Western Asset Mortgage Capital’s (WMC) “Hold” Rating Reaffirmed at Zacks Investment Research

Zacks Investment Research reiterated their hold rating on shares of Western Asset Mortgage Capital (NYSE:WMC) in a research note published on Saturday morning, Zacks.com reports.

According to Zacks, “Western Asset Mortgage Capital Corporation is focused on investing in, financing and managing primarily residential mortgage-backed securities for which the principal and interest payments are guaranteed by a U.S. Government agency or federally chartered corporation. Western Asset Mortgage Capital Corporation is headquartered in Pasadena, California. “

A number of other research analysts have also recently weighed in on the company. Bank of America lowered their price objective on Western Asset Mortgage Capital from $10.75 to $10.50 and set a buy rating on the stock in a research report on Monday, September 23rd. ValuEngine cut Western Asset Mortgage Capital from a hold rating to a sell rating in a research report on Tuesday, August 13th.

Shares of WMC stock traded up $0.03 during trading hours on Friday, reaching $9.65. 338,834 shares of the company traded hands, compared to its average volume of 395,216. Western Asset Mortgage Capital has a 12-month low of $8.26 and a 12-month high of $10.66. 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 $512.02 million, a P/E ratio of 7.10 and a beta of 0.76. The firm has a 50-day moving average price of $9.70 and a 200 day moving average price of $10.03.

Western Asset Mortgage Capital (NYSE:WMC) last posted its quarterly earnings data on Tuesday, August 6th. The financial services provider reported $0.31 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.32 by ($0.01). Western Asset Mortgage Capital had a net margin of 18.19% and a return on equity of 11.60%. The company had revenue of $15.86 million for the quarter, compared to analysts’ expectations of $20.80 million. During the same period in the previous year, the firm earned $0.36 earnings per share. Sell-side analysts predict that Western Asset Mortgage Capital will post 1.25 EPS for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 25th. Investors of record on Monday, September 30th will be issued a $0.31 dividend. The ex-dividend date is Friday, September 27th. This represents a $1.24 dividend on an annualized basis and a yield of 12.85%. Western Asset Mortgage Capital’s dividend payout ratio is presently 91.18%.

A number of hedge funds and other institutional investors have recently bought and sold shares of WMC. Nuveen Asset Management LLC purchased a new position in Western Asset Mortgage Capital in the 2nd quarter worth approximately $4,023,000. Vanguard Group Inc. lifted its holdings in Western Asset Mortgage Capital by 17.2% in the 2nd quarter. Vanguard Group Inc. now owns 2,528,393 shares of the financial services provider’s stock worth $25,233,000 after purchasing an additional 371,971 shares in the last quarter. BlackRock Inc. lifted its holdings in Western Asset Mortgage Capital by 3.8% in the 2nd quarter. BlackRock Inc. now owns 5,102,019 shares of the financial services provider’s stock worth $50,919,000 after purchasing an additional 186,780 shares in the last quarter. UBS Group AG lifted its holdings in Western Asset Mortgage Capital by 11.3% in the 2nd quarter. UBS Group AG now owns 1,561,447 shares of the financial services provider’s stock worth $15,583,000 after purchasing an additional 157,923 shares in the last quarter. Finally, Victory Capital Management Inc. purchased a new position in Western Asset Mortgage Capital in the 2nd quarter worth approximately $1,331,000. 46.56% of the stock is currently owned by institutional investors.

About Western Asset Mortgage Capital

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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