
Dynex Capital (DX) Stock Forecast & Price Target
Dynex Capital (DX) Analyst Ratings
Bulls say
Dynex Capital Inc. has demonstrated a significant increase in its Agency mortgage-backed securities (RMBS) exposure, with the percentage of coupons in the 4.5%-5.5% range rising to 86% from 80%, indicating a favorable market position. The company increased leverage to 8.3x from 7.4x, resulting in a 25% growth in its portfolio, which reflects the firm's ability to capitalize on favorable market conditions following the removal of certain risk factors. Furthermore, Dynex experienced a notable ~$185 million fair value increase in its portfolio, rising to $15.8 billion, showcasing its potential for mid to high teen returns on equity in agency RMBS despite a decline in hedge values.
Bears say
Dynex Capital Inc. reported a total economic return of (0.8)% in the first quarter, primarily driven by fair value declines in its hedge portfolio amid increased volatility in agency mortgage-backed securities (MBS). In the second quarter, the company posted an earnings per share (EPS) of ($0.14), which fell short of estimates due to hedge-related losses that outweighed fair value adjustments. Additionally, concerns regarding potential Federal Reserve actions, such as increasing agency MBS purchases, may lead to lower mortgage rates and adversely affect future earnings by increasing prepayments and lowering reinvestment yields.
This aggregate rating is based on analysts' research of Dynex Capital and is not a guaranteed prediction by Public.com or investment advice.
Dynex Capital (DX) Analyst Forecast & Price Prediction
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