ARMOUR Residential REIT Price Target Increased to $4.50 by Analysts at Keefe, Bruyette & Woods (ARR)
Posted by Ethan Ryder on Aug 1st, 2014
ARMOUR Residential REIT, Inc. logoEquities research analysts at Keefe, Bruyette & Woods lifted their price target on shares of ARMOUR Residential REIT (NYSE:ARR) from $4.25 to $4.50 in a research note issued to investors on Friday. The firm currently has a “market perform” rating on the stock. Keefe, Bruyette & Woods’ price target suggests a potential upside of 7.14% from the company’s current price.
ARR has been the subject of a number of other recent research reports. Analysts at Deutsche Bank reiterated a “hold” rating on shares of ARMOUR Residential REIT in a research note on Friday. They now have a $4.40 price target on the stock, up previously from $4.20. Finally, analysts at Barclays cut their price target on shares of ARMOUR Residential REIT from $5.00 to $4.50 in a research note on Tuesday, May 6th. They now have an “equal weight” rating on the stock. Two investment analysts have rated the stock with a sell rating and five have issued a hold rating to the stock. The company presently has an average rating of “Hold” and a consensus target price of $4.73.
In the past, CFP has nearly always re-tested the Rights Offering low. So the price action is not unusual. The trick with CFP is finding a good entry point and getting out of the stock within two weeks after they announce the Rights Offering. My entry price average is $4.57; with a 7 cent dividend each month I am happy to sit tight: they pay me a 20% yield just for holding shares.
CFP will more than likely start heading up when it usually does: around the end of the year/beginning of 2015. I expect a Rights Offering sometime in April/May of next year, so the time to sell out of CFP will be about the beginning of April.
Deutsche Bank re-iterates hold rating and raises ARR's price target to 4.40.
ARR is among the safer stocks to own in a market downturn since the stock price is severely undervalued right now. It is trading at about a 16% discount to book value. If you can find the beaten down dividend stocks they will provide you a better place to put your money in a correction for two reasons: 1. the stock price is already beaten down and fewer shareholders feel compelled to sell; 2. you earn dividends each month no matter the stock price.
Cheers to all. I loaded up at $4.22 and $4.19 and will hold for quite a while, at least until we head above the $4.60 mark.
We are half-way between the ex-dates right now and so at our usual low point of the month. Today is another good day to load up shares if you're interested in entering CFP. I grabbed some more at $4.57 and don't plan to buy anymore :) Some folks on this message board make it sound like CFP came into existence yesterday and so has no track record of stock price action, but a quick look at the history of the stock will tell you nothing unusual is happening. GTLAL.
ARR has managed to do exactly what they needed to do: raise the book value. They told us, and all informed investors knew, that this quarter would be a negative one for earnings/share due to the transition from 30 year mortgages to 15 year mortgages. That should all be complete right now. The next quarter should see the book value above $5.00/share, and maybe as high #$%$20, and when that happens, we can expect that ARR will also consider raising the dividend a penny to 6 cents/month (sometime early or middle next year). All in the all the earnings report was expected and, for me, encouraging. The key element of the report was book value. Book value has been sliding for quite a while; they now have it under control and are increasing it. Look for the share price to slowly and steadily incline up in the coming months. GLTAL.
I took the opportunity to load up another 1000 shares at $20.14. We'll get 20 cents worth on the dividend just for holding through Monday. ARP should ramp up to the $22-$23 range in the coming months.
I also grabbed some FSC, ARR, TAXI, and more OAKS today. GLTY.
I entered a large position today at $11.11. The dividend is set to be announced today or tomorrow and should provide us a nice near-term catalyst, and probably a bounce up over $12.25. GTLAL.
Today's news should take us to about $4.00/share on a spike, leaving us settled down in the mid-3's for the day. $5.00/share should come quickly, within the next week if I had to guess. GLTAL. Our day is finally here!
No, I am not trying to talk the stock down. I gave longs a word of caution is all. Take it for what it's worth; if you don't like it, then don't listen to it.
Dividends are a psychological boost to falling share prices. Anyone who has invested in dividend stocks knows that many investors will wait to sell their shares until the ex-date or soon after, even if there is a high likelihood the share price will dive after the ex-date. The ex-date is Monday, August 4; I expect the share price to do very little until then, but I also expect that early next week could bring another round of selling to ROYT. Time will tell. GLTY.
Whether it is desirable or not, look for a bunch of investors to hit the door running, selling out of ARR as quickly as they possibly can. The selling pressure should drive us down for the next while. GLTAL. JMHO.
If you are looking to enter EHTH, premarket is a great time! The panic sellers are getting rid of their shares very cheaply! You can actually buy them for $23.00/share right now! GLTAL.
The share price had already dropped to take into account missed earnings. The prices down in the mid-20's are a bargain. We might even head back up into the 30's within the next month. GLTAL.
You can buy shares really cheap this morning premarket! The stock price should bounce back to about the $27-$28 range today; this low volume sell-off is a great time to pick up some cheap shares. GLTAL.
Like it or not, it looks like the stock wants to dip below $7.00. It usually does dip that low once/year, so it would not be surprising. I'm not sure why GAIN is so weak right now but the stock is doing horribly at a time when it should be stronger. Any idea why GAIN is performing so poorly? What is driving the share price down? TIA.