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4 Top Performing Mortgage REITs Rise Sharply On Wells Fargo Sector Upgrade

Benzinga.com
0 Comments| July 8, 2015

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On July 7, Wells Fargo analyst Joel Houck published a research note, "Sell-off Overdone; Upgrading mREITs to Overweight."

Most investors are attracted to the mortgage REIT (mREIT) sector because of the high dividend yields; however, there are many variables which can lead to losses in book value per share (BVPS), which in turn can lower share prices.

The Wells Fargo rating system includes a "V" for volatility to help alert investors the there is a high potential for price volatility.

"A stock is defined as volatile if the stock price has fluctuated by +/-20% or greater in at least 8 of the past 24 months or if the analyst expects significant volatility."

Notably all seven of the mREITs which were upgraded by Houck from Market Perform (2) to Outperform (1) also carry the "V" designation, including four trading up ~3 percent:

  • American Capital Agency (NASDAQ: AGNC) $6.8 billion cap, 12.4 percent yield
  • CYS Investments (NYSE: CYS) $1.3 billion cap, 13.75 percent
  • AG Mortgage Investments (NYSE: MITT) $516 million cap, 13.2 percent yield
  • Annaly Capital Management (NYSE: NLY) $9.2 billion cap, 12.4 percent ...

/www.benzinga.com/analyst-ratings/analyst-color/15/07/5655268/4-top-performing-mortgage-reits-rise-sharply-on-wells-fa alt=4 Top Performing Mortgage REITs Rise Sharply On Wells Fargo Sector Upgrade>Full story available on Benzinga.com

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