American Capital Mortgage Investment
 (MTGE)

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  • Wed, Feb. 3, 4:25 PM
    • Q4 net spread and dollar roll income of $0.52 per share vs. $0.51 in Q3. This quarter's result excludes a $0.10 net servicing loss. Dividend is $0.40.
    • End-of-year book value per share of $19.66 slips from $19.93 three months earlier. Today's close of $13.41 is a 31.8% discount to book.
    • The $0.40 dividend less the fall in book value yields positive economic return for the quarter of $0.13, or 0.6% (2.6% annualized).
    • 2.4M shares or 4.8% of the float bought back during quarter for $35.3M, or an average price of $14.64 each.
    • Since quarter's end, company has agreed to sell most of its servicing operations, and is in the process of transitioning to a servicing oversight platform for the retained MSR portfolio. This "repositioning" is expected to improve MSR operating results significantly.
    • Conference call tomorrow at 11 ET
    • Previously: American Capital Mortgage beats by $0.06 (Feb. 3)
    • MTGE -1.1% in very thin after hours action
    | Wed, Feb. 3, 4:25 PM
  • Wed, Feb. 3, 4:03 PM
    • American Capital Mortgage (NASDAQ:MTGE): Q4 EPS of $0.52 beats by $0.06.
    • Shares -1.1%.
    • Press Release
    | Wed, Feb. 3, 4:03 PM | 1 Comment
  • Tue, Feb. 2, 5:35 PM
  • Mon, Jan. 25, 3:16 PM
    • Modest declines in the major averages are masking the continued liquidation in a number of financial sectors.
    • Hotel REITs: Pebblebrook Hotel (PEB -2.4%), LaSalle Hotel (LHO -2.2%), FelCor Lodging (FCH -2.9%), DiamondRock Hospitality (DRH -3.3%)
    • Nonbank servicing: Ocwen Financial (OCN -6.9%), Walter Investment (WAC -10.5%), Nationstar Mortgage (NSM -6.7%), Altisource Portfolio (ASPS -4.6%), New Residential (NRZ -3.2%)
    • Mortgage REITs: Two Harbors (TWO -3.8%), Invesco (IVR -4.3%), American Capital Mortgage (MTGE -3.4%), Western Asset (WMC -3.7%), Apollo Residential (AMTG -3.8%), AG Mortgage (MITT -3.9%)
    • BDCs: Prospect Capital (PSEC -4%), Apollo Investment (AINV -2.2%), Medley Capital (MCC -4.1%), Gladstone Capital (GLAD -4.4%). A few in this sector are managing gains though: Main Street (MAIN +1%), TICC Capital (TICC +1.9%), Harris & Harris (TINY +1.8%)
    | Mon, Jan. 25, 3:16 PM | 78 Comments
  • Wed, Jan. 20, 10:44 AM
    • The discounts to book values across the sector have grown to such high levels that one wonders whether it just makes more sense for many of these players to liquidate the portfolios and return the money to the shareholders.
    • Sector giants Annaly Capital (NLY -4.9%) and American Capital Agency (AGNC -4.6%) are selling at 30% discounts to their most recent book value.
    • Armour Residential (ARR -8.3%), Invesco Mortgage (IVR -7%), Hatteras Financial (HTS -5%), New York Mortgage (NYMT -9.5%), Apollo Residential (AMTG -6.4%), AG Mortgage (MITT -7.2%), Anworth (ANH -6.3%), Arlington Asset (AI -8.7%), and Five Oaks (OAKS -8%) are selling at greater than 40% discounts. Two Harbors (TWO -7.5%), CYS Investments (CYS -6.2%), American Capital Mortgage (MTGE -6%), Capstead (CMO -5.9%), Dynex (DX -7.2%), Western Asset (WMC -8%), Ellington Residential (EARN -7.2%), and Orchid Island (ORC -9.6%) are all nearing 40% discounts.
    • MFA Financial (MFA -6.4%) and Chimera Investment (CIM -8.1%) are both nearing 30% discounts to book.
    • ETFs: MORL, REM, MORT, LMBS
    | Wed, Jan. 20, 10:44 AM | 242 Comments
  • Tue, Jan. 19, 11:43 AM
    • The best thing that can be said about the market reaction today, is that New Residential (NRZ -0.6%) isn't down as much as the other mortgage-related names (REM -1.8%) which continue to be mercilessly pounded.
