AGNC Investment (NASDAQ:AGNC) Stock, Quote.Headers.trade-ideas

AGNC Investment

AGNC Investment Corp is a real estate investment trust that invests in agency residential mortgage-backed securities. The firm's asset portfolio is comprised of residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by a U.S. Government-sponsored enterprise, such as the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, or by a U.S. Government agency, such as the Government National Mortgage Association. It also invests in other types of mortgage and mortgage-related residential and commercial mortgage-backed securities or other investments in or related to, the housing, mortgage or real estate markets.

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AGNC

Wall Street&#39;s Most Accurate Analysts Give Their Take On 3 Financials Stocks With Over 12% Dividend Yields

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AGNC Investment Corp. (NASDAQ: AGNC) is in the limelight with the Federal Reserve&#39;s decision to begin an interest rate cut this month. The Fed has kept its influential lending rate at its highest level at 5.25-5.50% since 2001 to tame inflation. The inflation has been gradually cooling down.

Fed Rate Cut Round the Corner: Should You Make a Bet on AGNC Stock?

AGNC Investment Corp. (NASDAQ: AGNC) stock rallied 11.8% in the past three months. The company&#39;s shares have outpaced the 7.6% rally registered by the industry it belongs to and 9.2% growth of the Zacks S&amp;P 500 composite.

AGNC Investment Up 11.8% in 3 Months: Is It Worth Buying?

AGNC Investment Corp

AGNC Investment Corp. - Depositary Shares Each Representing a 1/1,000th Interest in a Share of 7.75% Series G Fixed-Rate Reset Cumulative Redeemable Preferred Stock

AGNC Investment Corp. - Depositary Shares rep 6.875% Series D Fixed-to-Floating Cumulative Redeemable Preferred Stock

AGNC Investment Corp. - Depositary Shares Each Representing a 1/1,000th Interest in a Share of 7.00% Series C Fixed-To-Floating Rate Cumulative Redeemable Preferred Stock

AGNC Investment Corp. - Depositary Shares, each representing a 1/1,000th interest in a share of Series E Fixed-to-Floating Cumulative Redeemable Preferred Stock

AGNC Investment Corp. - Depositary Shares Each Representing a 1/1,000th Interest in a Share of 6.125% Series F Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock

Wells Fargo analyst Donald Fandetti upgrades AGNC Investment (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AGNC#NASDAQ">AGNC</a>) from Equal-Weight to Overweight and raises the price target from $10 to $12.

Upgrades

Wells Fargo Upgrades AGNC Investment to Overweight, Raises Price Target to $12

During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a<a href="https://www.benzinga.com/yield-investments"> high dividend payout</a>.
Benzinga readers can review the latest analyst takes on their favorite stocks by visiting <a href="https://www.benzinga.com/analyst-stock-ratings">Analyst Stock Ratings</a> page. Traders can sort through Benzinga's extensive database of analyst ratings, including <a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/09/28888638/exclusive-study-finds-benzinga-analyst-ratings-data-yields-market-beating-strategie">by analyst accuracy</a>.
Below are the ratings of the most accurate analysts for three high-yielding stocks in the financials sector.
<h3 class="wp-block-heading">Invesco Mortgage Capital Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVR#NYSE">IVR</a>)</h3>
<ul>
<li>Dividend Yield: 17.51%</li>
<li>JMP Securities analyst Trevor Cranston reiterated a Market Perform rating on Aug. 28. This analyst has an accuracy rate of 64%.</li>
<li>UBS analyst Douglas Harter initiated coverage on the stock with a Neutral rating and a price target of $8 on Dec. 6, 2023. This analyst has an accuracy rate of 63%.</li>
<li>Recent News: On Aug. 8, the company posted a second-quarter net loss per common share of 38 cents per share, versus net income of 49 cents per share in the first quarter of 2024.</li>
<li>Benzinga Pro's real-time newsfeed <a href="https://pro.benzinga.com/dashboard">alerted to latest IVR news</a></li>
</ul>
<h3 class="wp-block-heading">AGNC Investment Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AGNC#NASDAQ">AGNC</a>)</h3>
<ul>
<li>Dividend Yield: 13.51%</li>
<li>RBC Capital analyst Kenneth Lee maintained an Outperform rating and raised the price target from $10 to $11 on Aug. 16. This analyst has an accuracy rate of 68%</li>
<li>Keefe, Bruyette &amp; Woods analyst Bose George maintained an Outperform rating and raised the price target from $10 to $10.25 on July 25. This analyst has an accuracy rate of 72%.</li>
<li>Recent News: On Sept. 13, AGNC Investment said its Board of Directors declared a cash dividend of 12 cents per share of common stock for Sept.</li>
<li>Benzinga Pro&#8217;s charting tool helped identify the <a href="https://pro.benzinga.com/dashboard">trend in AGNC stock</a>.</li>
</ul>
<h3 class="wp-block-heading">Two Harbors Investment Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TWO#NYSE">TWO</a>)</h3>
Dividend Yield: 12.78%
<ul>
<li>JMP Securities analyst Trevor Cranston reiterated a Market Outperform rating with a price target of $15 on Aug. 28. This analyst has an accuracy rate of 64%.</li>
<li>JP Morgan analyst Richard Shane maintained a Neutral rating and increased the price target from $12.5 to $13 on July 16. This analyst has an accuracy rate of 68%.</li>
<li>Recent News: On Sept. 18, Two Harbors Investment announced Appointments of Head of Servicing at RoundPoint and Chief Technology Officer.</li>
<li>Benzinga Pro&#8217;s signals feature notified of a potential <a href="https://pro.benzinga.com/dashboard">breakout in TWO shares</a>.</li>
</ul>

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Read More: 
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<li><a href="https://www.benzinga.com/news/earnings/24/09/40925678/fedex-gears-up-for-q1-print-here-are-the-recent-forecast-changes-from-wall-streets-most-accurate-an">FedEx Gears Up For Q1 Print; Here Are The Recent Forecast Changes From Wall Street&#8217;s Most Accurate Analysts</a></li>
</ul>

