ValuEngine Lowers Western Asset Mortgage Capital (NYSE:WMC) to Sell

ValuEngine lowered shares of Western Asset Mortgage Capital (NYSE:WMC) from a hold rating to a sell rating in a research report sent to investors on Tuesday, ValuEngine reports.

Separately, Zacks Investment Research downgraded Western Asset Mortgage Capital from a hold rating to a sell rating in a research note on Sunday, July 14th.

Shares of WMC stock opened at $9.64 on Tuesday. Western Asset Mortgage Capital has a 1-year low of $8.26 and a 1-year high of $11.38. The stock’s fifty day moving average price is $9.99 and its 200 day moving average price is $10.11. The company has a debt-to-equity ratio of 8.45, a current ratio of 943.01 and a quick ratio of 943.01. The company has a market cap of $513.08 million, a price-to-earnings ratio of 7.09 and a beta of 0.78.

Western Asset Mortgage Capital (NYSE:WMC) last announced its earnings results on Tuesday, August 6th. The financial services provider reported $0.31 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.32 by ($0.01). Western Asset Mortgage Capital had a return on equity of 11.60% and a net margin of 18.19%. The business had revenue of $15.86 million for the quarter, compared to analysts’ expectations of $20.80 million. During the same quarter last year, the firm earned $0.36 earnings per share. As a group, equities research analysts anticipate that Western Asset Mortgage Capital will post 1.28 earnings per share for the current year.

The firm also recently announced a quarterly dividend, which was paid on Friday, July 26th. Investors of record on Monday, July 1st were paid a dividend of $0.31 per share. The ex-dividend date of this dividend was Friday, June 28th. This represents a $1.24 annualized dividend and a yield of 12.86%. Western Asset Mortgage Capital’s dividend payout ratio (DPR) is 91.18%.

In other Western Asset Mortgage Capital news, Director Jennifer Murphy bought 10,000 shares of the company’s stock in a transaction that occurred on Tuesday, May 21st. The shares were purchased at an average cost of $9.98 per share, for a total transaction of $99,800.00. Following the purchase, the director now directly owns 85,000 shares in the company, valued at $848,300. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CIO Harris Trifon bought 3,500 shares of the company’s stock in a transaction that occurred on Thursday, May 23rd. The shares were acquired at an average price of $10.05 per share, for a total transaction of $35,175.00. Following the completion of the purchase, the executive now owns 6,003 shares in the company, valued at $60,330.15. The disclosure for this purchase can be found here. 0.49% of the stock is owned by insiders.

A number of institutional investors have recently bought and sold shares of WMC. Bank of New York Mellon Corp raised its holdings in Western Asset Mortgage Capital by 17.4% during the 4th quarter. Bank of New York Mellon Corp now owns 213,480 shares of the financial services provider’s stock worth $1,780,000 after purchasing an additional 31,579 shares during the last quarter. Northern Trust Corp raised its holdings in Western Asset Mortgage Capital by 15.6% during the 4th quarter. Northern Trust Corp now owns 575,808 shares of the financial services provider’s stock worth $4,802,000 after purchasing an additional 77,588 shares during the last quarter. Geode Capital Management LLC raised its holdings in Western Asset Mortgage Capital by 16.3% during the 4th quarter. Geode Capital Management LLC now owns 493,108 shares of the financial services provider’s stock worth $4,112,000 after purchasing an additional 69,178 shares during the last quarter. Principal Financial Group Inc. bought a new position in Western Asset Mortgage Capital during the 4th quarter worth approximately $454,000. Finally, Squarepoint Ops LLC bought a new position in Western Asset Mortgage Capital during the 4th quarter worth approximately $284,000. Institutional investors and hedge funds own 42.43% of the company’s stock.

Western Asset Mortgage Capital Company Profile

Western Asset Mortgage Capital Corporation operates as a real estate investment trust in the United States. It focuses on investing in, financing, and managing a portfolio of agency and non-agency residential mortgage-backed securities and commercial mortgage-backed securities, residential whole-loans, residential bridge loans, securitized commercial loans, and other financial assets.

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