
Dynex Capital (DX) Stock Forecast & Price Target
Dynex Capital (DX) Analyst Ratings
Bulls say
Dynex Capital Inc demonstrated a robust performance with a significant portfolio growth of 25%, expanding from $11.1 billion to $14.2 billion quarter-over-quarter, and further increasing to $15.8 billion subsequently. The company's leverage also improved, rising to 8.3x from 7.4x, indicating a more aggressive but calculated approach to capital deployment amid a favorable economic backdrop characterized by reduced risk factors. Moreover, an impressive fair value increase of approximately $185 million in the portfolio highlights Dynex’s potential for mid-high teen returns on equity in agency mortgage-backed securities.
Bears say
Dynex Capital Inc reported a total economic return of (0.8)% in the first quarter, driven by fair value declines in its hedge portfolio due to widening spreads and increased volatility in agency mortgage-backed securities (MBS). The company also experienced a loss in the second quarter, with earnings per share (EPS) of ($0.14) falling short of expectations due to hedge-related losses before fair value adjustments. Additionally, potential future increases in agency MBS purchases by the Federal Reserve could lead to declining mortgage rates, resulting in increased prepayments and lower reinvestment yields, which would further impair earnings.
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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