Wall Street's Most Accurate Analysts Give Their Take On 3 Financials Stocks With Over 12% Dividend Yields

This whale alert can help traders discover the next big trading opportunities.
Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.
Traders will search for circumstances when the market estimation of an option diverges heavily from its normal worth. High amounts of trading activity could push option prices to exaggerated or underestimated levels. 
Here's the list of options activity happening in today's session: 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>AGNC</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$10.00</td>
<td>$95.6K</td>
<td>68.9K</td>
<td>6.8K</td>
</tr>
<tr>
<td>HOOD</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>09/20/24</td>
<td>$23.00</td>
<td>$49.5K</td>
<td>15.2K</td>
<td>2.7K</td>
</tr>
<tr>
<td>WFC</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>09/20/24</td>
<td>$52.50</td>
<td>$49.7K</td>
<td>13.0K</td>
<td>2.2K</td>
</tr>
<tr>
<td>SQ</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>11/01/24</td>
<td>$67.00</td>
<td>$900.0K</td>
<td>0</td>
<td>2.0K</td>
</tr>
<tr>
<td>COIN</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/17/25</td>
<td>$150.00</td>
<td>$112.9K</td>
<td>1.0K</td>
<td>1.2K</td>
</tr>
<tr>
<td>AIG</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>11/15/24</td>
<td>$77.50</td>
<td>$175.0K</td>
<td>793</td>
<td>1.0K</td>
</tr>
<tr>
<td>AFRM</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>10/18/24</td>
<td>$55.00</td>
<td>$56.9K</td>
<td>5.5K</td>
<td>787</td>
</tr>
<tr>
<td>KKR</td>
<td>CALL</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>01/17/25</td>
<td>$145.00</td>
<td>$35.0K</td>
<td>546</td>
<td>253</td>
</tr>
<tr>
<td>BX</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/17/25</td>
<td>$150.00</td>
<td>$30.0K</td>
<td>2.7K</td>
<td>118</td>
</tr>
<tr>
<td>V</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>11/01/24</td>
<td>$290.00</td>
<td>$45.9K</td>
<td>6</td>
<td>52</td>
</tr>
</tbody>
</table>

<h2>Explanation</h2>
These itemized elaborations have been created using the accompanying table. 
• Regarding AGNC (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AGNC#NASDAQ">AGNC</a>), we observe a call option sweep with bearish sentiment. It expires in 123 day(s) on January 17, 2025. Parties traded 1518 contract(s) at a $10.00 strike. This particular call needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $95.6K, with a price of $63.0 per contract. There were 68988 open contracts at this strike prior to today, and today 6871 contract(s) were bought and sold. 
• Regarding HOOD (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOOD#NASDAQ">HOOD</a>), we observe a call option sweep with bullish sentiment. It expires in 4 day(s) on September 20, 2024. Parties traded 1500 contract(s) at a $23.00 strike. This particular call needed to be split into 23 different trades to become filled. The total cost received by the writing party (or parties) was $49.5K, with a price of $33.0 per contract. There were 15281 open contracts at this strike prior to today, and today 2755 contract(s) were bought and sold. 
• For WFC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>), we notice a put option sweep that happens to be bullish, expiring in 4 day(s) on September 20, 2024. This event was a transfer of 1772 contract(s) at a $52.50 strike. This particular put needed to be split into 31 different trades to become filled. The total cost received by the writing party (or parties) was $49.7K, with a price of $28.0 per contract. There were 13085 open contracts at this strike prior to today, and today 2253 contract(s) were bought and sold. 
• For SQ (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SQ#NYSE">SQ</a>), we notice a put option trade that happens to be bullish, expiring in 46 day(s) on November 1, 2024. This event was a transfer of 2000 contract(s) at a $67.00 strike. The total cost received by the writing party (or parties) was $900.0K, with a price of $450.0 per contract. There were 0 open contracts at this strike prior to today, and today 2001 contract(s) were bought and sold. 
• For COIN (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>), we notice a call option sweep that happens to be bullish, expiring in 123 day(s) on January 17, 2025. This event was a transfer of 34 contract(s) at a $150.00 strike. This particular call needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $112.9K, with a price of $3321.0 per contract. There were 1074 open contracts at this strike prior to today, and today 1295 contract(s) were bought and sold. 
• For AIG (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AIG#NYSE">AIG</a>), we notice a call option sweep that happens to be bullish, expiring in 60 day(s) on November 15, 2024. This event was a transfer of 1000 contract(s) at a $77.50 strike. This particular call needed to be split into 43 different trades to become filled. The total cost received by the writing party (or parties) was $175.0K, with a price of $175.0 per contract. There were 793 open contracts at this strike prior to today, and today 1002 contract(s) were bought and sold. 
• For AFRM (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AFRM#NASDAQ">AFRM</a>), we notice a call option sweep that happens to be bullish, expiring in 32 day(s) on October 18, 2024. This event was a transfer of 633 contract(s) at a $55.00 strike. This particular call needed to be split into 36 different trades to become filled. The total cost received by the writing party (or parties) was $56.9K, with a price of $90.0 per contract. There were 5529 open contracts at this strike prior to today, and today 787 contract(s) were bought and sold. 
• For KKR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KKR#NYSE">KKR</a>), we notice a call option trade that happens to be neutral, expiring in 123 day(s) on January 17, 2025. This event was a transfer of 100 contract(s) at a $145.00 strike. The total cost received by the writing party (or parties) was $35.0K, with a price of $350.0 per contract. There were 546 open contracts at this strike prior to today, and today 253 contract(s) were bought and sold. 
• Regarding BX (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BX#NYSE">BX</a>), we observe a call option sweep with bullish sentiment. It expires in 123 day(s) on January 17, 2025. Parties traded 21 contract(s) at a $150.00 strike. This particular call needed to be split into 14 different trades to become filled. The total cost received by the writing party (or parties) was $30.0K, with a price of $1434.0 per contract. There were 2771 open contracts at this strike prior to today, and today 118 contract(s) were bought and sold. 
• For V (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/V#NYSE">V</a>), we notice a call option sweep that happens to be bullish, expiring in 46 day(s) on November 1, 2024. This event was a transfer of 50 contract(s) at a $290.00 strike. This particular call needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $45.9K, with a price of $920.0 per contract. There were 6 open contracts at this strike prior to today, and today 52 contract(s) were bought and sold. 
Options Alert Terminology 
 - Call Contracts: The right to buy shares as indicated in the contract. 
 - Put Contracts: The right to sell shares as indicated in the contract. 
 - Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it. 
 - Premium/Option Price: The price of the contract. 
For more information, visit our <a href="https://pro.benzinga.com/blog/how-to-understand-option-alerts/">Guide to Understanding Options Alerts</a> or read <a href="https://www.benzinga.com/markets/options">more about unusual options activity</a>. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Options

