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Investing.com - JMP Securities has reiterated its Market Perform rating on Dynex Capital (NYSE:DX), a $1.34 billion market cap mortgage real estate investment trust with an impressive 16.25% dividend yield and an 18-year track record of consistent dividend payments, while lowering its earnings available for distribution (EAD) estimates.
The research firm reduced its 2025 EAD estimate to $1.66 from a previous forecast of $2.03, representing a significant downward revision of approximately 18%. JMP also trimmed its 2026 EAD estimate to $2.04 from $2.10.
For the current quarter ending June 2025 (2Q25), JMP projects an EAD of $0.48 for Dynex Capital, though the firm did not provide its previous estimate for comparison.
Despite the lowered earnings projections, JMP maintained its Market Perform rating on Dynex Capital stock, indicating a neutral outlook on the company’s near-term performance potential.
JMP justified its rating by noting that Dynex shares are "fairly valued at 1.05x current estimated book value versus an Agency MREIT peer median of 0.98x," suggesting the stock is trading at a slight premium to its mortgage REIT peers. According to InvestingPro analysis, which shows a Fair Value assessment indicating slight overvaluation and an overall Financial Health Score of "FAIR," this premium valuation appears justified given the company’s strong dividend profile. InvestingPro subscribers have access to 6 additional key insights about Dynex Capital, along with comprehensive financial metrics and expert analysis in the Pro Research Report.
In other recent news, Dynex Capital reported its first-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of 33 cents, compared to the forecasted 28 cents. However, the company’s revenue fell short of projections, recording $17.13 million against the expected $31.04 million. In terms of dividends, Dynex Capital declared a cash dividend of $0.17 per share for June 2025 and a quarterly cash dividend of $0.62395 per share on its Series C Preferred Stock. Additionally, the company has expanded its at-the-market stock offering program, increasing the number of shares available by 30 million. This expansion is part of Dynex Capital’s ongoing capital management strategy. Furthermore, the company raised $270 million in new capital during the quarter, enhancing its liquidity position. Dynex Capital continues to focus on maintaining a strong liquidity position and disciplined risk management in a fluctuating market environment.
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