AGNC Investment Corp. launches $1.5B stock issuance program

Published 24/04/2025, 21:56
AGNC Investment Corp. launches $1.5B stock issuance program

BETHESDA, MD - AGNC Investment (NASDAQ:AGNC) Corp. (market cap: $8.31 billion), a real estate investment trust known for maintaining dividend payments for 18 consecutive years, announced today the initiation of a new "at the market" common stock issuance program. The company, which currently offers an impressive 16.72% dividend yield, entered into sales agreements with a consortium of financial institutions, allowing for the sale of common stock totaling up to $1.5 billion.

The sales agreements involve major financial firms, including Goldman Sachs & Co. LLC, Barclays (LON:BARC) Capital Inc., and J.P. Morgan Securities LLC, among others. These agents will facilitate the sale of shares on a best-efforts basis, with a potential commission of up to 1.0% of the gross sales price for shares sold.

The shares will be offered through various channels, such as ordinary brokers’ transactions, market makers, the Nasdaq Global Select Market, over-the-counter market, privately negotiated transactions, including block trades, or a combination of these methods.

The stock issuance is pursuant to AGNC’s automatic shelf registration statement filed on May 9, 2024, and the related prospectus and prospectus supplement dated April 24, 2025. The program will continue until all shares are sold or until the sales agreements are terminated by either the agents or AGNC.

This strategic move by AGNC Investment Corp. provides the company with a flexible option to raise capital as needed in a manner that can be adjusted to market conditions. This announcement is based on a press release statement and the details of the sales agreements are documented in the SEC filing made today. The offering is subject to the terms outlined in the registration statement and related prospectus, which investors are encouraged to review for more detailed information. With analyst targets ranging from $8.50 to $11.00 per share, InvestingPro subscribers can access additional insights, including 8 more ProTips and a comprehensive Pro Research Report, to better evaluate this investment opportunity.

In other recent news, AGNC Investment Corp reported its first-quarter earnings for 2025, surpassing analyst expectations with an earnings per share (EPS) of $0.44, compared to the forecast of $0.40. The company’s revenue, however, came in slightly below expectations at $846 million against the anticipated $850.28 million. Despite this revenue shortfall, AGNC’s strategic financial maneuvers and EPS beat have bolstered investor confidence. The company declared dividends of $0.36 per share and reported a total comprehensive income of $0.12 per common share. AGNC’s asset portfolio increased to $79 billion, reflecting strategic growth and asset management. Analyst firm Piper Sandler noted AGNC’s resilience in navigating market volatility, while UBS highlighted the company’s strategic leverage management. AGNC’s strong liquidity position, with $6 billion in cash and unencumbered assets, further supports its financial stability. The company remains optimistic about the Agency MBS market, with expectations of returns between 19-22% at current valuation levels.

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