AFRM

COIN

HOOD

10 Financials Stocks With Whale Alerts In Today's Session

AGNC Investment Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/agnc#NASDAQ">AGNC</a>) is in the limelight with the Federal Reserve&#39;s decision to begin an interest rate cut this month. The Fed has kept its influential lending rate at its highest level at 5.25-5.50% since 2001 to tame inflation. The inflation has been gradually cooling down.
On Aug. 23, Fed Chairman Jerome Powell stated that the central bank has &quot;ample room&quot; to maneuver as policy enters its next phase. He stressed that the timing and speed of reduction will &quot;depend on incoming data.&quot; With this, as per the CME Fedwatch tool, the market participants are now predicting a 61% chance of a 50 basis point rate cut this month compared with a 26% chance predicted a month ago.
AGNC is one of the mortgage real estate investment trust (mREIT) stocks burdened by the higher-interest-rate environment. With an improving market scenario and rate cut around the corner, investors are turning optimistic about AGNC stock. In the past six months, the shares of AGNC stock have rallied 15.5% compared with the industry&#39;s growth of 6%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/55/76589.jpg?v=1463796336" />
Image Source: Zacks Investment Research
The stock is also trading above the 50-day SMA, representing a bullish trend.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/01/76583.jpg?v=1226237945" />
Image Source: Zacks Investment Research
In the current situation, should investors scoop up AGNC Investment stock? Before making any hasty decision, it would be prudent to take a look at the reasons behind the surge, the stock&#39;s growth prospects as well as risks (if any).
<h2>How Rate Cut Benefits AGNC?</h2>
AGNC&#39;s financials have been adversely impacted since early 2022, when the Fed first began its interest rate hiking cycle. The negative return and falling profitability raised concerns about the company&#39;s Investment&#39;s capacity to sustain its high-yielding payment.
At the end of the six months ended June 30, 2024, AGNC&#39;s interest income grew 54% compared with the six months ended June 30, 2022, thanks to higher rates on its MBS portfolio. However, its borrowing costs rose significantly, as interest expenses ballooned from $107 million to $1.4 billion during the same period. As a result, this mREIT had a net interest loss of $33 million at the end of six months ended June 30, 2024, against $763 million of net interest income registered at the end of six months ended June 30, 2022.
As long-term bond yields have declined with the Fed&#39;s decision of an interest rate cut, this resulted in a decline in mortgage rates. The average rate on the 30-year fixed-rate mortgage dropped to 6.35% as of Aug. 29 from 6.46% a week ago. A year ago, the metric averaged 7.18%.
As rate cuts begin, it will likely increase net interest spreads. This will ease earnings pressure for AGNC, as it is currently reeling under high funding costs. This will help the company to increase its dividend payout.
Also, the company has solid access to attractive funding across a broad spectrum of counterparties and financing conditions. As a result, it has flexibility in the opportunistic enhancement of its portfolio. AGNC Investment&#39;s liquidity as of June 30, 2024, including cash and unencumbered Agency assets, was $5.3 billion. This should alleviate some concerns about its capacity to maintain its payout.
High rates also impacted the book value of AGNC&#39;s investments due to &quot;spread risk.&quot; From June 30, 2022, to June 30, 2024, the company&#39;s book value per share has declined 36.8%.
Nonetheless, the long-term outlook for Agency mortgage-backed securities (MBS) looks favorable. Agency MBS spreads have remained in a range that supports positive long-term risk-adjusted returns for leveraged investors like AGNC. At these levels, Agency MBS provides a significant incremental yield over both U.S. Treasuries and investment-grade corporate paper, which will continue to drive demand for Agency MBS. Given the favorable supply-demand dynamic for Agency MBS and the improving monetary policy outlook, the prospects for AGNC look favorable.
<h2>AGNC&#39;s Impressive Payout</h2>
This publicly traded mREIT offers a lucrative dividend yield.
As the expected rate cut will support AGNC&#39;s financials, the company can continue to pay dividends to its shareholders.
Income-seeking investors have a large appetite for REIT stocks, as U.S. law requires REITs to distribute 90% of their annual taxable income in the form of dividends. As for AGNC, the company has a record of paying monthly dividends.
AGNC&#39;s current dividend yield is 14.01%. This is impressive compared with the industry&#39;s average of 11.2% and attracts investors as it represents a steady income stream.
AGNC is not the only dividend-paying stock among Zacks Industry &ndash; REIT and Equity Trust. Stocks like Annaly Capital Management (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nly#NYSE">NLY</a>) and Ellington Credit Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/earn#NYSE">EARN</a>) are also providing investors with solid dividend options.
NLY has an annual dividend yield of 12.9%, while EARN has a dividend yield of 13.9%.
Coming back to AGNC, dividends aside, it has a share repurchase plan in place. In 2022 and 2021, AGNC Investment repurchased 4.7 million shares and 17.7 million shares for $51 million and $281 million, respectively. With no repurchases done in 2023 and the first half of 2024, $1 billion remained under this program for repurchase through Dec. 31, 2024. It plans to buy back shares only when the repurchase price is lower than the then-current estimate of tangible net book value per common share. The buyback program will enable it to respond to the volatility in its stock and boost shareholders&#39; wealth.
<h2>Factors to Consider Before Choosing AGNC</h2>
The ultra-high dividend yield and regular payout look eye-catching for most investors watching for high-income funds. However, in April 2020, AGNC slashed its dividend to 12 cents per share from 16 cents and continued to pay the same amount in later periods. Also, the company has a history of cutting its dividend.
Further, any volatility in the mortgage market, unfavorable changes in the shape of the yield curve, interest-rate volatility and deterioration of the generic financial conditions may affect the performance of the company&#39;s investments.
Also, analyst seems to be bearish about AGNC. Over the past 60 days, the Zacks Consensus Estimate for 2024 and 2025 earnings has moved downward.
Estimate Revision Trend
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/b3/76579.jpg?v=474796960" />
Image Source: Zacks Investment Research
<h2>Unlocking Valuation for AGNC</h2>
From a valuation standpoint, AGNC Investment appears expensive relative to the industry. The company is currently trading at a discount with a forward 12-month Price-to-Tangible Book (P/TB) multiple of 1.16X, above the industry average of 0.99X.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/9d/76581.jpg?v=1910096254" />
Image Source: Zacks Investment Research
The stock is more expensive than its peer, NLY&#39;s current forward 12-month P/TB of 1.06X. AGNC is trading at a discount to EARN&#39;s current forward 12-month P/E of 0.96X.
<h2>Should You Make a Bet on AGNC Now?</h2>
The Fed&#39;s adjustment in monetary policy should benefit AGNC. A rate-cutting cycle should boost its net interest spread and the book value of its portfolio. That could be a strong tailwind for the company in the upcoming period.
However, volatility in the mortgage market, unfavorable changes in the shape of the yield curve, and deterioration of the generic financial conditions may affect the AGNC&#39;s performance. Moreover, the company has a track record of lowering dividends during stressful times.
To conclude, investors interested in AGNC should wait for a better entry point, considering its premium valuation. They should analyze the upcoming interest rate changes and market volatility closely for a more appropriate entry point. The stock&#39;s Zacks Rank #3 (Hold) supports our thesis.
<a href="https://www.zacks.com/stock/news/2331645/fed-rate-cut-round-the-corner-should-you-make-a-bet-on-agnc-stock?cid=CS-BENZ-FT-analyst_blog|most_popular_stocks-2331645">To read this article on Zacks.com click here.</a>

AGNC Investment's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGNC#NYSE">AGNC</a>) short percent of float has fallen 8.48% since its last report. The company recently reported that it has 43.71 million shares sold short, which is 5.61% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.82 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>AGNC Investment Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1725386416_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for AGNC Investment has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing AGNC Investment's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, AGNC Investment's peer group average for short interest as a percentage of float is 7.27%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

How Is The Market Feeling About AGNC Investment?

This whale alert can help traders discover the next big trading opportunities.
Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.
Traders often look for circumstances when the market estimation of an option diverges away from its normal worth. Abnormal amounts of trading activity could push option prices to hyperbolic or underperforming levels. 
Here's the list of options activity happening in today's session: 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>AFRM</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>09/20/24</td>
<td>$50.00</td>
<td>$35.4K</td>
<td>7.2K</td>
<td>13.7K</td>
</tr>
<tr>
<td>C</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>10/18/24</td>
<td>$65.00</td>
<td>$29.2K</td>
<td>20.5K</td>
<td>2.0K</td>
</tr>
<tr>
<td>AGNC</td>
<td>CALL</td>
<td>SWEEP</td>
<td>NEUTRAL</td>
<td>10/11/24</td>
<td>$10.00</td>
<td>$53.0K</td>
<td>0</td>
<td>1.5K</td>
</tr>
<tr>
<td>WFC</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>12/20/24</td>
<td>$60.00</td>
<td>$62.2K</td>
<td>1.7K</td>
<td>928</td>
</tr>
<tr>
<td>LC</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>01/16/26</td>
<td>$12.00</td>
<td>$75.9K</td>
<td>1.3K</td>
<td>854</td>
</tr>
<tr>
<td>CRBG</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>09/20/24</td>
<td>$29.00</td>
<td>$26.6K</td>
<td>1.0K</td>
<td>403</td>
</tr>
<tr>
<td>AXP</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>10/18/24</td>
<td>$270.00</td>
<td>$38.1K</td>
<td>1.1K</td>
<td>341</td>
</tr>
<tr>
<td>COIN</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>12/20/24</td>
<td>$210.00</td>
<td>$54.0K</td>
<td>1.0K</td>
<td>96</td>
</tr>
<tr>
<td>PYPL</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>12/19/25</td>
<td>$72.50</td>
<td>$41.2K</td>
<td>215</td>
<td>81</td>
</tr>
<tr>
<td>GS</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>10/18/24</td>
<td>$535.00</td>
<td>$31.0K</td>
<td>101</td>
<td>57</td>
</tr>
</tbody>
</table>

