American Capital Mortgage Investment (NASDAQ: MTGE) shares currently have a dividend yield of 14.50%. American Capital Mortgage Investment Corp. operates as a real estate investment trust (REIT) in the United States. The average volume for American Capital Mortgage Investment has been 776,800 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 18% year to date as of the close of trading on Thursday. TheStreet Ratings rates American Capital Mortgage Investment as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, deteriorating net income, disappointing return on equity and feeble growth in its earnings per share. Highlights from the ratings report include:
- The share price of AMERICAN CAPITAL MTG INV CP has not done very well: it is down 18.13% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- 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 90.6% when compared to the same quarter one year ago, falling from $146.24 million to $13.70 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, AMERICAN CAPITAL MTG INV CP's return on equity significantly trails that of both the industry average and the S&P 500.
- AMERICAN CAPITAL MTG INV CP has experienced 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 62.5% in earnings ($3.15 versus $8.40).
- MTGE, with its very weak revenue results, has greatly underperformed against the industry average of 8.3%. Since the same quarter one year prior, revenues plummeted by 56.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full American Capital Mortgage Investment Ratings Report.
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