Dallas, Texas 09/30/2013 (Financialstrend) – Annaly Capital Management, Inc. (NYSE:NLY) on September 27, announced new options being made available for investors starting that day. These are set to expire on December 21st. The markets did not show any appreciable reaction to the announcement. It trade volume for the day was 11.13 million which was lower than its average daily trading volume of 12 million. The share price of this fund was down 3.49% on September 27, compared to previous day close of $12.05 per share.
Rate cuts bite into its share price
This most recent dip in stock value can be traced back to September 20, when a 12.5% cut in dividend payout was announced by the firm for the three reminder months of the year. In spite of this cut, the company has a strong dividend payout track record. Over the past 12 months trailing period, the dividend yield from NLY is a healthy 13.76% or a dividend payout of $1.6 per share.
Stock looses steam on the browsers
In spite of its track record, the markets showed collective thumbs down to the stock. It is down 2.5% in value over the past week and has shed over 7.5% of its value over the past 90 days. It has a market capitalization of close to $11 billion with total of $3.37 billion on a 12 month trailing period basis. Analysts opine that the recent softness seen in REIT is in response to Federal Reserve’s “no taper for now decision” and not specific to the fundamentals of the company. In fact it has recorded gross margins of 76% and an operating margins of 68% over the past twelve trailing period. The current share price is trading just 9.4% up from its 52 week low price and is trading 25% below its 52 week high valuation.