AGNC Investment Story

AGNC -- USA Stock

USD 15.99 0.59 3.56%

Macroaxis Story

AGNC Investment Corp is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 25th of January 2021. The stock is in a buyout trend. AGNC Investment Net Income Per Employee is projected to decrease significantly based on the last few years of reporting. The past year's Net Income Per Employee was at 15.51 Million. The current year Revenue Per Employee is expected to grow to about 75.8 M, whereas Average Assets are forecasted to decline to about 107.7 B. As many passive investors are finally getting excited about real estate space, AGNC Investment Corp could be a good starting point. I will address a few possible reasons investors do not currently respect this stock.

Published over a month ago

View all stories for AGNC Investment | View All Stories

How much will AGNC Investment owe in February?

The company currently holds 54.77 B in liabilities with Debt to Equity (D/E) ratio of 5.11, indicating AGNC Investment may have difficulties to generate enough cash to satisfy its financial obligations. AGNC Investment Corp has a current ratio of 0.16, indicating that it has a negative working capital and may not be able to pay financial obligations when due.

AGNC Investment financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of AGNC Investment, including all of AGNC Investment's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of AGNC Investment assets, the company is considered highly leveraged. Understanding the composition and structure of overall AGNC Investment debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.

Please read more on our technical analysis page.

Understanding AGNC Investment Total Debt

AGNC Investment Corp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. AGNC Investment Corp has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on AGNC Investment balance sheet include debt obligations and money owed to different AGNC Investment vendors, workers, and loan providers. Below is the chart of AGNC Investment main long-term debt accounts currently reported on its balance sheet.

You can use AGNC Investment Corp financial leverage analysis tool to get a better grip on understanding its financial position

How important is AGNC Investment's Liquidity

AGNC Investment financial leverage refers to using borrowed capital as a funding source to finance AGNC Investment Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. AGNC Investment financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between AGNC Investment's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.

It is good to see analyst projects for AGNC Investment, but it might be worth checking our own buy vs. sell analysis

Payment of 2542 shares by Bernice Bell of AGNC Investment subject to Rule 16b-3

Legal trades by AGNC Investment insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

AGNC Investment insider trading alert for payment of common stock by Bernice Bell, SVP and Chief Financial Off, on 23rd of February 2021. This event was filed by Agnc Investment Corp with SEC on 2021-02-23. Statement of changes in beneficial ownership - SEC Form 4. Bernice Bell currently serves as chief accounting officer and sr. vp of AGNC Investment Corp [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down AGNC Investment Indicators

The entity reported the previous year's revenue of 69 M. Net Loss for the year was (265 M) with profit before overhead, payroll, taxes, and interest of 771 M.

Asset Breakdown

	Total Assets	110.33 Billion
	Current Assets	23.18 Billion
	Goodwill	476.21 Million

AGNC Investment technical analysis suggests possible bounce-back

Current value at risk is at -1.35. AGNC Investment Corp has low volatility with Treynor Ratio of -2.49, Maximum Drawdown of 7.31 and kurtosis of 5.19. However, we advice all investors to further analyze AGNC Investment Corp to make certain all market information is desiminated and is consistent with the current expectations about AGNC Investment upside potential.

Our Conclusion on AGNC Investment

Whereas other companies under the reit?mortgage industry are still a bit expensive, AGNC Investment may offer a potential longer-term growth to investors. With a relatively neutral outlook on the current economy, it is better to hold off any trading of AGNC Investment as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to AGNC Investment.

About Contributor

Ellen Johnson is a Member of Macroaxs Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of AGNC Investment Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2021 Macroaxis LLC