Capstead Mortgage Corporation (CMO) - NYSE
  • Thu, Jul. 14, 6:42 PM
    • Dallas-based Capstead Mortgage (NYSE:CMO) has named Phillip Reinsch as its new president and chief executive officer, replacing Andrew Jacobs.
    • Jacobs has resigned those two positions and his board seat after 28 years with the company.
    • Reinsch has been executive VP, chief financial officer and secretary since 2006, and was named the company's treasurer in 2015. Prior to 1993, when he joined Capstead, Reinsch worked for Ernst & Young.
    • Shares of CMO are up 13.5% YTD.
    | Thu, Jul. 14, 6:42 PM
  • Tue, Jul. 12, 11:38 AM
    • Plunging interest rates in June led to an 8.5% pickup in 30-year and 15-year fixed agency MBS prepayment speeds, and 14% for ARMs, according to the latest data.
    • KBW's Bose George expects prepayments to stay elevated over the next few months, but with mREITs already trading at an average 0.9x book value, the pressure on earnings may already be priced in.
    • Picking out a couple of names, Capstead Mortgage (CMO +0.6%) has meaningful prepay risk, says George, while risk is more contained at MFA Financial (MFA -0.1%).
    • ETFs: MORL, REM, MORT
    • Meanwhile, pain for the mortgage REITs in this case means gain for companies that might benefit from the fast pace of mortgage production. Title insurers like First American Financial (FAF +0.7%) and Fidelity National (FNFV +2.1%) come to mind.
    | Tue, Jul. 12, 11:38 AM | 10 Comments
  • Wed, Jun. 15, 3:20 PM
    • Fed Funds futures markets are pricing in just a 50% chance of a rate hike in 2016 after the FOMC stayed on hold in June and cut its expectations for future moves higher in interest rates.
    • The mREITs (REM +0.7%) are up just modestly, but all higher now than they were prior to the FOMC news.
    • Annaly Capital (NLY +0.6%), American Capital Agency (AGNC +0.9%), Armour (ARR +1.4%), CYS Investments (CYS +1%), New York Mortgage (NYMT +1.4%), Capstead Mortgage (CMO +1.1%).
    • ETFs: MORL, REM, MORT
    | Wed, Jun. 15, 3:20 PM | 12 Comments
  • Thu, Jun. 9, 6:53 AM
    • Capstead Mortgage (NYSE:CMO) declares $0.23/share quarterly dividend, -11.5% decrease from prior dividend of $0.26.
    • Forward yield 9.33%
    • Payable July 20; for shareholders of record June 30; ex-div June 28.
    | Thu, Jun. 9, 6:53 AM | 3 Comments
  • Wed, May 18, 2:25 PM
    • Having repriced over the past few months for a rates lower-for-longer environment, mREITs (REM -1.6%) may have to reprice again as the FOMC minutes more or less signal the central bank's intention to hike rates in June.
    • Yield-starved names like banks, insurers, and online brokers are soaring, but income producers like Annaly Capital (NLY -2.7%), American Capital Mortgage (AGNC -2.5%), Armour (ARR -3.1%), CYS Investments (CYS -3.4%), Capstead (CMO -2%), Western Asset (WMC -2.3%), Anworth (ANH -2.3%), and Ellington Residential (EARN -2.4%) are going the opposite way.
    • ETFs: MORL, REM, MORT
    | Wed, May 18, 2:25 PM | 107 Comments
  • Wed, May 11, 9:35 AM
    • Capstead Mortgage (CMO +1.5%) is boosted to Outperform from Market Perform at Wells Fargo, and Invesco Mortgage (IVR +2%) to Market Perform from Underperform.
    • Capstead Mortgage recently reported a decent quarter, but the more credit-focused Invesco, not so much.
    | Wed, May 11, 9:35 AM | 1 Comment
  • Wed, Apr. 27, 4:42 PM
    • Q1 net income of $27.4M or $0.25 per share vs. $28.4M and $0.26 in Q4. Dividend is $0.26.
    • Book value per share of $11.25 slips from $11.42. Today's close of $9.77 is a 13.1% discount to book.
    • Positive economic return of $0.09 for the quarter, or 3.15% annualized.
    • FInancing spreads on the portfolio of 90 basis points unchanged from Q4.
    • No shares were repurchased under the $100M buyback program authorized last quarter.
    • Management expects a rise in prepayments this spring, and subsequent downward pressure on margins.
    • Conference call tomorrow at 9 ET
    • Previously: Capstead Mortgage EPS in-line, beats on revenue (April 27)
    • CMO flat after hours
    | Wed, Apr. 27, 4:42 PM | 1 Comment
  • Wed, Apr. 27, 4:32 PM
    • Capstead Mortgage (NYSE:CMO): Q1 EPS of $0.25 in-line.
    • Revenue of $59.69M (+1.6% Y/Y) beats by $4.69M.
    • Press Release
    | Wed, Apr. 27, 4:32 PM | 1 Comment
  • Tue, Apr. 26, 5:35 PM
  • Mon, Apr. 11, 9:53 AM
    • Continued sector consolidation is on the minds of mREIT investors today, but Wells Fargo - updating its Q1 book value estimates - downgrades Apollo Commercial (ARI +0.6%), Western Asset Mortgage (WMC +0.2%), Capstead Mortgage (CMO), MFA Financial (MFA +0.1%), and Invesco Mortgage (IVR +0.6%) all to Underperform from Market Perform.
