Why AGNC Investment Stock Dropped 13% This Week
Shares of AGNC Investment Corp (NASDAQ: AGNC) are down 13% so far this week as of Thursday's close, according to data provided by S&P Global Market Intelligence, after the company announced worrisome preliminary third-quarter results.
AGNC Investment is a real estate investment trust (REIT) that primarily invests in residential mortgage-backed securities, and the valuation of its stock is closely tied to the underlying value of its investment portfolio and its per-share book value.
In a press release issued before the market opened Monday, AGNC announced the value of its investment portfolio at the end of Q3 was approximatley $59.3 billion, up from $58 billion at the midpoint of the year. The company also revealed its tangible book value as of Sept. 30, 2023 was estimated to be $8.08 per share -- down from $9.39 per share as of June 30, 2023 -- while its "net spread and dollar-roll income" (essentially adjusted/non-GAAP earnings) should be around $0.65 per share. The latter figure was technically slightly ahead of analysts' consensus estimates for net spread and dollar-roll income of $0.62 per share.
Source Fool.com
