NEW YORK (TheStreet) -- Annaly Capital Management (NLY) experienced a steep drop at 2 p.m. EDT and closed down 2.28%at $11.15 on Wednesday. The drop came after Trade Ideas LLC released a note that described the real estate investment trust as "water-logged and getting wetter".
Stocks fell across the board this afternoon after new Fed chairwoman Janet Yellen announced that the Fed's stiumulus package would be ending in the fall and that interest rates could go up as early as next year, which does not bode well for the borrowing costs of REITs like Annaly.
Separately, TheStreet Ratings team rates Annaly CAPITAL MANAGEMENT as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ANNALY CAPITAL MANAGEMENT (NLY) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself."