American Capital Mortgage Investment (MTGE) - NASDAQ
  • Mon, May 23, 8:58 AM
    • The company will pay American Capital $562M in cash to purchase American Capital Mortgage Management, LLC, the external manager of both AGNC and MTGE.
    • The deal is expected to close in Q3.
    • American Capital Management paid $27M in fees to ACMM in Q1, or $108M on an annualized basis. Internalization is expected to save about $80M per year.
    • Alongside the deal, five members of the AGNC board resigned, and Prue Larocca has been elected board chair.
    • The investment team, led by Gary Kain, remains intact.
    • Source: Press Release
    • Shares +3.1% premarket
    • Previously: Ares Capital buying American Capital; American Capital Agency internalizing manager (May 23)
    | Mon, May 23, 8:58 AM | 26 Comments
  • Wed, Apr. 27, 4:11 PM
    • American Capital Mortgage (NASDAQ:MTGE): Q1 EPS of $0.44 misses by $0.02.
    • Net interest income of $27.49M (-26.6% Y/Y)
    • Press Release
    | Wed, Apr. 27, 4:11 PM
  • Wed, Apr. 27, 4:11 PM
    • Q1 net spread and dollar roll income of $0.44 per share vs. $0.52 earned in Q4. Dividend is $0.40.
    • Book value per share of $19.03 falls from $19.66 a quarter earlier. Today's close of $14.90 is a 21.7% discount to book.
    • Economic loss of 1.2% for the quarter, or 4.7% annualized.
    • 2M shares (4.2% of the float) bought back during quarter at average price of $13.21 each - brings leverage level slightly higher to 4.6x.
    • Conference call tomorrow at 11 ET
    • MTGE flat after hours
    | Wed, Apr. 27, 4:11 PM
  • Tue, Apr. 26, 5:35 PM
  • Mon, Apr. 11, 12:49 PM
    • Annaly Capital (NLY -1.1%) is lower following its agreement to purchase Hatteras Financial (HTS +10.2%) for $1.5B in cash and stock. The other sector giant, American Capital Agency (AGNC -0.1%) is in the red as well - makes sense considering these two players are acquirers (or at least potentially so), not targets.
    • With the deal, Annaly is adding a portfolio of variable rate mortgages to its books for about 85% of book value.
    • The rest of the sector has market caps of about $2.5B down to sub-$250M, making them digestible as well.
    • CYS Investments (CYS +1.3%), American Capital Mortgage (MTGE +1.9%), New York Mortgage (NYMT +2.5%), Anworth Mortgage (ANH +1.2%), Dynex Capital (DX +0.9%), AG Mortgage (MITT +1.2%), Ellington Residential (EARN +1.2%), PennyMac (PMT +1%), Five Oaks (OAKS +1.6%).
    • ETFs: MORL, REM, MORT
    • Now read: Annaly: Boom Goes The Dynamite (April 11)
    | Mon, Apr. 11, 12:49 PM | 10 Comments
  • Thu, Mar. 17, 5:44 PM
    • Gary Kain, formerly the chief investment officer of American Capital (NASDAQ:ACAS) managed funds American Capital Agency (NASDAQ:AGNC) and American Capital Mortgage (NASDAQ:MTGE). In addition, director Al Puryear has been named non-executive chairman for both AGNC and MTGE. (PRs: AGNC, MTGE)
    • In each case, Kain and Puryear are replacing ACAS chairman/CEO Malon Wilkus, who is also leaving AGNC and MTGE's boards. Wilkus, who is maintaining his position at ACAS, provides a similar quote for each company's PR. From the MTGE PR: "Now it's come time for me to hand over the CEO position to Gary Kain. Gary has headed the company's operations and outstanding investing activities since its founding and there is nobody better qualified than Gary to lead the company into the future and to contribute to the company's Board."
    • MTGE has also declared its regular $0.40/share quarterly dividend (11% yield), and disclosed it has bought back 2M shares (4.2% of outstanding shares as of Dec. 31) in Q1 at an average price of $13.19. MTGE adds it has bought back 13.7M shares since Q4 2012 at a cost of $244.9M.
    • The management shakeup comes after activist Elliott Management took a 10%+ stake in ACAS.
    | Thu, Mar. 17, 5:44 PM | 8 Comments
  • Thu, Mar. 17, 5:02 PM
    • American Capital Mortgage (NASDAQ:MTGE) declares $0.40/share quarterly dividend, in line with previous.
    • Forward yield 11.07%
    • Payable April 27; for shareholders of record March 31; ex-div March 29.
    | Thu, Mar. 17, 5:02 PM | 1 Comment
  • 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 | 249 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
Company Description
American Capital Mortgage Investment Corp. is a mortgage real estate investment trust that invests in and manages a leveraged portfolio of agency mortgage investments, non-agency mortgage investments and other mortgage-related investments. Its investment objective is to provide returns to its... More
Sector: Financial
Industry: REIT - Diversified
Country: United States