Dallas, Texas 08/07/2014 (FINANCIALSTRENDS) – ARMOUR Residential REIT, Inc. (NYSE:ARR) which announced mixed second quarter results on August 1, is now receiving analyst research notes and reiterations.
Setting the ball in motion for analyst recommendations was Deutsche Bank which reiterated its position of HOLD on the housing services provider.
Deutsche Reiterates HOLD
In its note, Deutsche Bank’s Greg Poole reiterated HOLD rating and raised target price from $4.20 to $4.40.
The rating follows the mixed results the company reported for its second quarter with EPS was 3 cents below expectation of 13 c.
The note highlighted the recent move by the company to reposition its portfolio. ARR chose to move into short time-frame Mortgage Backed Securities through the sale of its 30 year operable fixed rate securities for $1.2 billion.
Further, the research note also provided commentary on technical aspects which allowed the analyst to trim their second half of 2014 estimates as well as 2015 EPS estimates. Given the upside, Deutsche Bank has revised the target price upwards by 20 cents reaching $4.40 per share.
Second Quarter Results
ARMOUR Residential REIT, Inc. (NYSE:ARR) had filed its Form 8-K for the period ending June 30, 2014 on July 1. The results announced indicated mixed properties but established the fact that the investment market is largely competitive. Aromour’s net income was about $50.9 million which translated to over 10.9% return on stockholder equity.
Changes In Interest Rate Contracts
ARMOUR Residential REIT, Inc. (NYSE:ARR) noted in its quarterly reports that the changes were significant in its interest rate contracts, which was $116 million in the second quarter.
As analyst’s crunch more numbers for this REIT, the dividend of 14% could well be the differentiating factor, in terms of investment indicators. As it gears up for the next quarter in the competitive investment marketplace, remaining invested in Armour appears to be the right choice.