AGNC Investment (NASDAQ:AGNC), a real estate investment trust, reported mixed results for the fourth quarter of 2022. The company benefitted from the improved Agency mortgage-backed securities (MBS) market during the quarter.
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Q4 net spread and dollar roll income per share of $0.74 surpassed the consensus estimate of $0.66 but declined about 12% from the last quarter. Meanwhile, the company reported interest income of $347 million, down 7% sequentially. The figure, however, missed the Street’s estimate of $395.6 million.
As of December 31, 2022, the company’s investment portfolio stood at $59.5 billion. It includes $39.5 billion of Agency MBS, $18.6 billion of net TBA mortgage position, and the remaining comprises credit risk transfer and non-Agency securities.
What is the Parget Trice for AGNC?
On TipRanks, the average AGNC stock price target stands at $11.92, which implies an upside potential of 5.7% from the current levels. Overall, the stock has a Moderate Buy consensus rating based on two Buys and two Holds.
AGNC’s impressive dividend yield of 12.3% supports the bull case. Also, it compares favorably with the financial sector’s average of 2.1%. The company has been consistently paying a monthly dividend of $0.12 per share over the past three years.