<h2>Explanation</h2>
These bullet-by-bullet explanations have been constructed using the accompanying table. 
• Regarding AFRM (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AFRM#NASDAQ">AFRM</a>), we observe a call option trade with bullish sentiment. It expires in 21 day(s) on September 20, 2024. Parties traded 499 contract(s) at a $50.00 strike. The total cost received by the writing party (or parties) was $35.4K, with a price of $71.0 per contract. There were 7297 open contracts at this strike prior to today, and today 13760 contract(s) were bought and sold. 
• Regarding C (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>), we observe a call option sweep with bearish sentiment. It expires in 49 day(s) on October 18, 2024. Parties traded 250 contract(s) at a $65.00 strike. This particular call needed to be split into 7 different trades to become filled. The total cost received by the writing party (or parties) was $29.2K, with a price of $117.0 per contract. There were 20565 open contracts at this strike prior to today, and today 2061 contract(s) were bought and sold. 
• Regarding AGNC (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AGNC#NASDAQ">AGNC</a>), we observe a call option sweep with neutral sentiment. It expires in 42 day(s) on October 11, 2024. Parties traded 1559 contract(s) at a $10.00 strike. This particular call needed to be split into 6 different trades to become filled. The total cost received by the writing party (or parties) was $53.0K, with a price of $34.0 per contract. There were 0 open contracts at this strike prior to today, and today 1561 contract(s) were bought and sold. 
• Regarding WFC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>), we observe a put option sweep with bullish sentiment. It expires in 112 day(s) on December 20, 2024. Parties traded 150 contract(s) at a $60.00 strike. This particular put needed to be split into 4 different trades to become filled. The total cost received by the writing party (or parties) was $62.2K, with a price of $415.0 per contract. There were 1701 open contracts at this strike prior to today, and today 928 contract(s) were bought and sold. 
• Regarding LC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LC#NYSE">LC</a>), we observe a call option sweep with bearish sentiment. It expires in 504 day(s) on January 16, 2026. Parties traded 253 contract(s) at a $12.00 strike. This particular call needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $75.9K, with a price of $300.0 per contract. There were 1373 open contracts at this strike prior to today, and today 854 contract(s) were bought and sold. 
• Regarding CRBG (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRBG#NYSE">CRBG</a>), we observe a put option sweep with bearish sentiment. It expires in 21 day(s) on September 20, 2024. Parties traded 403 contract(s) at a $29.00 strike. This particular put needed to be split into 31 different trades to become filled. The total cost received by the writing party (or parties) was $26.6K, with a price of $70.0 per contract. There were 1000 open contracts at this strike prior to today, and today 403 contract(s) were bought and sold. 
• For AXP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXP#NYSE">AXP</a>), we notice a call option sweep that happens to be bearish, expiring in 49 day(s) on October 18, 2024. This event was a transfer of 83 contract(s) at a $270.00 strike. This particular call needed to be split into 18 different trades to become filled. The total cost received by the writing party (or parties) was $38.1K, with a price of $460.0 per contract. There were 1139 open contracts at this strike prior to today, and today 341 contract(s) were bought and sold. 
• For COIN (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>), we notice a call option sweep that happens to be bullish, expiring in 112 day(s) on December 20, 2024. This event was a transfer of 29 contract(s) at a $210.00 strike. This particular call needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $54.0K, with a price of $1865.0 per contract. There were 1055 open contracts at this strike prior to today, and today 96 contract(s) were bought and sold. 
• For PYPL (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>), we notice a put option trade that happens to be bearish, expiring in 476 day(s) on December 19, 2025. This event was a transfer of 40 contract(s) at a $72.50 strike. The total cost received by the writing party (or parties) was $41.2K, with a price of $1030.0 per contract. There were 215 open contracts at this strike prior to today, and today 81 contract(s) were bought and sold. 
• For GS (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>), we notice a call option trade that happens to be bearish, expiring in 49 day(s) on October 18, 2024. This event was a transfer of 44 contract(s) at a $535.00 strike. The total cost received by the writing party (or parties) was $31.0K, with a price of $705.0 per contract. There were 101 open contracts at this strike prior to today, and today 57 contract(s) were bought and sold. 
Options Alert Terminology 
 - Call Contracts: The right to buy shares as indicated in the contract. 
 - Put Contracts: The right to sell shares as indicated in the contract. 
 - Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it. 
 - Premium/Option Price: The price of the contract. 
For more information, visit our <a href="https://pro.benzinga.com/blog/how-to-understand-option-alerts/">Guide to Understanding Options Alerts</a> or read <a href="https://www.benzinga.com/markets/options">more news on unusual options activity</a>. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

CRBG

PYPL

JMP Securities analyst Steven Delaney reiterates AGNC Investment (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AGNC#NASDAQ">AGNC</a>) with a Market Perform.

Reiteration

JMP Securities Reiterates Market Perform on AGNC Investment

RBC Capital analyst Kenneth Lee maintains AGNC Investment (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AGNC#NASDAQ">AGNC</a>) with a Outperform and raises the price target from $10 to $11.

