ARMOUR Residential REIT, Inc. (NYSE:ARR) announced the effectiveness of its previously disclosed one-for-eight reverse stock split. Beginning with the opening of trading on Monday, August 3, 2015, the Company’s common stock will trade on the NYSE on a reverse split-adjusted basis under the same symbol “ARR,” but with a new CUSIP of 042315 507. As a result of the reverse stock split, the number of outstanding shares of ARMOUR’s common stock was reduced from approximately 350,000,000 shares to approximately 43,750,000 shares. Concurrently, the number of shares of common stock that ARMOUR has authority to issue was reduced from 1,000,000,000 shares to 125,000,000 shares. After the reverse stock split, approximately 81,250,000 shares of common stock will remain available for future issuances. The par value of ARMOUR’s common stock will remain at $0.001 per share after the reverse stock split.
No fractional shares were issued in connection with the reverse stock split. Instead, each stockholder holding fractional shares will receive, in lieu of such fractional shares, cash in an amount determined on the basis of the average closing price of ARMOUR’s common stock on the NYSE for the three consecutive trading days ending on July 31, 2015. Stockholders of record will receive information from Continental Stock Transfer & Trust Company, the Company’s transfer agent, regarding their stock ownership and, if applicable, cash in lieu of fractional share payments. Stockholders who hold their shares in brokerage accounts or “street name” are not required to take any action in connection with the reverse stock split. (Original Source)
Shares of Armour Residential closed today at $2.84, up $0.01 or 0.35%. ARR has a 1-year high of $4.30 and a 1-year low of $2.60. The stock’s 50-day moving average is $2.82 and its 200-day moving average is $2.95.
On the ratings front, Armour Residential has been the subject of a number of recent research reports. In a report issued on June 23, MLV & Co. analyst Rich Eckert upgraded ARR to Buy. Separately, on June 19, Deutsche Bank’s Stephen Laws maintained a Hold rating on the stock and has a price target of $3.70.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Rich Eckert and Stephen Laws have a total average return of -3.8% and 0.8% respectively. Eckert has a success rate of 25.0% and is ranked #3221 out of 3721 analysts, while Laws has a success rate of 50.9% and is ranked #1973.
ARMOUR Residential REIT Inc invests in and manages a leveraged portfolio of residential mortgage backed securities. Itinvest in residential mortgage backed securities issued or guaranteed by a United States Government-sponsored entity.