What To Sell: 3 Sell-Rated Dividend Stocks ARP, ANH, STB
Anworth Mortgage Asset Corporation (NYSE: ANH) shares currently have a dividend yield of 7.40%. Anworth Mortgage Asset Corporation operates as a real estate investment trust in the United States. The company primarily invests in the United States agency mortgage-backed securities, which are securities representing obligations guaranteed by the U.S. The company has a P/E ratio of 7.54. The average volume for Anworth Mortgage Asset Corporation has been 1,611,700 shares per day over the past 30 days. Anworth Mortgage Asset Corporation has a market cap of $606.1 million and is part of the real estate industry. Shares are up 3.6% year-to-date as of the close of trading on Monday. TheStreet Ratings rates Anworth Mortgage Asset Corporation as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and generally disappointing historical performance in the stock itself. Highlights from the ratings report include:
- ANWORTH MTG ASSET CORP's earnings per share declined by 20.0% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, ANWORTH MTG ASSET CORP reported lower earnings of $0.68 versus $0.90 in the prior year. For the next year, the market is expecting a contraction of 26.5% in earnings ($0.50 versus $0.68).
- 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 decreased by 18.0% when compared to the same quarter one year ago, dropping from $21.95 million to $18.01 million.
- Looking at the price performance of ANH's shares over the past 12 months, there is not much good news to report: the stock is down 27.97%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than 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.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, ANWORTH MTG ASSET CORP's return on equity is below that of both the industry average and the S&P 500.
- ANH, with its decline in revenue, underperformed when compared the industry average of 9.6%. Since the same quarter one year prior, revenues slightly dropped by 5.8%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- You can view the full Anworth Mortgage Asset Corporation Ratings Report.
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