4 Sell-Rated Dividend Stocks: OAK, MTGE, WLT, ECA
American Capital Mortgage Investment (NASDAQ: MTGE) shares currently have a dividend yield of 18.80%. American Capital Mortgage Investment Corp. operates as a real estate investment trust (REIT) in the United States. The company has a P/E ratio of 2.62. The average volume for American Capital Mortgage Investment has been 1,521,400 shares per day over the past 30 days. American Capital Mortgage Investment has a market cap of $1.0 billion and is part of the real estate industry. Shares are down 27.7% year to date as of the close of trading on Wednesday. TheStreet Ratings rates American Capital Mortgage Investment as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share. Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 224.6% when compared to the same quarter one year ago, falling from $21.32 million to -$26.57 million.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 27.56%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 130.76% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- AMERICAN CAPITAL MTG INV CP has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, AMERICAN CAPITAL MTG INV CP increased its bottom line by earning $8.40 versus $1.72 in the prior year. For the next year, the market is expecting a contraction of 62.0% in earnings ($3.19 versus $8.40).
- MTGE, with its very weak revenue results, has greatly underperformed against the industry average of 12.3%. Since the same quarter one year prior, revenues plummeted by 54.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for AMERICAN CAPITAL MTG INV CP is rather high; currently it is at 53.22%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, MTGE's net profit margin of -199.79% significantly underperformed when compared to the industry average.
- You can view the full American Capital Mortgage Investment Ratings Report.
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