ARMOUR Residential REIT (NYSE:ARR) Hits New 1-Year Low – What’s Next?

ARMOUR Residential REIT, Inc. (NYSE:ARR)’s stock price hit a new 52-week low during trading on Tuesday. The stock traded as low as $12.13 and last traded at $12.2340, with a volume of 412,849 shares changing hands. The stock had previously closed at $12.41.

Analysts Set New Price Targets

ARR has been the subject of a number of recent analyst reports. Weiss Ratings downgraded shares of ARMOUR Residential REIT from a “sell (d+)” rating to a “sell (d)” rating in a report on Friday, October 23rd. JonesTrading reduced their price target on shares of ARMOUR Residential REIT from $19.00 to $15.25 and set a “buy” rating on the stock in a research report on Thursday, October 22nd. Zacks Research raised shares of ARMOUR Residential REIT from a “strong sell” rating to a “hold” rating in a research note on Tuesday, July 21st. Wall Street Zen downgraded shares of ARMOUR Residential REIT from a “sell” rating to a “strong sell” rating in a research report on Saturday, October 24th. Finally, B. Riley Financial lowered their price objective on shares of ARMOUR Residential REIT from $18.00 to $14.50 and set a “neutral” rating for the company in a research report on Friday, October 23rd. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $16.56.

ARMOUR Residential REIT Price Performance

The firm’s fifty day moving average price is $14.35 and its 200-day moving average price is $16.48. The company has a market capitalization of $1.81 billion, a price-to-earnings ratio of -407.17 and a beta of 1.47.

ARMOUR Residential REIT (NYSE:ARR) last announced its quarterly earnings results on Wednesday, October 21st. The real estate investment trust reported $0.71 EPS for the quarter, meeting analysts’ consensus estimates of $0.71. The company had revenue of $121.70 million during the quarter, compared to analysts’ expectations of $119.84 million. ARMOUR Residential REIT had a positive return on equity of 15.90% and a negative net margin of 5.09%. On average, research analysts predict that ARMOUR Residential REIT, Inc. will post 2.88 earnings per share for the current year.

ARMOUR Residential REIT Dividend Announcement

The company also recently announced a monthly dividend, which will be paid on Friday, November 27th. Shareholders of record on Monday, November 16th will be given a $0.24 dividend. The ex-dividend date is Monday, November 16th. This represents a $2.88 annualized dividend and a yield of 23.6%. ARMOUR Residential REIT’s dividend payout ratio (DPR) is currently -9,600.00%.

Insider Activity at ARMOUR Residential REIT

In other news, Chairman Daniel Staton sold 35,583 shares of ARMOUR Residential REIT stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $15.86, for a total transaction of $564,346.38. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 0.19% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in ARR. Independent Financial Group LLC bought a new position in ARMOUR Residential REIT during the 1st quarter worth approximately $1,458,000. First Trust Advisors LP boosted its stake in shares of ARMOUR Residential REIT by 234.6% in the 1st quarter. First Trust Advisors LP now owns 664,247 shares of the real estate investment trust’s stock valued at $11,080,000 after purchasing an additional 465,733 shares during the last quarter. Envestnet Asset Management Inc. bought a new stake in shares of ARMOUR Residential REIT in the 2nd quarter valued at $6,536,000. Bank of New York Mellon Corp acquired a new stake in shares of ARMOUR Residential REIT during the second quarter worth $13,757,000. Finally, State Street Corp increased its position in shares of ARMOUR Residential REIT by 15.0% during the second quarter. State Street Corp now owns 4,745,078 shares of the real estate investment trust’s stock worth $82,802,000 after buying an additional 619,020 shares during the period. Institutional investors own 54.17% of the company’s stock.

About ARMOUR Residential REIT

ARMOUR Residential REIT, Inc is a real estate investment trust that invests primarily in residential mortgage-backed securities. Its portfolio generally consists of securities issued or guaranteed by U.S. government-sponsored enterprises, including Fannie Mae and Freddie Mac, or by U.S. government agencies such as Ginnie Mae.

The company invests in a range of agency mortgage securities, including fixed-rate and adjustable-rate mortgage pass-through securities, collateralized mortgage obligations, specified pools and to-be-announced securities.