Mortgage-based REIT Annaly Capital Management, Inc. (
) on Friday caught some tepid commentary from analysts at Compass
The firm said it cut its rating from "Buy" to "Neutral" with a
$17 price target. That target suggests zero upside to the stock's
Thursday closing price of $16.89.
A Compass Point analyst commented, "Since upgrading our rating
on the shares of NLY to Buy on April 9, 2012, NLY has achieved a
total return of 8.4% compared to a total return of -3.4% for the
S&P Index and -7.8% for the BKX. Over the near term, we expect
an increase in prepayment speeds (both through increased regular
way refi activity and an increasingly effective HARP 2.0 program)
to have a negative impact on the net interest margin of NLY's
portfolio. Over the intermediate term, however, many of the factors
that have underpinned our positive thesis on the sector remain in
place. We expect that the relatively steep yield curve, which has
been anchored by the Fed, will remain in place through 2013."
Annaly shares posted small losses in premarket trading
The Bottom Line
Shares of Annaly Capital Management (
) have a 13.03% dividend yield, based on last night's closing stock
price of $16.89. The stock has technical support in the $15.50
price area. If the shares can firm up, we see overhead resistance
around the $17.50 price level.
Annaly Capital Management, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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