American Capital Agency Corp.
), a real estate investment trust (REIT), recently announced
a public offering of 32 million shares to increase its
liquidity. To cover any over-allotments, American Capital also
plans to offer a 30-day option to the underwriters to purchase an
additional 4.8 million shares.
The net proceeds from this offering will be utilized to acquire
additional agency securities in accordance with the prevailing
market conditions and for other general corporate purposes.
During the first quarter of 2012, the company raised $2.4
billion of net equity proceeds, which included $2.1 billion from a
secondary offering, $142 million in a controlled equity offering,
and $167 million from preferred stock offering. As of March 31,
2012, American Capital's cash position stood at $2.1 billion.
The company has been paying a steady dividend over the years.
American Capital Agency paid a dividend of $1.25 per share in first
quarter 2012, which equates to a total of $1.5 billion in dividends
or $20.11 per share since its initial public offering in May
American Capital focuses on investment in mortgage pass-through
securities and collateralized mortgage obligations.The company
purchases single-family residential pass-through securities, which
are interests in pooled loans of principal and interest including
pre-paid principal that are made to the holders of the notes.
Collateralized mortgage obligations consist of multiple classes
with payments of principal and interest being made to note holders
based on the maturity date of the class of security.
American Capital currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating. We are also maintaining
our long-term Outperform recommendation on the stock. One of its
Financial, Inc (
holds a Zacks #2 Rank, which translates into a short-term Buy
AMER CAP AGENCY (AGNC): Free Stock Analysis
MFA FINANCIAL (MFA): Free Stock Analysis Report
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