RBC Capital Maintains Outperform on AGNC Investment, Raises Price Target to $11

AGNC Investment Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/agnc#NASDAQ">AGNC</a>) stock rallied 11.8% in the past three months. The company&#39;s shares have outpaced the 7.6% rally registered by the industry it belongs to and 9.2% growth of the Zacks S&amp;P 500 composite.
<h3>Three Months Price Performance</h3>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/c4/73108.jpg?v=2012552605" />
Image Source: Zacks Investment Research
This publicly-traded mortgage real estate investment trust (mREIT) company offers favorable long-term stockholder returns with a huge dividend yield, which may compel many investors to buy the stock. However, the stock experienced some headwinds in the second quarter of 2024, which might raise concerns about its dividend sustainability.
Currently, the stock is trading 5% down from its 52-week high of $10.57 hit on Jul 17. Is now the right time to invest? To answer this, it&#39;s essential to delve into the details and evaluate various factors at play.
<h3>Q2 Result: A Shift in Momentum</h3>
AGNC Investment&#39;s financial results dipped in the second quarter. The company reported a comprehensive loss of 13 cents per share against 48 cents of comprehensive income registered in the first quarter. Net spread and dollar roll income of 53 cents was down from 58 cents in the previous quarter.
Meanwhile, AGNC&#39;s tangible book value per share fell 5%. This reduction, together with dividend payments of 36 cents for the quarter, resulted in a negative 0.9% economic return on tangible common equity for the period.
The negative return and falling profitability may raise worries about AGNC Investment&#39;s capacity to sustain its high-yielding payment. The company&#39;s leverage ratio increased from 7.1 in the first quarter to 7.4 in the second quarter, which could exacerbate concerns. Despite this, the company concluded the period with strong liquidity of $5.3 billion, which should alleviate some concerns about its capacity to maintain its dividend in the short term.
<h3>Impressive Payout</h3>
Income-seeking investors have a large appetite for REIT stocks, as U.S. law requires REITs to distribute 90% of their annual taxable income in the form of dividends. As for AGNC, the company has a record of paying monthly dividends.
AGNC&#39;s current dividend yield is 15.1%. This is impressive compared with the industry&#39;s average of 10.3% and attracts investors as it represents a steady income stream.
AGNC is not the only dividend-paying stock among Zacks Industry &ndash; REIT and Equity Trust. Stocks like Annaly Capital Management (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nly#NYSE">NLY</a>) and Ellington Credit Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/earn#NYSE">EARN</a>) are also providing investors with solid dividend options.
NLY has an annual dividend yield of 13.1%, while EARN has a dividend yield of 13.7%.
Coming back to AGNC, dividends aside, it has a share repurchase plan in place. In 2022 and 2021, AGNC Investment repurchased 4.7 million shares and 17.7 million shares for $51 million and $281 million, respectively. With no repurchases done in the first half of 2024, $1 billion remained under this program for repurchase through Dec 31, 2024. It plans to buy back shares only when the repurchase price is lower than the then-current estimate of tangible net book value per common share. The buyback program will enable it to respond to the volatility in its stock and boost shareholders&#39; wealth.
<h3>Favorable Long-Term Outlook</h3>
AGNC Investment primarily focuses on leveraged investments in Agency residential mortgage-backed securities. That includes residential mortgage pass-through securities and collateralized mortgage obligations. A U.S. Government agency or a U.S. Government-sponsored enterprise&nbsp;guarantees the principal and interest payments for such investments.
AGNC Investment borrows against its investment portfolio under a master repurchase agreement, which provides short-term financing. The company expects to make a profit and pay the dividend from the net interest income (NII), which is the difference between interest earned on investments and its cost of borrowing.
The long-term outlook for Agency MBS remains favorable. Agency MBS spreads have remained in a range that supports positive long-term risk-adjusted returns for leveraged investors like AGNC. At these levels, Agency MBS provides a significant incremental yield over both US Treasuries and investment-grade corporate paper, which will continue to drive demand for Agency MBS. Given the positive supply-demand dynamic for Agency MBS and the improved monetary policy outlook, both the present returns and future prospects for AGNC look favorable.
<h3>2024 Estimates Down</h3>
Over the past month, the Zacks Consensus Estimate for 2024 and 2025 earnings has moved downward, reflecting analyst bearish sentiments.
<h3>Estimate Revision Trend</h3>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/2b/73107.jpg?v=1376659545" />
Image Source: Zacks Investment Research
<h3>Unlocking Valuation</h3>
From a valuation standpoint, AGNC Investment appears inexpensive relative to the industry. The company is currently trading at a discount with a forward 12-month P/E multiple of 4.95X, significantly below the industry average of 8.44X. The stock is also significantly cheaper than its peer NLY and EARN current forward 12-month P/E of 7.41X and 6.65X, respectively.
<h3>Price-to-Earnings (Forward 12 Months)</h3>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/5a/73109.jpg?v=872049456" />
Image Source: Zacks Investment Research
<h3>Consider Waiting for a Better Entry Point</h3>
The ultra-high dividend yield and regular payout look eye-catching for most investors watching for high-income funds. However, AGNC slashed its dividend to 12 cents from 16 cents in April 2020 and continued to pay the same amount in later periods. The company also has a history of cutting its dividend.
AGNC uses leverage to scoop returns and give dividends to investors, which act as an advantage and a disadvantage for the company, depending on the market scenario. Increasing interest rates may have two drawbacks. As a leveraged corporation, the company finds it challenging to hedge its portfolio due to unstable and fluctuating interest rates. Also, high rates enable it to enhance its portfolio yield by investing in mortgages with higher interest rates.
At the recently concluded two-day FOMC meeting, the Federal Reserve left the interest rates unchanged at a 23-year high of 5.25%-5.50%. Per the press conference following the meeting, the central bank has kept the doors open for the September rate cut. With the inflation numbers cooling down, market participants are expecting more cuts this year. This will turn out to be favorable for AGNC.
Yet, any volatility in the mortgage market, unfavorable change in the shape of the yield curve, interest-rate volatility and deterioration of the generic financial conditions may affect the performance of the company&#39;s investments. In the past two years, there has been significant volatility in the financial markets. The increase in interest rates resulted in higher debt servicing costs and underperformance of fixed-income assets.
Considering the pros and cons of AGNC, we can conclude that investors should refrain from rushing to buy AGNC right now, just banking on its lucrative dividend. Instead, they should analyze the upcoming interest rate changes and the mortgage market closely for a more appropriate entry point. The stock&#39;s Zacks Rank #3 (Hold) supports our thesis.
<a href="https://www.zacks.com/stock/news/2314516/agnc-investment-agnc-up-11-8-in-3-months-is-it-worth-buying?cid=CS-BENZ-FT-analyst_blog|most_popular_stocks-2314516">To read this article on Zacks.com click here.</a>

Keefe, Bruyette &amp; Woods analyst Bose George maintains AGNC Investment (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AGNC#NASDAQ">AGNC</a>) with a Outperform and raises the price target from $10 to $10.25.

Keefe, Bruyette & Woods Maintains Outperform on AGNC Investment, Raises Price Target to $10.25

Maxim Group analyst Michael Diana downgrades AGNC Investment (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AGNC#NASDAQ">AGNC</a>) from Buy to Hold.

Downgrades

Maxim Group Downgrades AGNC Investment to Hold

Compass Point analyst Merrill Ross maintains AGNC Investment (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AGNC#NASDAQ">AGNC</a>) with a Buy and raises the price target from $10.25 to $11.