    • Now read: Mortgage REIT M&A goes big time as Annaly buys Hatteras (April 11)
    | Mon, Apr. 11, 9:53 AM | 25 Comments
  • Wed, Mar. 16, 2:32 PM
    | Wed, Mar. 16, 2:32 PM | 36 Comments
  • Thu, Mar. 10, 7:55 AM
    • Capstead Mortgage (NYSE:CMO) declares $0.26/share quarterly dividend, in line with previous.
    • Forward yield 10.79%
    • Payable April 20; for shareholders of record March 31; ex-div March 29.
    | Thu, Mar. 10, 7:55 AM
  • Fri, Feb. 26, 10:07 AM
    • The mREITs (REM +1.3%) are higher across the board after Apollo Residential Mortgage (AMTG +31.3%) agrees to a sale at a hefty premium to last night's close, but still at a discount to book value.
    • The entire sector is trading at sizable discounts to book value, with some names at massive discounts. For its part, Apollo Residential yesterday could be purchased for about 60% of its end-of-year book value. And the assets on the books of these companies tend to be highly liquid and easily valued.
    • Running an mREIT may not be a terribly efficient exercise at the small market caps most of the sector sports. The companies depend on being able to issue stock with which to fund growth, but can't do so (without being wildly dilutive) when the shares are trading at such wide discounts.
    • Sector giants Annaly Capital (NLY +0.6%) and American Capital Agency (AGNC +1.2%) have market caps above $6B, and Two Harbors (TWO +0.8%), Chimera (CIM +1.1%), CYS Investments (CYS +1%), Invesco (IVR +3.5%), Hatteras (HTS +1.2%), MFA Financial (MFA +1%), and Capstead (CMO +1%) are all near or well over $1B.
    • Players in Apollo's league (sub-$500M market cap) include New York Mortgage (NYMT +1%), Western Asset (WMC +0.6%), Anworth (ANH +1.3%), Dynex (DX +1.4%), Arlington Asset (AI +4.6%), AG Mortgage (MITT +8.7%), The Ellingtons (EFC +1.9%), (EARN +1.1%), Javelin (JMI +2.8%), Orchid Island (ORC +1.5%), Five Oaks (OAKS +0.7%), ZAIS Financial (ZFC +1.3%)
    | Fri, Feb. 26, 10:07 AM | 32 Comments
  • Wed, Feb. 3, 3:01 PM
    • Today's gains are being led by Arlington Asset (AI +7.3%) (not a REIT, but in the business) after it posted its first quarterly increase in book value in six quarters last night.
    • American Capital Agency (AGNC +1.7%) reported earlier this week, and Nomura's Brock Vandervliet notes three positives from yesterday's earnings call (transcript): 1) More buybacks are coming; 2) Green shoots are apparent in the MBS market; 3) Book value should remain stable from here (it rose a bit in the year's final month, though dipped for the quarter).
    • He does slightly adjust downward his earnings estimates - by a penny in Q1 to $0.54 per share, and by two cents for the full year. He expects the $0.60 dividend is safe through H1, but there is some risk there.
    • Annaly (NLY +0.7%), Two Harbors (TWO +2.9%), CYS (CYS +2.6%), Hatteras (HTS +1.9%), Capstead (CMO +2.2%), Dynex (DX +2.2%)
    • ETFs: MORL, REM, MORT, LMBS
    • Previously: Arlington Asset posts Q4 book value gain (Feb. 2)
    • Previously: American Capital Agency higher post-earnings (Feb. 2)
    | Wed, Feb. 3, 3:01 PM | 22 Comments
  • Thu, Jan. 28, 9:55 AM
    • The quarter didn't really impress, but the stock's trading at a near-30% discount to book value, so a lot of bad news has been priced in. Thus buybacks offer a pretty nice ROI, and management last night launched a whopper - $100M would be enough to repurchase more than 12% of the float at yesterday's closing price.
    • CMO +8.8% to $9.04.
    • Previously: Capstead Mortgage earns dividend, but book value drops (Jan. 27)
    | Thu, Jan. 28, 9:55 AM | 3 Comments
  • Wed, Jan. 27, 4:44 PM
    • Q4 net income of $28.4M or $0.26 per share vs. $21.1M and $0.18 in Q3. The dividend is $0.26.
    • Book value of $11.42 fell $0.54 or 4.5% from Q3. Today's close of $8.31 is a 27.2% discount to book. Subtracting the decline in book value from the dividend yields a negative return of $0.28 or about 2.3% for the quarter.
    • Financing spreads on the portfolio averaged 0.90%, up 16 basis points for the quarter, mostly thanks to lower prepayment speeds - CPR of 19.62% fell from 23.21%.
    • The board authorizes a $100M buyback. At today's closing price, it would be enough to buy back more than 12M shares, or more than 12% of the float.
    • In response to new FHLB borrowing rules, the company has begun cutting exposure to FHLB and will continue to do so throughout year.
    • Conference call tomorrow at 9 ET
    • Previously: Capstead Mortgage beats by $0.02, beats on revenue (Jan. 27)
    • CMO flat after hours
    | Wed, Jan. 27, 4:44 PM | 3 Comments
Company Description
Capstead Mortgage Corp. operates as a self-managed real estate investment trust. The company invests in a leveraged portfolio of residential mortgage pass-through securities consisting of adjustable-rate mortgage (ARM) securities issued and guaranteed by government-sponsored enterprises, or by... More
Sector: Financial
Industry: Mortgage Investment
Country: United States