Hatteras Financial Corporation

Dividend Yield: 14.80%

Hatteras Financial Corporation (NYSE: HTS) shares currently have a dividend yield of 14.80%.

Hatteras Financial Corp. operates as an externally-managed mortgage real estate investment trust (REIT) in the United States. The company has a P/E ratio of 5.98.

The average volume for Hatteras Financial Corporation has been 1,242,300 shares per day over the past 30 days. Hatteras Financial Corporation has a market cap of $1.9 billion and is part of the real estate industry. Shares are down 26.2% year to date as of the close of trading on Friday.

TheStreet Ratings rates Hatteras Financial Corporation as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The gross profit margin for HATTERAS FINANCIAL CORP is currently very high, coming in at 94.41%. Regardless of HTS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HTS's net profit margin of 56.92% significantly outperformed against the industry.
  • Net operating cash flow has slightly increased to $106.84 million or 3.62% when compared to the same quarter last year. Despite an increase in cash flow, HATTERAS FINANCIAL CORP's average is still marginally south of the industry average growth rate of 6.26%.
  • HATTERAS FINANCIAL CORP's earnings per share declined by 27.5% 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, HATTERAS FINANCIAL CORP reported lower earnings of $3.65 versus $3.96 in the prior year. For the next year, the market is expecting a contraction of 34.0% in earnings ($2.41 versus $3.65).
  • 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 20.6% when compared to the same quarter one year ago, dropping from $89.14 million to $70.74 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

If you liked this article you might like

TDK Snaps Up Apple Supplier InvenSense for $1.3 Billion

Apple Supplier Infineon Expected to Report 12% Revenue Growth

This Chipmaker Could Benefit Significantly From a Trump Presidency

Now That Qualcomm Has Dealt for NXP, Here's Who Else Might Get Snatched Up

Qualcomm's $47 Billion Mega-Deal for NXP: Where It Stacks Up in History