Compass Point Maintains Buy on AGNC Investment, Raises Price Target to $11

AGNC Investment Corp.&#39;s (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/agnc#NASDAQ">AGNC</a>) second-quarter 2024 net spread and dollar roll income per common share (excluding estimated &quot;catch-up&quot; premium amortization benefit) of 53 cents matched the Zacks Consensus Estimate. However, the bottom line declined from the 67 cents reported in the previous quarter.
Adjusted net interest and dollar roll income of $482 million moved down from $496 million in the previous quarter.
The company reported a second-quarter comprehensive loss per common share of 13 cents against comprehensive income per common share of 48 cents reported in the prior quarter.
<h3>Inside the Headlines</h3>
Net interest expenses were $3 million compared with $30 million in the prior quarter. The Zacks Consensus Estimate was pegged at $404 million.
AGNC Investment&#39;s average asset yield on its portfolio was 4.69% in the second quarter, up from 4.56% reported in the prior quarter.
The combined weighted average cost of funds, inclusive of interest rate swap, was 2% compared with 1.58% in the prior quarter.
The average net interest spread (excluding estimated &quot;catch-up&quot; premium amortization benefits) was 2.69%, down from 2.98% in the previous quarter.
As of Jun 30, 2024, AGNC&#39;s average tangible net book value &quot;at risk&quot; leverage ratio was 7.2X compared with 7X in the prior quarter.
In the second quarter, the company&#39;s investment portfolio bore an average actual constant prepayment rate of 7.1%, up from 5.7% in the previous quarter.
As of Jun 30, 2024, tangible net book value per common share (BVPS) was $8.40, down from $8.84 as of Mar 31, 2024.
The economic return on tangible common equity was negative 0.9% compared with 5.7% in the previous quarter. This included a dividend per share of 36 cents and a decline of 44 cents in tangible net BVPS.
As of Jun 30, 2024, the company&#39;s investment portfolio aggregated $66 billion. This included $59.7 billion of Agency mortgage-backed securities, $5.3 million of net forward purchases of Agency MBS in the to-be-announced market, and $1 billion of credit risk transfer and non-Agency securities and other mortgage credit investments.
As of Jun 30, 2024, AGNC Investment&#39;s cash and cash equivalents totaled $530 million, up from $505 billion as of Mar 31, 2024.
<h3>Dividend Update</h3>
In the second quarter, AGNC Investment announced a dividend of 12 cents per share each for April, May and June. Management declared $13.4 billion in common stock dividends or $47.92 per share since its initial public offering in May 2008 through the second quarter of 2024.
<h3>Conclusion</h3>
AGNC&#39;s second-quarter results benefited from an increase in asset yields. To navigate the monetary policy transition, the company has defensively positioned itself with prudent asset-selection efforts and timely portfolio adjustment. However, lower net interest spread and increased weighted average cost of funds acted as headwinds.
<div class="chart_embed">
<h3>AGNC Investment Corp. Price, Consensus and EPS Surprise</h3>
<img alt="AGNC Investment Corp. Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/59/1721740775.png" style="height:265px; width:576px" title="" />
AGNC Investment Corp. price-consensus-eps-surprise-chart | AGNC Investment Corp. Quote
</div>
AGNC Investment currently carries a Zacks Rank #3 (Hold).
<h3>Upcoming Release Dates of Other REITs</h3>
Annaly Capital Management, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nly#NYSE">NLY</a>) is slated to announce second-quarter 2024 results on Jul 24.
Over the past month, the Zacks Consensus Estimate for NLY&#39;s quarterly earnings has remained unchanged at 66 cents per share, indicating an 8.3% decline from the prior-year reported figure.
Starwood Property Trust, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/stwd#NYSE">STWD</a>) is slated to post quarterly results on Aug 6.
Over the past month, the Zacks Consensus Estimate for STWD&#39;s quarterly earnings has been unchanged at 48 cents per share, indicating a decline of 2.04% from the prior-year quarter&#39;s reported figure.
<a href="https://www.zacks.com/stock/news/2307210/agnc-investment-agnc-q2-earnings-meet-asset-yield-improves?cid=CS-BENZ-FT-analyst_blog|earnings_article-2307210">To read this article on Zacks.com click here.</a>

STWD

AGNC Investment Q2 Earnings Meet, Asset Yield Improves

Jones Trading analyst Jason Weaver maintains AGNC Investment (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AGNC#NASDAQ">AGNC</a>) with a Buy and maintains $10.25 price target.

Jones Trading Maintains Buy on AGNC Investment, Maintains $10.25 Price Target

AGNC Investment (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AGNC#NASDAQ">AGNC</a>) reported quarterly losses of $(0.11) per share which missed the analyst consensus estimate of $0.36 by 130.56 percent.

Earnings Misses

AGNC Investment Q2 2024 GAAP EPS $(0.11) Misses $0.36 Estimate

JP Morgan analyst Richard Shane maintains AGNC Investment (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AGNC#NASDAQ">AGNC</a>) with a Overweight and raises the price target from $9.5 to $10.

JP Morgan Maintains Overweight on AGNC Investment, Raises Price Target to $10

Keefe, Bruyette &amp; Woods analyst Bose George maintains AGNC Investment (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AGNC#NASDAQ">AGNC</a>) with a Outperform and raises the price target from $9.5 to $10.

