Dynex Capital Expands ATM Program by 80M Shares, Total Capacity Hits 301.3M
DX is trading near its 52-week low of $11.825 (7.4% above the low).
Summary
Dynex Capital amended its at-the-market offering agreement, adding 80 million shares to bring total available-for-sale capacity to 301.3 million shares. This follows the Q2 report a week ago that showed $391 million in equity raised and a 42% portfolio expansion, and the shareholder approval in May to double authorized shares to 720 million. The increase signals continued heavy reliance on equity issuance to fund aggressive Agency MBS purchases, which dilutes existing shareholders. With the stock trading at $12.70, near book value of $12.90, the ATM program allows the company to raise capital opportunistically but adds overhang. The filing comes just a day after the Q2 10-Q, suggesting management is moving quickly to secure additional equity capacity.
At the time of this announcement, DX was trading at $12.70 on NYSE in the Finance sector, with a market capitalization of approximately $2.7B. The 52-week trading range was $11.83 to $14.93. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.