AGNC Posts $1.36B Third-Quarter Loss as Book Value Pressure Mounts
AGNC is trading near its 52-week low of $8.39 (0.5% above the low).
Summary
AGNC swung to a $1.36 billion comprehensive loss in the third quarter, a sharp reversal from the $0.52 per share comprehensive income and 6.7% economic return it reported for Q2. The quarter's economic return was -12.7% and tangible net book value per share fell $1.45, or 16.9%, to $7.13 from $8.58, with the loss per share at $1.17. The loss lands with the stock already trading near its 52-week low of $8.39, so the market has been pricing in deterioration in the agency MBS portfolio. For a leveraged mortgage REIT, a loss of this size points to mark-to-market hits on the portfolio and likely erosion of tangible book value, the metric that drives the shares. The company has been leaning on its $2 billion at-the-market program for capital, issuing 97.6 million shares for $992 million in net proceeds, and continued dilution into a declining book would compound the damage.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — AGNC's Q3 tangible net book value fell $1.45, or 16.9%, to $7.13 per share from $8.58, and it issued 97.6 million shares via ATM for $992 million net proceeds.
At the time of this announcement, AGNC was trading at $8.44 on NASDAQ in the Finance sector, with a market capitalization of approximately $10B. The 52-week trading range was $8.39 to $12.19. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.