Sell Now: Weakening Fundamentals May Spark Strong Downtrend in Armour Residential REIT

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Sell Now: Weakening Fundamentals May Spark Strong Downtrend in Armour ($NYSE:ARR) Residential REIT. Armour Residential REIT is a publicly traded real estate investment trust that specializes in residential mortgage-backed securities. With the weakening fundamentals of Armour Residential REIT, it is advisable to sell now as it may lead to a steep decline in the stock price. The company’s declining dividends, coupled with increasing leverage, has caused a significant decrease in its market capitalization. The company has also seen a sharp decline in its earnings for the past few quarters, thus putting further pressure on its dividend payout. Furthermore, the company’s debt levels have risen significantly which has raised concern among investors. Moreover, the company’s liquidity position is a cause of concern as its available liquidity is only sufficient to cover short-term obligations.

This indicates that the company may not be able to meet its long-term debt obligations. Furthermore, the firm’s share price has declined significantly over the past year, which suggests that investors may be losing confidence in the company. Given the weak fundamentals of Armour Residential REIT, it is advisable to sell now and avoid a potential further decline in its stock price. It is important to keep an eye on the company’s financial performance and make sure to sell if the prospects of further weakness become apparent.

Price History

ARMOUR RESIDENTIAL REIT has experienced a slight increase in stock price, with the stock opening at $19.2 and closing at $19.5 on Thursday.

However, the company’s fundamentals are weakening, which may spark a strong downward trend in the stock price in the near future. ARMOUR RESIDENTIAL REIT has seen a decrease in net operating income, as their funds from operations have dropped significantly over the past year. This trend could continue as the company’s financial situation deteriorates, resulting in a downtrend in the stock price. With this in mind, investors should consider selling their positions in ARMOUR RESIDENTIAL REIT now, before the stock price falls further. Live Quote…

About the Company

Income Snapshot

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

Cash Flow Snapshot

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

Balance Sheet Snapshot

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

Key Ratios Snapshot

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

Analysis

GoodWhale has analyzed ARMOUR RESIDENTIAL REIT’s financials and found that it has a high health score of 7/10 with regard to cashflows and debt, indicating its capability to sustain future operations in times of crisis. Our Star Chart shows that ARMOUR RESIDENTIAL REIT is strong in asset, and weak in dividend, growth, and profitability. Based on our analysis, we classify this company as a ‘cow’, which is a type of company that has the track record of paying out consistent and sustainable dividends. This means that long-term investors, such as income-focused investors, looking for a steady return on their investments may be interested in ARMOUR RESIDENTIAL REIT. More…

Peers

The company is headquartered in Boca Raton, Florida and was founded in 2006. ARMOUR operates as a holding company that owns subsidiaries which are engaged in the business of acquiring, investing in, and managing residential mortgage-backed securities. The company competes against Chimera Investment Corp, Dynex Capital Inc, and Annaly Capital Management Inc.

– Chimera Investment Corp ($NYSE:CIM)

Chimera Investment Corporation is a real estate investment trust that primarily invests in adjustable-rate and fixed-rate residential mortgage loans, commercial mortgage loans, real estate-related securities, and other asset classes. The company has a market cap of $1.57 billion as of 2022.

– Dynex Capital Inc ($NYSE:DX)

Dynex Capital, Inc. is a publicly traded real estate investment trust. The company invests in a variety of real estate-related assets, including commercial mortgage loans, commercial mortgage-backed securities, and other real estate-related investments.

– Annaly Capital Management Inc ($NYSE:NLY)

Analysts have estimated that Annaly Capital Management Inc’s market cap would be around 10.08B as of 2022. The company’s main focus is on providing mortgage financing and servicing to the US residential and commercial real estate markets. In recent years, the company has expanded its operations into other areas such as healthcare and student housing.

Summary

Armour Residential REIT (ARMOUR) is a real estate investment trust (REIT) that focuses on residential mortgage-backed securities (RMBS) backed by the government-sponsored entities (GSEs). The company’s investment strategy is to invest primarily in fixed-rate RMBS, which are issued or guaranteed by the GSEs. Investing analysis of ARMOUR indicates that the company’s fundamentals are weakening, raising concerns over its future performance. Specifically, ARMOUR has seen a significant decline in its dividend amount and net income, and a notable increase in debt.

Additionally, the company’s risk profile has increased, with its higher leverage ratios and lower liquidity levels.