    • PennyMac (PMT -4.5%), Ocwen (OCN -3.7%), Walter Investment (WAC -4.8%), Stonegate (SGM -3.4%), Armour (ARR -3.5%), Invesco (IVR -2.4%), New York Mortgage (NYMT -4.1%), Apollo Residential (AMTG -3.1%), AG Mortgage (MITT -3.4%), Five Oaks (OAKS -6.7%), American Capital (MTGE -2%), Two Harbors (TWO -2.2%), Chimera (CIM -3.4%).
    • Citi's Michael Kaye - who rates NRZ a Buy - says the repurchase plan makes sense given the stock trades at just 0.84x book and yields 18%. Depending on how the buyback is funded, it could add up to a couple of hundred basis points of accretion. It also sends a signal to the markets about management's belief in the stock's value. Management gave little detail on a timetable.
    • Previously: New Residential steps in with $200M repurchase plan (Jan. 19)
    | Tue, Jan. 19, 11:43 AM | 49 Comments
  • Fri, Jan. 15, 10:23 AM
    • In the midst of a market panic and with the sector trading at massive discounts to book value, it takes a pair to issue downgrades now, but that's what Wells Fargo has done, cutting Annaly Capital (NLY -2.9%), MFA Financial (MFA -4.1%), Hatteras Financial (HTS -4.5%), American Capital Mortgage (MTGE -5%), AG Mortgage (MITT -5.9%), and Two Harbors (TWO -3.4%) to Market Perform from Outperform.
    • At last check one month ago, these names were trading at discounts to NAV ranging from about 10-30%. Presumably those discounts have widened as the stock prices have crumbled further since then, and book values have likely remained stable or even risen.
    • For the last year, mREITs have had to contend with the possibility of higher interest rates across the board. Now they have to deal with a sharply flatter yield curve as the 10-year Treasury yield has fallen about 30 basis points since the Fed hiked last month.
    • Good news? FRBNY President Bill Dudley is on the tape this morning suggesting negative interest rates as a possibility if the economy sours. That should help mREIT funding costs.
    • ETFs: MORL, REM, MORT, LMBS
    | Fri, Jan. 15, 10:23 AM | 58 Comments
  • Dec. 23, 2015, 12:48 PM
    • A check of discounts/premiums to book for many of the names in the mortgage REIT sector finds discounts have mostly widened significantly over the past year.
    • Among the notable items: Just two names sold at premiums to book a year ago. New York Mortgage (NASDAQ:NYMT) trust at 11.6% and Capstead Mortgage (NYSE:CMO) at 1.3%. While book value has barely budged at NYMT over the past year, the price investors are willing to pay has - it now trades at a 17.6% discount. Capstead has shed about 5% of its book value, but now trades at a 22.66% discount.
    • Sector giants Annaly Capital (NYSE:NLY) and American Capital Agency (NASDAQ:AGNC) still trade at sizable discounts to book, with AGNC's widening to 20.65% from 12.7% a year ago.
    • Chimera Investment (NYSE:CIM) trades at just a 4.12% discount to book - that's less than its 4.9% discount a year ago. Book value however, slid 12.7% over the last 52 weeks.
    • Others covered: ARR, TWO, IVR, CYS, HTS, MTGE, AMTG, ANH, MITT, DX, WMC, MFA, EARN, AI, CHMI, ORC, OAKS, ZFC
    • ETFs: MORL, REM, MORT, LMBS
    | Dec. 23, 2015, 12:48 PM | 21 Comments
  • Dec. 18, 2015, 4:05 PM
    • American Capital Mortgage (NASDAQ:MTGE) declares $0.40/share quarterly dividend, in line with previous.
    • Forward yield 11.2%
    • Payable Jan. 27; for shareholders of record Dec. 31; ex-div Dec. 29.
    • The Company also announced today that in the fourth quarter of 2015, it made open market purchases of approximately 2.4M shares.
    | Dec. 18, 2015, 4:05 PM | 2 Comments
  • Dec. 14, 2015, 11:32 AM
    • Before it was fears about interest rates - first, with long yields too low and thus slimming margins, and then the Fed's promise to hike short rates (and slimming margins even more). Now we can toss credit worries into the mix, and the action's plenty panicky there - junk bonds are off sharply again today and two more funds have been forced to gate withdrawals and/or liquidate.
