Long Story Short: Time To Watch Annaly Capital Management, Inc. (NLY)

Annaly Capital Management, Inc. (NLY) will probably climb 3.12 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $11-month high price target. This represents a whopping 10.66 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $10, which represents a return potential of 0.6 percent when compared to the closing price of the stock of $9.94 on Friday, January 11. The lowest price target for the stock is $9.75 — slightly more than -1.91 percent from NLY’s current share price.

The stock is currently hovering around the first support level of $9.83. Below this, the next support is placed in the zone of $9.71. Till the time, the NLY stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 49.11 on daily chart, which may remain a cause for concern. If the price breaks below $9.71 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $10.01 mark may result into a pull-back move towards $10.07 level.

On 11th of January, Annaly Capital Management, Inc. (NYSE:NLY) shares ended higher after a volatile session. The shares accumulated 0.17 points or 1.74 percent at $9.94 with a heavy trade volume of 24.008 million shares. After opening the session at $9.8, the shares went as high as $9.96 and as low as $9.78, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $12.8 billion and now has 1.29 billion shares outstanding. Annaly Capital Management, Inc. (NLY) stock has lost -1.58 percent of market value in 21 trading days.

NLY stock has a trailing 3-year beta of 0.31, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.52 a share in the trailing twelve months. The stock’s value has surged 1.22 percent year to date (YTD) against a decline of -12.58 percent in 12 month’s time. The company’s shares still trade -13.19 percent away from its 1-year high of $11.45 and 3.87 percent up from 52-week low of $9.57. The average consensus rating on the company is 2.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Annaly Capital Management, Inc. (NLY) are trading at a P/E ratio of 3.94 times earnings reported for the past 12 months. The industry NLY operates in has an average P/E of 47.22. Its P/E ratio went as low as 2.66X and as high as 22.52 over the 5-year span. Further, it is sporting a 2.57 on the Price-to-Sales ratio. Compare this with the industry average P/S of 8.19. 67.4 percent is the gross profit margin for Annaly Capital Management, Inc. and operating margin sits at 61.2 percent. Along with this, the net profit margin is 58.6 percent.

Let’s take a look at some insider activity at Annaly Capital Management, Inc. (NYSE:NLY) and see the pattern. The earliest insider trade took place on 02/21/2018. Green Anthony C gathered a total of 23.25 thousand shares of company at average share price of $10.42. The total for the purchase was set at $242.27 thousand. After this transaction, the Chief Legal Officer account balance stood at 101 thousand shares. The stock lost -4.61 percent since that insider purchase. On 12/07/2017, Denahan Wellington, Chairman of Board/Exec. Chair., purchased 125.28 thousand shares at a price per share of $11.97. This added 1.5 million shares to the insider’s fortune and the stock saw a -16.96 percent retreat in value since the news became public. This transaction left 1.8 million shares in the Chairman of Board/Exec. Chair. account.

On 12/01/2017, CFO Votek Glenn performed a purchase transaction worth $293.25 thousand. This purchase at $11.73 each has added 25 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -15.26 percent decrease since the transaction was reported. The insider now is left with 91.04 thousand shares remaining in the account. Segalas Donnell, who performs the Director job, bought 13.7 thousand shares for $155.36 thousand. The acquisition occurred on 11/10/2017 was priced at $11.34 per share. The share price plunged -12.35 percent since the reporting date. Segalas Donnell now left with a stake of 2.6 thousand NLY stock worth $25.84 thousand after the insider buying.