Maxim Group analyst Michael Diana maintained a Hold rating on American Capital Mortgage (NASDAQ: MTGE) today and set a price target of $19.75. The company’s shares closed yesterday at $19.50, close to its 52-week high of $20.
Diana noted:
“MTGE entered into a definitive agreement to be acquired by Annaly Capital Management (NLY) for cash ($9.82 per share) and stock (0.9519 shares of NLY stock for each share of MTGE stock). At yesterday’s closing price for NLY, the value of the stock portion would be $9.72, and the total acquisition price would be $19.54 per MTGE share. This compares to MTGE’s March 31 book value of $19.76. We lower our target price to $19.75, from $21, which we regard as the approximate acquisition price at closing in 3Q18. Since MTGE shares closed at $19.50 yesterday, we are lowering our rating to Hold, from Buy.”
According to TipRanks.com, Diana is a 5-star analyst with an average return of 6.5% and a 61.1% success rate. Diana covers the Financial sector, focusing on stocks such as Manhattan Bridge Capital Inc, Arlington Asset Investment, and Westamerica Bancorporation.
American Capital Mortgage has an analyst consensus of Moderate Buy, with a price target consensus of $19.63.
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The company has a one-year high of $20 and a one-year low of $16.15. Currently, American Capital Mortgage has an average volume of 522.7K.
Based on the recent corporate insider activity of 10 insiders, corporate insider sentiment is negative on the stock.
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MTGE Investment Corp. is a mortgage real estate investment trust. It invests in agency mortgage-backed securities, non-agency mortgage investments, and other real estate-related assets, including skilled nursing and senior living facilities operated by third parties.
