ARMOUR Residential REIT, Inc. (NYSE:ARR) announced that the Company made share repurchases totaling approximately $160 million in 2015 under its previously announced Common stock repurchase program. Total Common shares repurchased for the year exceeded 7.5 million. Common shares outstanding at December 31, 2015 were approximately 36,682,000, representing a 16.9% net reduction in Common shares outstanding compared to December 31, 2014. Over 1,881,000 Common shares remain available for future repurchase under ARMOUR’s current Common stock repurchase program.
The stock buyback cost to ARMOUR was $21.25 per Common share on average, resulting in an estimated accretive effect on Stockholders’ equity per Common share of approximately $1.13 as of December 31, 2015.
Certain Tax Matters
ARMOUR has elected to be taxed as a real estate investment trust (“REIT”) for U.S. Federal income tax purposes. In order to maintain this tax status, ARMOUR is required to timely distribute substantially all of its ordinary REIT taxable income. Accordingly, ARMOUR may increase the amount of one or more announced dividends before the applicable record date or may declare supplemental dividends, if necessary, to meet this tax requirement. Dividends paid in excess of REIT taxable income for a fiscal year (including any taxable income carried forward from the previous year) will generally not be taxable to stockholders. (Original Source)
Shares of Armour Residential R closed yesterday at $21.88, down $0.11 or -0.50%. ARR has a 1-year high of $29.36 and a 1-year low of $19.48. The stock’s 50-day moving average is $21.00 and its 200-day moving average is $20.47.
On the ratings front, Armour Residential has been the subject of a number of recent research reports. In a report issued on November 16, Nomura analyst Brock Vandervliet reiterated a Hold rating on ARR, with a price target of $23, which represents a potential upside of 5.1% from where the stock is currently trading. Separately, on November 9, Deutsche Bank’s Stephen Laws maintained a Hold rating on the stock and has a price target of $24.50.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Brock Vandervliet and Stephen Laws have a total average return of -2.6% and -4.4% respectively. Vandervliet has a success rate of 20.0% and is ranked #2422 out of 3630 analysts, while Laws has a success rate of 42.7% and is ranked #3314.
ARMOUR Residential REIT Inc invests in and manages a leveraged portfolio of residential mortgage backed securities. It invest in residential mortgage backed securities issued or guaranteed by a United States Government-sponsored entity.