Jones Research Gives Annaly Capital Management Buy Rating, Citing Attractive Agency Mortgage Basis

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Annaly Capital Management ($NYSE:NLY) is a leading mortgage real estate investment trust (REIT) that primarily invests in agency mortgage-backed securities. Annaly’s portfolio comprises a diverse range of investments, including commercial and residential mortgages, as well as other asset classes. On Monday, Jason M. Stewart of Jones Research began his coverage of Annaly Capital Management with a Buy rating, citing the company’s liquid, well-hedged portfolio, low balance sheet leverage, and efficient operational costs. He also identified the agency mortgage basis, which makes up 90% of Annaly’s total assets, as particularly attractive at present levels. Stewart believes that Annaly’s portfolio is well-positioned to benefit from a continuation of the current low interest rate environment.

He emphasized the company’s ability to hedge against rising rates, providing investors with exposure to the mortgage market without taking on additional risk. Moreover, Stewart praised Annaly’s operational efficiency, noting that its cost of operations has declined significantly over the past few years. This efficiency has allowed the company to maintain its dividend payments while still achieving attractive total returns. Going forward, Stewart believes that Annaly’s combination of liquid and well-hedged investments, coupled with its attractive agency mortgage basis, should generate strong returns for shareholders.

Market Price

On Monday, Jones Research issued a buy rating for Annaly Capital Management (ANN), citing the attractive agency mortgage basis. The stock opened at $21.4 and closed at the same price, indicating the market’s confidence in the company’s potential. Jones Research believes that the company has a good chance of outperforming its peers due to its attractive agency mortgage basis. Annaly Capital Management is a real estate investment trust (REIT) that focuses primarily on investing in agency mortgage-backed securities. The company’s agency mortgage basis provides an attractive opportunity to capitalize on the current market conditions. The company’s portfolio is well diversified across different maturities and credit qualities, allowing it to benefit from interest rate changes and other market fluctuations.

Jones Research believes that Annaly Capital Management is well positioned to capitalize on the current market conditions. The company has a strong balance sheet and is highly liquid, allowing it to take advantage of attractive opportunities as they arise. The company also has a relatively low debt-to-equity ratio, which indicates that it has the capacity to borrow money if needed. Overall, Jones Research believes that Annaly Capital Management is well positioned to take advantage of the current market conditions and recommends investors buy the stock. The company’s attractive agency mortgage basis and strong balance sheet should provide investors with good returns in the long run. Live Quote…

About the Company

Key Ratios Snapshot

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

VI Analysis

Investors looking for strong fundamentals and consistent dividends may be interested in the company ANNALY CAPITAL MANAGEMENT, as it has a high health score of 7/10 with regard to its cashflows and debt. This indicates that the company is capable of safely riding out any crisis without the risk of bankruptcy. The company is classified as a ‘cow’, meaning it has a track record of paying out consistent and sustainable dividends. When looking at the fundamentals of ANNALY CAPITAL MANAGEMENT, the VI Star Chart shows that the company is strong in cashflow, medium in asset, dividend, and profitability, but weak in growth. This reflects the long term potential of the company, and its ability to provide consistent returns. Overall, ANNALY CAPITAL MANAGEMENT is a good option for investors looking for low risk investments and consistent dividends. The company has been able to maintain a high health score when it comes to its cash flows and debt, and is able to ride out any crisis without the risk of bankruptcy. This makes it an attractive option for those looking for low risk investments with consistent returns. More…

VI 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

Investing in Annaly Capital Management can be a lucrative opportunity for investors. Annaly is a real estate investment trust (REIT) that invests in mortgage-backed securities (MBS). The company’s primary focus is on Agency mortgage-backed securities, which are guaranteed by government-sponsored entities such as Fannie Mae, Freddie Mac, and Ginnie Mae. Annaly’s attractive Agency mortgage basis provides investors with an attractive yield. The company’s portfolio is invested in Agency mortgage-backed securities, and its focus on Agency MBS helps to reduce the overall risk associated with investing in Annaly.

Additionally, Annaly’s portfolio is diversified across multiple sectors, which helps to minimize the impact of any one sector’s performance on the company’s financial performance. Annaly’s management team has a long history of success in managing mortgage-backed securities, and the company has consistently delivered strong financial results. The company’s management team has also been successful in navigating through various market cycles, including periods of volatility and low interest rates. Annaly’s strong financial performance and long-term track record of success provide investors with confidence in the company’s ability to continue to deliver positive returns. In summary, investing in Annaly Capital Management can be a great opportunity for investors. The company’s attractive Agency mortgage basis, diversified portfolio, and consistent track record of success provide investors with confidence in their investment. Additionally, Annaly’s management team has a long history of success in managing mortgage-backed securities, and the company has consistently delivered strong financial results. As such, Annaly Capital Management can be an attractive investment for investors who are looking for a reliable source of income and potential capital appreciation.