    • Once pure-play agency REITs like Annaly Capital (NLY -2%) and American Capital Mortgage (AGNC -1.7%) now have some credit exposure.
    • Others are more credit-exposed: Chimera Investment (CIM -3.5%), Invesco (IVR -2.7%), American Capital Mortgage (MTGE -2.8%), MFA Financial (MFA -2.8%), New York Mortgage (NYMT -4.7%), Western Asset (WMC -3.6%), Anworth (ANH -2.9%), Arlington Asset (AI -3.6%), Javelin (JMI -4.8%), Orchid Island (ORC -7.4%), Five Oaks (OAKS -12.3%)
    • Just to pick a few out, Annaly Capital sells at a 24.4% discount to Sept. 30 book value; American Capital Agency sells at a 26.3% discount; Invesco at a 30% discount; MFA Fnancial at 15.4% discount; New York Mortgage at a 25% discount (this sold at a premium to book as recently as early fall).
    • ETFs: MORL, REM, MORT, LMBS
    | Dec. 14, 2015, 11:32 AM | 65 Comments
  • Oct. 28, 2015, 4:09 PM
    • Q3 spread and dollar roll income of $0.51 per share vs. $0.52 in Q2. Both results exclude $0.08 per share in net servicing loss. Dividend is $0.40.
    • Book value per share of $19.93 slips from $20.70 in Q2. Today's close of $14.64 is a 27% discount to book value. Adding the decline in book value to the dividend yields an economic loss of $0.37 per share or 1.8% of book (7.1% annualized).
    • The $5.5B portfolio includes $3.4B in agency paper, $500M net long TBA mortgage position, $1.5B in non-agency securities, and $100M in MSRs.
    • As with the other mortgage REITs which have reported, spread-widening across asset classes was a big part of the drop in book value.
    • 1.2M shares repurchased during Q, or about 2.3% of the float, at a cost of $18.1M (average price of $15.29).
    • Conference call tomorrow at 11 ET
    • Previously: American Capital Mortgage reports Q3 results (Oct. 28)
    • MTGE -0.8% after hours
    | Oct. 28, 2015, 4:09 PM
  • Oct. 28, 2015, 4:04 PM
    • American Capital Mortgage (NASDAQ:MTGE): Q3 EPS of $0.51
    • NII of $32.23M (-13.5% Y/Y)
    | Oct. 28, 2015, 4:04 PM
  • Oct. 27, 2015, 5:35 PM
  • Oct. 27, 2015, 3:34 PM
    | Oct. 27, 2015, 3:34 PM | 11 Comments
  • Sep. 18, 2015, 11:19 AM
    • Annaly Capital (NLY +0.9%), Anworth Mortgage (ANH +0.6%), Apollo Residential (AMTG +0.1%) and ZAIS Financial (ZFC +0.8%) last night added themselves to the smallish list of mortgage REITs maintaining dividends this quarter.
    • Those announcing dividend cuts after the bell were American Capital Mortgage (MTGE -1.2%) and Arlington Asset (AI -0.5%).
    • The sector as a whole continues to move higher following the FOMC yesterday afternoon, but hit particularly hard today is CYS Investment (CYS -3.1%). The move is especially notable as CEO Kevin Grant has been consistently skeptical about fears of higher rates.
    • ETFs: MORL, REM, MORT, LMBS
    | Sep. 18, 2015, 11:19 AM | 31 Comments
  • Sep. 17, 2015, 4:06 PM
    • American Capital Mortgage (NASDAQ:MTGE) declares $0.40/share quarterly dividend, -20% decrease from prior dividend of $0.50.
    • Forward yield 10.28%
    • Payable Oct. 27; for shareholders of record Sept. 30; ex-div Sept. 28.
    | Sep. 17, 2015, 4:06 PM
Company Description
American Capital Mortgage Investment Corp operates as a REIT. It invests in, finance and manage a leveraged portfolio of mortgage-related investment, non-agency mortgage investments and other mortgage-related investments.
Sector: Financial
Country: United States