Last Updated: 08 Nov 2024
Executive Summary
Annaly Capital Management Inc. (NLY) is a diversified capital manager that invests in and finances residential and commercial assets. With a market capitalization of $10.9 billion, NLY is a leading player in the real estate investment trust (REIT) industry. The company has a strong track record of dividend payments, with a current yield of 0.137%. However, NLY's recent financial performance has been mixed, with a decline in quarterly earnings and revenue growth year-over-year.
Company Overview
NLY is headquartered in New York City and has been in operation since 1997. The company's investment portfolio primarily consists of agency mortgage-backed securities (MBS) and residential whole loans. NLY also provides financing to mortgage originators and other financial institutions.
Fundamental Analysis
Revenue: NLY's revenue for the trailing twelve months (TTM) was $369.4 million, a decrease of 0.766% year-over-year.
Earnings: NLY reported a diluted EPS of -$0.08 for the TTM, a significant decline from the previous year.
Profitability: NLY's profit margin is 0.314%, while its operating margin is 0.573%.
Return on Equity: NLY's return on equity (ROE) is 0.0127%, indicating a low level of profitability.
Debt: NLY has a significant amount of debt, with a debt-to-equity ratio of 1.3.
Technical Analysis
Price Action: NLY's stock price has been trading within a range of $14.7 to $20.45 over the past 52 weeks.
Moving Averages: The 50-day moving average is currently at $19.93, while the 200-day moving average is at $19.6.
Relative Strength Index (RSI): NLY's RSI is currently at 45, indicating that the stock is in a neutral zone.
Short Term Outlook
In the short term, NLY's stock price is likely to remain range-bound between $19.47 and $20.45. The company's recent financial performance has been weak, and there are concerns about the impact of rising interest rates on its business. However, NLY's strong dividend yield may continue to attract income-oriented investors.
Long Term Outlook
In the long term, NLY's prospects are tied to the performance of the real estate market. If the housing market recovers, NLY is likely to benefit from increased demand for its products and services. However, if the housing market continues to decline, NLY could face challenges in maintaining its profitability.
Analyst Recommendations
Analysts have mixed views on NLY's stock. Two analysts rate it a "Strong Buy," five rate it a "Buy," six rate it a "Hold," and none rate it a "Sell" or "Strong Sell." The average analyst target price is $21.6, which represents a potential upside of 11.0% from the current price of $19.47.
