Keefe, Bruyette & Woods Maintains Dynex Capital (DX) Outperform Recommendation

Fintel reports that on April 24, 2023, Keefe, Bruyette & Woods maintained coverage of Dynex Capital (NYSE:DX) with a Outperform recommendation.

Analyst Price Forecast Suggests 33.04% Upside

As of April 24, 2023, the average one-year price target for Dynex Capital is 15.62. The forecasts range from a low of 15.15 to a high of $16.28. The average price target represents an increase of 33.04% from its latest reported closing price of 11.74.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Dynex Capital is 51MM, an increase of 177.92%. The projected annual non-GAAP EPS is 0.88.

Dynex Capital Declares $0.13 Dividend

On April 11, 2023 the company declared a regular monthly dividend of $0.13 per share ($1.56 annualized). Shareholders of record as of April 21, 2023 will receive the payment on May 1, 2023. Previously, the company paid $0.13 per share.

At the current share price of $11.74 / share, the stock’s dividend yield is 13.29%.

Looking back five years and taking a sample every week, the average dividend yield has been 10.77%, the lowest has been 7.67%, and the highest has been 17.54%. The standard deviation of yields is 1.76 (n=237).

The current dividend yield is 1.43 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is -5.33. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is -0.13%.

What is the Fund Sentiment?

There are 271 funds or institutions reporting positions in Dynex Capital. This is a decrease of 5 owner(s) or 1.81% in the last quarter. Average portfolio weight of all funds dedicated to DX is 0.11%, an increase of 33.83%. Total shares owned by institutions increased in the last three months by 21.66% to 25,920K shares. © Provided by Fintel DX / Dynex Capital, Inc. Put/Call Ratios The put/call ratio of DX is 0.32, indicating a bullish outlook.

What are Other Shareholders Doing?

© Provided by Fintel DX / Dynex Capital, Inc. Shares Held by Institutions

Balyasny Asset Management holds 2,223K shares representing 4.13% ownership of the company. In it’s prior filing, the firm reported owning 1,460K shares, representing an increase of 34.30%. The firm increased its portfolio allocation in DX by 48.29% over the last quarter.

Jpmorgan Chase holds 1,500K shares representing 2.79% ownership of the company. In it’s prior filing, the firm reported owning 1,152K shares, representing an increase of 23.21%. The firm increased its portfolio allocation in DX by 30.52% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 1,334K shares representing 2.48% ownership of the company. In it’s prior filing, the firm reported owning 1,280K shares, representing an increase of 4.00%. The firm increased its portfolio allocation in DX by 5.04% over the last quarter.

Mirae Asset Global Investments Co. holds 1,093K shares representing 2.03% ownership of the company. In it’s prior filing, the firm reported owning 1,117K shares, representing a decrease of 2.19%. The firm decreased its portfolio allocation in DX by 43.53% over the last quarter.

IWM – iShares Russell 2000 ETF holds 1,061K shares representing 1.97% ownership of the company. In it’s prior filing, the firm reported owning 906K shares, representing an increase of 14.61%. The firm increased its portfolio allocation in DX by 15.79% over the last quarter.

Dynex Capital Background Information

(This description is provided by the company.)

ynex Capital, Inc. is an internally managed real estate investment trust, or REIT, which invests in mortgage assets on a leveraged basis. The Company invests in Agency and non-Agency RMBS, CMBS, and CMBS IO.

See all Dynex Capital regulatory filings.

This story originally appeared on Fintel.