NLY Intrinsic Value Calculation – Annaly Capital Management Prepared to Take Advantage of MBS Market Recovery

Trending News ☀️

Annaly Capital Management ($NYSE:NLY) is a real estate investment trust that is well-prepared to take advantage of a potential market recovery in mortgage-backed securities (MBS). The company specializes in investing in, and financing, mortgage-backed securities and other real estate-related investments. Annaly Capital Management has an extensive portfolio of MBS that it is constantly managing and repositioning in order to maximize returns on its investments. Annaly has grown to become a leader in the mortgage industry, offering investors attractive returns with low ongoing risk. Annaly has a long track record of success, and is considered to be one of the most reliable REITs for investors.

Annaly’s portfolio has been maintained and updated over the years with a focus on security, liquidity, and yield. Moreover, Annaly’s management team is experienced in navigating the MBS market and is adept at finding opportunities to make money even during a downturn. With its extensive portfolio of MBS and experienced management team, Annaly is well-positioned to capitalize on any potential upturn. Investors looking to capitalize on a shift in the MBS market should consider investing in Annaly Capital Management.

Price History

Thursday was a good day for Annaly Capital Management stockholders, as the stock opened at $19.0 and closed at $19.2, up by 0.2% from previous closing price of 19.2. The small bump in the stock price could be taken as a sign that Annaly is prepared to take advantage of the potential recovery of the Mortgage-Backed Securities (MBS) market. The MBS market has been volatile but the recent uptick in housing activity has encouraged investors in Annaly’s stocks, with many predicting that the company is well positioned to benefit from a recovering market. The company has been able to survive turbulent markets in the past, and is now ready to capitalize on the current positive trends in the market. With a strong portfolio of MBS investments, Annaly is well positioned to continue to generate steady returns for its shareholders.

This is especially true in an environment where mortgage rates are low and homeowners are refinancing their mortgages. The small gain in their stock price could be taken as a sign of optimism that the company will be able to leverage their investments into additional growth and profits. With a strong portfolio of MBS investments, and a clear focus on taking advantage of positive market trends, Annaly Capital Management looks well positioned to capitalize on any potential recovery in the near future. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for NLY. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for NLY. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for NLY. More…

Key Ratios Snapshot

Some of the financial key ratios for NLY are shown below. More…

Analysis – NLY Intrinsic Value Calculation

GoodWhale has been analyzing ANNALY CAPITAL MANAGEMENT’s financials and has come to the conclusion that the intrinsic value of their share is around $25.4, based on our proprietary Valuation Line. Our analysis shows that the stock is currently being traded at $19.2, which is 24.5% below its intrinsic value. As such, we believe that ANNALY CAPITAL MANAGEMENT is undervalued at present and presents an attractive investment opportunity. More…

Peers

Annaly’s primary business objective is to generate net income for distribution to its shareholders from its portfolio of mortgage assets. Annaly is managed and advised by its subsidiaries, Annaly Management Company LLC and Hollister Asset Management LLC. As of December 31, 2018, Annaly had equity investments in 97 real estate investment trusts (“REITs”) and 12 companies that are engaged in the business of owning and operating real estate assets (the “Operating Companies”). AGNC Investment Corp., Dynex Capital Inc., Chimera Investment Corp., and Annaly Capital Management Inc. are all companies that invest in mortgage assets in the United States. These companies all have different strategies and focus on different aspects of the market, but they all aim to generate income for their shareholders.

– AGNC Investment Corp ($NASDAQ:AGNC)

AGNC Investment Corp is a real estate investment trust that invests primarily in residential mortgage-backed securities. The company has a market cap of 4.37B as of 2022.

– Dynex Capital Inc ($NYSE:DX)

Dynex Capital Inc is a mortgage real estate investment trust that invests in and manages a portfolio of mortgage-backed securities. As of December 31, 2020, the company’s investment portfolio totaled $9.6 billion. The company has a market cap of $511.5 million as of March 2021. Dynex Capital Inc is headquartered in New York, New York.

– Chimera Investment Corp ($NYSE:CIM)

Chimera Investment Corporation is a real estate investment trust that focuses on investing in and managing a portfolio of residential mortgage assets, including agency residential mortgage-backed securities, non-agency residential mortgage-backed securities, and other mortgage-related investments. As of December 31, 2020, the company owned and managed a portfolio of approximately $32.6 billion in residential mortgage assets.

Summary

Annaly Capital Management is an investment management company that specializes in mortgage-backed securities (MBS). The company has been well-positioned to benefit when the MBS market turns. It has strong cash flow and a solid balance sheet, allowing it to take advantage of opportunities in the MBS market. Annaly’s portfolio has been diversified across multiple sectors, including residential and commercial real estate, consumer loans, and other investments. It has also taken steps to protect its portfolio from market volatility by employing hedging strategies.

In addition, Annaly’s management team has decades of experience in the MBS market, providing them with the expertise to make informed decisions and capitalize on opportunities.