Armour Residential REIT Inc. (ARR)
7.72% Preferred Share From Armour Residential
ARR-C preferred shares offer a low-risk investment with a fixed-rate and monthly dividends, making them suitable for buy-and-hold investors. The current price is slightly high, but the strong common equity to preferred liquidation ratio provides additional security. With a stripped yield of 7.72%, ARR-C is a solid option if interest rates decline, though not a buy at current prices.
Rubrik: Riding the AI Wave in the Cybersecurity Boom
Rubrik Inc. NYSE: RBRK is a leading cybersecurity company specializing in data protection and recovery, and it is quickly becoming a key player in the rapidly expanding cybersecurity sector. Since its initial public offering (IPO) in April, Rubrik has demonstrated strong financial performance, highlighted by significant growth in Subscription Annual Recurring Revenue (ARR) and cloud ARR.
Rubrik: Lots To Love
Rubrik has demonstrated strong growth, with subscription ARR up 40% and total revenue increasing 35% year-over-year, despite trading near IPO lows. The company benefits from heightened demand for cyber resilience, highlighted by the recent CrowdStrike outage, which underscores the need for robust data recovery systems. With a market cap of $5.6 billion and ARR forecasted to top $1 billion, Rubrik's stock is an attractive buy at 5x forward EV/S targets.
Armour Residential: Backing Out Before Prepayment Risk Emerges (Downgrade)
Armour Residential REIT Inc.'s year-to-date performance is commendable, but lower mortgage rates have introduced headwinds. Lower mortgage rates may lead to higher prepayment rates, lower asset valuations, and enhanced systematic risk. The REIT can mitigate risks by shorting pay-fixed swaps. However, I'm unsure to what extent a better liability-level structure will protect Armour Residential's assets from lower mortgage rates.
ARMOUR Residential: Book Value To Rise As Mortgage Spreads Decline (Rating Upgrade)
From late 2020 to last year, I had a bearish outlook on most agency MBS mortgage REITs, given their leveraged exposure to devaluing assets. The spread between mortgage and Treasury rates appears to have peaked, with a significant decline potentially around the corner. Should a recession cause the Federal Reserve to end its MBS selling pattern or renew its MBS QE program, mortgage spreads may fall by 1-2% back to normal.
Best Income Stocks to Buy for August 6th
ARR, SOI and KBH made it to the Zacks Rank #1 (Strong Buy) income stocks list on August 6, 2024.
Armour Residential REIT (ARR) Beats Q2 Earnings Estimates
Armour Residential REIT (ARR) came out with quarterly earnings of $1.08 per share, beating the Zacks Consensus Estimate of $0.91 per share. This compares to earnings of $1.15 per share a year ago.
Armour Residential: Why The 14.8% Dividend Yield Could Dip
Armour Residential's dividend has declined by 61 cents per share since 2019, a 72% decrease over five years. The mREIT's book value has been decreasing, with the potential for more dilution as they continue to sell common stock. The preferred shares have offered a better total return over the last one, three, and five years compared to the common shares, making them a safer investment option.
Armour Residential: The 15% Yield Indicates Trouble May Be Brewing
Armour Residential is a real estate investment trust that primarily invests in mortgage-backed securities in the residential mortgage market. The company earns income from interest payments on the underlying mortgage loans in its portfolio. Shareholders have experienced a significant loss in investment value over the past three years compared to the S&P 500.
New Strong Sell Stocks for June 18th
ARR, USAS and ARW have been added to the Zacks Rank #5 (Strong Sell) List on June 18, 2024.
Armour Residential REIT Series C: A Discounted Preferred To Buy While We Wait On Interest Rates
Strong jobs report dampens hopes for near-term rate cuts. Net lease real estate investment strategy may not yield the same results as in the past. ARMOUR Residential REIT Series C Preferred offers potential for capital appreciation with lower rates.
New Strong Sell Stocks for June 14th
BWB, CCJ and ARR have been added to the Zacks Rank #5 (Strong Sell) List on June 14, 2024.
