mREIT News Updates: American Capital Agency Corp. (AGNC) Trading Analysis, Annaly Capital Management, Inc. (NLY) CEO Wellington Denahan & American Capital Mortgage Investment Crp (MTGE)

Editor’s Note: American Capital Agency Corp. (NASDAQ:AGNC), Annaly Capital Management, Inc. (NYSE:NLY), American Capital Mortgage Investment Crp (NASDAQ:MTGE)

Trading Analysis for American Capital Agency (AVAFIN)
A total of 21 block trades were executed during the market session, typically at least 10,000 shares or more represent a single block unit. Block trading activity shows that $11,080,100 worth of shares were bought and $7,739,923 worth of shares were sold by institutional investors. The positive net cash flow of $3,340,176 into the stock shows that investment houses have positive outlook for shares of American Capital Agency Corp. (NASDAQ:AGNC). Institutional traders also took positions in options where a total of 18,299 contracts was traded. The put/call ratio equaled 0.24 with 3,597 put and 14,702 call contracts exchanging hands.

American Capital Agency Corp. (NASDAQ:AGNC)

Annaly CEO’s $2 Million Buy Near Lows (Barron’s)
Four insiders at Annaly Capital Management, Inc. (NYSE:NLY) bought 217,818 shares of the mortgage real-estate investment trust for $2,411,911 from Aug. 12 through 21 at prices near a 52-week low. Chief Executive and Chairman Wellington J. Denahan conducted her first open-market transaction in six years when she bought 181,818 shares of Annaly Capital for $1,993,631, an average of $10.96 each. She now directly holds 1,043,463 shares, a stake of less than 1% in Annaly Capital Management, Inc. (NYSE:NLY). Denahan’s most recent previous transaction was on Aug. 15, 2007, when she bought 19,000 shares for $247,000, an average of $13 each.

Mortgage REIT Insiders Take Advantage of the Dip (DailyFinance)
As stock values drop, insiders at several trusts have been busy snapping up shares at bargain-basement prices. In late July, American Capital Agency Corp. (NASDAQ:AGNC)’s CIO Gary Kain bought 25,000 shares at a $10 per-share discount to what CEO Malon Wilkus paid in February. On August 1, Kain also purchased the same number of shares of American Capital Mortgage Investment Crp (NASDAQ:MTGE), the hybrid mREIT also under Kain’s purview. The discount per share on that transaction, compared with Wilkus’ purchase earlier in the year, was over $6 per share.

American Capital Agency: Dividend Cut In The Cards (Seeking Alpha)
Interest rates remained volatile during the second quarter because of the uncertainty around the unwinding of QE. As a result, the mortgage REITs sector suffered the most. The third quarter is no different. Therefore, mortgage REITs, which invest exclusively in Agency residential mortgage backed securities, remain least preferred. American Capital Agency Corp. (NASDAQ:AGNC) is one such mREIT. However, it was once considered one of the best managed mREITs. In the short-term, rising rates cause the book value of mREITs to decline. In the long-run, rising rates mean wider spreads. Wider spreads translate into higher dividends ultimately. Also, rising rates would push prepayments down, causing mortgage REITs to realize lower amortization costs.

Annaly Capital Management (NLY) Passes Through 14% Yield Mark (Forbes)
Looking at the universe of stocks we cover at Dividend Channel, in trading on Tuesday, shares of Annaly Capital Management, Inc. (NYSE:NLY) were yielding above the 14% mark based on its quarterly dividend (annualized to $1.60), with the stock changing hands as low as $11.36 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market’s total return. Annaly Capital Management, Inc. (NYSE:NLY) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets.