trust in the United States. The company has a market cap of $5.90 billion. The Company’s income comes primarily from its investments in agency mortgage-backed securities (agency MBS). It currently has negative earnings. The Company’s investments consist of residential mortgage pass-through securities and collateralized mortgage obligations (CMOs) guaranteed by a government-sponsored enterprise, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), or by a United States Government agency, such as the Government National Mortgage Association (Ginnie Mae).

According to Zacks Investment Research, “AMER CAPITAL AGENCY CORP. is a newly-organized Delaware corporation formed to invest exclusively in single-family residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by a U.S. Government agency or a U.S. Government-sponsored entity. The Company will be externally managed and advised by American Capital Agency Management, LLC, a subsidiary of a wholly-owned portfolio company of American Capital. The Company will elect to be taxed, and intends to qualify, as a real estate investment trust for federal income tax purposes.”