CAPSTEAD MTG CO/SH (NYSE:CMO) Lifted to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of CAPSTEAD MTG CO/SH (NYSE:CMO) from a hold rating to a buy rating in a report released on Tuesday morning, Zacks.com reports. They currently have $6.25 target price on the real estate investment trust’s stock.

According to Zacks, “Capstead Mortgage Corporation, formed in 1985 and based in Dallas, Texas, is a self-managed real estate investment trust for federal income tax purposes. Capstead’s core investment strategy is managing a leveraged portfolio of residential mortgage pass-through securities consisting almost exclusively of ARM securities issued and guaranteed by government-sponsored entities, either Fannie Mae or Freddie Mac, or by an agency of the federal government, Ginnie Mae. Agency-guaranteed residential mortgage securities carry an implied AAA credit rating with limited, if any, credit risk. “

Several other research analysts have also recently commented on CMO. JMP Securities upgraded shares of CAPSTEAD MTG CO/SH from a market perform rating to an outperform rating and set a $6.00 price target for the company in a report on Monday, March 30th. ValuEngine downgraded shares of CAPSTEAD MTG CO/SH from a hold rating to a sell rating in a research report on Tuesday, March 3rd. Finally, Bank of America upgraded shares of CAPSTEAD MTG CO/SH from a neutral rating to a buy rating in a research report on Tuesday, April 28th. One investment analyst has rated the stock with a sell rating and three have issued a buy rating to the company’s stock. The stock currently has a consensus rating of Buy and an average target price of $6.13.

NYSE CMO opened at $5.50 on Tuesday. The company has a quick ratio of 35.46, a current ratio of 35.46 and a debt-to-equity ratio of 14.30. CAPSTEAD MTG CO/SH has a 52 week low of $1.97 and a 52 week high of $9.25. The stock has a market capitalization of $530.17 million, a PE ratio of 10.19 and a beta of 1.32. The firm has a 50 day moving average of $5.33 and a two-hundred day moving average of $6.28.

CAPSTEAD MTG CO/SH (NYSE:CMO) last posted its quarterly earnings results on Wednesday, April 29th. The real estate investment trust reported $0.16 EPS for the quarter, topping the consensus estimate of $0.14 by $0.02. CAPSTEAD MTG CO/SH had a negative net margin of 75.31% and a positive return on equity of 9.11%. The company had revenue of $69.63 million during the quarter. On average, equities research analysts expect that CAPSTEAD MTG CO/SH will post 0.61 earnings per share for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Monday, July 20th. Stockholders of record on Tuesday, June 30th will be given a dividend of $0.15 per share. The ex-dividend date is Monday, June 29th. This represents a $0.60 annualized dividend and a dividend yield of 10.91%. CAPSTEAD MTG CO/SH’s dividend payout ratio is presently 120.00%.

In other CAPSTEAD MTG CO/SH news, CFO Lance Phillips purchased 10,000 shares of CAPSTEAD MTG CO/SH stock in a transaction that occurred on Friday, May 1st. The stock was purchased at an average price of $4.91 per share, for a total transaction of $49,100.00. Also, CEO Phillip A. Reinsch purchased 20,000 shares of CAPSTEAD MTG CO/SH stock in a transaction that occurred on Tuesday, May 5th. The stock was acquired at an average price of $4.82 per share, with a total value of $96,400.00. Insiders have bought a total of 55,000 shares of company stock valued at $266,000 in the last 90 days. Insiders own 1.90% of the company’s stock.

A number of hedge funds have recently added to or reduced their stakes in the stock. State Street Corp raised its position in CAPSTEAD MTG CO/SH by 3.0% during the 1st quarter. State Street Corp now owns 3,361,600 shares of the real estate investment trust’s stock worth $14,616,000 after buying an additional 98,712 shares during the last quarter. Acadian Asset Management LLC raised its position in CAPSTEAD MTG CO/SH by 31.2% during the 1st quarter. Acadian Asset Management LLC now owns 2,965,985 shares of the real estate investment trust’s stock worth $12,460,000 after buying an additional 705,245 shares during the last quarter. Norges Bank purchased a new position in CAPSTEAD MTG CO/SH during the 4th quarter worth $11,104,000. Geode Capital Management LLC raised its position in CAPSTEAD MTG CO/SH by 7.4% during the 1st quarter. Geode Capital Management LLC now owns 1,330,595 shares of the real estate investment trust’s stock worth $5,588,000 after buying an additional 91,704 shares during the last quarter. Finally, FMR LLC raised its position in CAPSTEAD MTG CO/SH by 53,879,950.0% during the 4th quarter. FMR LLC now owns 1,077,601 shares of the real estate investment trust’s stock worth $8,535,000 after buying an additional 1,077,599 shares during the last quarter. Hedge funds and other institutional investors own 83.08% of the company’s stock.

About CAPSTEAD MTG CO/SH

Capstead Mortgage Corporation operates as a real estate investment trust (REIT) in the United States. It invests in a portfolio of residential mortgage pass-through securities primarily consisting of short-duration adjustable-rate mortgage securities issued and guaranteed by government-sponsored enterprises, or by an agency of the federal government.

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