Sterne Agee Reiterates Neutral Rating on American Capital Agency Corp. (AGNC)

Sterne Agee is out with a research report this morning, where it reiterates its Neutral rating on American Capital Agency Corp.

; it did not provide a price target for the stock. The Sterne Agee analysts cited the company's recently reported quarterly earnings, which were mixed. AGNC reported 3Q EPS of $1.69. Operating EPS was $1.11 excluding the impact of security gains and other items with a combined value of $0.59 per share and accrued excise tax of $0.01 per share. The analysts noted the company's $1.40 dividend, saying, “The company's ability to sustain a dividend above its operating EPS is a function of two things 1) the inclusion in most quarters of security gains and 2) undistributed taxable income from past periods.”