Global Retirement Partners LLC has made a significant investment in the Federal Agricultural Mortgage Corporation, acquiring a stake valued at approximately $771,000. This purchase, which involved 3,970 shares of the credit services provider, occurred during the second quarter of 2023, as disclosed in its latest filing with the Securities and Exchange Commission.
This investment is part of a broader trend, with several hedge funds recently adjusting their positions in Federal Agricultural Mortgage. For instance, Boston Partners increased its stake by 1.1%, now holding 420,637 shares worth around $80.1 million after acquiring an additional 4,764 shares. Similarly, American Century Companies Inc. raised its holdings by 7.7%, bringing its total to 263,396 shares, valued at $51.2 million.
Geode Capital Management LLC also expanded its position in the company, increasing its shares by 1.6% to a total of 223,157 shares, worth around $43.4 million. Charles Schwab Investment Management Inc. raised its stake by 4.9% during the first quarter, now owning 106,253 shares valued at $19.9 million. Lastly, the Bank of New York Mellon Corp. grew its holdings by 1.3% in the second quarter, acquiring 657 shares to reach a total of 52,345 shares valued at $10.2 million. Overall, institutional investors and hedge funds own 68.03% of Federal Agricultural Mortgage’s stock.
Analysts Weigh In on AGM’s Performance
Several analysts have recently assessed the stock, leading to a shift in ratings. Keefe, Bruyette & Woods upgraded Federal Agricultural Mortgage from a “hold” to a “moderate buy” rating, raising the target price from $217.00 to $219.00. Weiss Ratings maintained a “hold (c)” rating, while Wall Street Zen upgraded the stock from a “sell” to a “hold” rating.
As of now, the stock has an average rating of “Moderate Buy” and an average target price of $219.00. Following these developments, shares of Federal Agricultural Mortgage opened at $172.96 on the New York Stock Exchange, reflecting a 0.9% increase. The stock has experienced a yearly range, with a low of $155.00 and a high of $217.14. The company holds a market capitalization of approximately $1.89 billion and has a price-to-earnings ratio of 10.19.
Quarterly Earnings and Dividend Announcements
Recently, Federal Agricultural Mortgage announced its quarterly earnings data. For the quarter ending November 3, 2023, the company reported earnings per share (EPS) of $4.52, surpassing analysts’ expectations of $4.43 by $0.09. The firm recorded revenues of $97.77 million for the quarter, slightly below the anticipated $100.94 million. The company achieved a net margin of 13.14% and a return on equity of 18.86%. Looking ahead, sell-side analysts project that Federal Agricultural Mortgage Corporation will post earnings of $17.6 per share for the current fiscal year.
In addition to its financial performance, Federal Agricultural Mortgage announced a quarterly dividend of $1.50 per share, set to be paid on December 31, 2023. Shareholders of record as of December 15, 2023, will receive this dividend, which translates to an annualized rate of $6.00 and a dividend yield of 3.5%. The company maintains a payout ratio of 34.17%, indicating a sustainable approach to dividend distribution.
Federal Agricultural Mortgage Corporation operates within the secondary market for loans in the United States, functioning through various segments, including Corporate AgFinance, Farm & Ranch, Rural Utilities, and Renewable Energy. Its Agricultural Finance segment is responsible for purchasing and retaining eligible loans, servicing loans, and ensuring the payment of principal and interest on securities backed by pools of eligible loans.
The strategic investments and financial results position Federal Agricultural Mortgage as a notable player in the credit services sector, reflecting the confidence of institutional investors and analysts alike.
