Agency MBS demand-supply - Elevated mortgage rates reduced projected Agency MBS supply while demand remained strong, supporting tighter spreads and portfolio performance, per CEO Peter Federico
Macro volatility - Geopolitical tensions and supply chain disruptions led to rising Treasury yields and a shift in monetary policy expectations, impacting market conditions, per CEO Peter Federico
Modest income decline - Net spread and dollar roll income per share fell $0.02 from the prior quarter due to slightly lower asset yields and net interest spread, per CFO Bernice Bell
Outlook for Agency MBS
Company expects favorable supply-demand dynamics to support Agency MBS performance near term
Q2 income and book value
U.S. mortgage REIT's Q2 comprehensive income per share was $0.52, up from the prior quarter
Tangible net book value per share rose 2.4% sequentially to $8.58
Net spread and dollar roll income per share fell slightly to $0.40
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialized REITs peer group is "buy"
Wall Street's median 12-month price target for AGNC Investment Corp is $11.75, about 4.7% above its July 17 closing price of $11.22
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago
AGNC•
