Bullish indicating open at $55-$60, IPO prices at $37
Dynex Capital Inc (NYSE:DX). shares soared to a 52-week high this week, reaching a price level of $13.09 USD. The mortgage REIT stands out with its impressive 14% dividend yield and an 18-year track record of consistent dividend payments, according to InvestingPro data. The company’s stock has been on an upward trajectory, delivering a total return of 17.28% over the past year. This performance indicates a strong period for the mortgage real estate investment trust, particularly as three analysts have recently revised their earnings expectations upward. The 52-week high serves as a significant milestone for Dynex Capital, marking a notable recovery and resilience in a dynamic economic landscape. For deeper insights into Dynex Capital’s valuation and growth prospects, including exclusive analysis and 8 additional ProTips, check out the comprehensive research report available on InvestingPro.
In other recent news, Dynex Capital has seen a series of significant developments. Compass Point has maintained a Buy rating on Dynex Capital shares and increased the stock target to $14.50. This decision is based on the current market conditions, including the re-inversion of the yield curve and the likelihood of continued wide spreads and low volatility, making the prospects for value creation more favorable in 2025. Despite a slight decline in book value per share from $13.00 to $12.70 between Q3 and Q4 2024, the value remained relatively stable into 2025.
Dynex Capital’s management team responded to these market conditions by increasing leverage to 7.9 times and expanding the investment portfolio. The expansion was funded by the issuance of almost 6 million shares to finance asset acquisitions, predominantly focusing on higher-coupon RMBS.
In addition, Dynex Capital corrected a misstatement made by its Co-CEO and Chairman, Byron L. Boston, on his personal LinkedIn account, emphasizing the importance of obtaining official company information from verified sources. The company also announced a change in its independent registered public accounting firm, appointing Ernst & Young LLP as their new auditor for the fiscal year ending December 31, 2025. Furthermore, Dynex Capital expanded its at-the-market equity offering program, increasing the number of shares available for sale to a total of 69,353,243, with 35,468,000 shares still available for issuance.
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