Keefe, Bruyette & Woods Maintains Outperform on AGNC Investment, Raises Price Target to $10

AGNC Investment's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGNC#NYSE">AGNC</a>) short percent of float has fallen 6.43% since its last report. The company recently reported that it has 46.34 million shares sold short, which is 6.4% of all regular shares that are available for trading. Based on its trading volume, it would take traders 4.22 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>AGNC Investment Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1719856815_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for AGNC Investment has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing AGNC Investment's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, AGNC Investment's peer group average for short interest as a percentage of float is 7.09%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Looking Into AGNC Investment's Recent Short Interest

Wall Street watches a company&#39;s quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
Hunting for &#39;earnings whispers&#39; or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn&#39;t make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
The Zacks Earnings ESP, Explained
The Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.
Now that we understand the basic idea, let&#39;s look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.
Should You Consider AGNC Investment?
The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. AGNC Investment (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/agnc#NASDAQ">AGNC</a>) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $0.56 a share 27 days away from its upcoming earnings release on July 22, 2024.
AGNC has an Earnings ESP figure of +5.66%, which, as explained above, is calculated by taking the percentage difference between the $0.56 Most Accurate Estimate and the Zacks Consensus Estimate of $0.53. AGNC Investment is one of a large database of stocks with positive ESPs.
AGNC is just one of a large group of Finance stocks with a positive ESP figure. Healthpeak (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/doc#NYSE">DOC</a>) is another qualifying stock you may want to consider.
Healthpeak is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on July 25, 2024. DOC&#39;s Most Accurate Estimate sits at $0.44 a share 30 days from its next earnings release.
For Healthpeak, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.44 is +1.15%.
Because both stocks hold a positive Earnings ESP, AGNC and DOC could potentially post earnings beats in their next reports.
<a href="https://www.zacks.com/stock/news/2292709/these-2-finance-stocks-could-beat-earnings-why-they-should-be-on-your-radar?cid=CS-BENZ-FT-tale_of_the_tape|zacks_education_earnings_esp-2292709">To read this article on Zacks.com click here.</a>

These 2 Finance Stocks Could Beat Earnings: Why They Should Be on Your Radar

This whale alert can help traders discover the next big trading opportunities.
Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.
Traders often look for circumstances when the market estimation of an option diverges away from its normal worth. Abnormal amounts of trading activity could push option prices to hyperbolic or underperforming levels. 
Below are some instances of options activity happening in the Financials sector: 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>HOOD</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>06/21/24</td>
<td>$23.00</td>
<td>$28.2K</td>
<td>15.0K</td>
<td>2.1K</td>
</tr>
<tr>
<td>JPM</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>07/12/24</td>
<td>$205.00</td>
<td>$26.9K</td>
<td>314</td>
<td>1.2K</td>
</tr>
<tr>
<td>COIN</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>06/21/24</td>
<td>$242.50</td>
<td>$46.7K</td>
<td>437</td>
<td>757</td>
</tr>
<tr>
<td>PYPL</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>08/16/24</td>
<td>$60.00</td>
<td>$34.5K</td>
<td>6.3K</td>
<td>389</td>
</tr>
<tr>
<td>WFC</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>09/20/24</td>
<td>$62.50</td>
<td>$27.0K</td>
<td>1.9K</td>
<td>340</td>
</tr>
<tr>
<td>C</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>09/20/24</td>
<td>$60.00</td>
<td>$29.8K</td>
<td>23.0K</td>
<td>333</td>
</tr>
<tr>
<td>GL</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>06/21/24</td>
<td>$76.50</td>
<td>$36.4K</td>
<td>509</td>
<td>300</td>
</tr>
<tr>
<td>AIG</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/17/25</td>
<td>$80.00</td>
<td>$117.6K</td>
<td>5.8K</td>
<td>164</td>
</tr>
<tr>
<td>SQ</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/16/26</td>
<td>$60.00</td>
<td>$42.6K</td>
<td>910</td>
<td>36</td>
</tr>
<tr>
<td>AGNC</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>09/20/24</td>
<td>$10.00</td>
<td>$40.9K</td>
<td>1.0K</td>
<td>16</td>
</tr>
</tbody>
</table>

<h2>Explanation</h2>
These itemized elaborations have been created using the accompanying table. 
• Regarding HOOD (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOOD#NASDAQ">HOOD</a>), we observe a call option sweep with bearish sentiment. It expires in 7 day(s) on June 21, 2024. Parties traded 455 contract(s) at a $23.00 strike. This particular call needed to be split into 18 different trades to become filled. The total cost received by the writing party (or parties) was $28.2K, with a price of $62.0 per contract. There were 15079 open contracts at this strike prior to today, and today 2113 contract(s) were bought and sold. 
• For JPM (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), we notice a call option sweep that happens to be bearish, expiring in 28 day(s) on July 12, 2024. This event was a transfer of 221 contract(s) at a $205.00 strike. This particular call needed to be split into 4 different trades to become filled. The total cost received by the writing party (or parties) was $26.9K, with a price of $122.0 per contract. There were 314 open contracts at this strike prior to today, and today 1269 contract(s) were bought and sold. 
• Regarding COIN (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>), we observe a call option trade with bullish sentiment. It expires in 7 day(s) on June 21, 2024. Parties traded 56 contract(s) at a $242.50 strike. The total cost received by the writing party (or parties) was $46.7K, with a price of $835.0 per contract. There were 437 open contracts at this strike prior to today, and today 757 contract(s) were bought and sold. 
• Regarding PYPL (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>), we observe a call option sweep with bearish sentiment. It expires in 63 day(s) on August 16, 2024. Parties traded 75 contract(s) at a $60.00 strike. This particular call needed to be split into 5 different trades to become filled. The total cost received by the writing party (or parties) was $34.5K, with a price of $460.0 per contract. There were 6380 open contracts at this strike prior to today, and today 389 contract(s) were bought and sold. 
• For WFC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>), we notice a put option sweep that happens to be bearish, expiring in 98 day(s) on September 20, 2024. This event was a transfer of 46 contract(s) at a $62.50 strike. This particular put needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $27.0K, with a price of $588.0 per contract. There were 1904 open contracts at this strike prior to today, and today 340 contract(s) were bought and sold. 
• For C (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>), we notice a call option sweep that happens to be bullish, expiring in 98 day(s) on September 20, 2024. This event was a transfer of 100 contract(s) at a $60.00 strike. This particular call needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $29.8K, with a price of $298.0 per contract. There were 23058 open contracts at this strike prior to today, and today 333 contract(s) were bought and sold. 
• For GL (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GL#NYSE">GL</a>), we notice a put option sweep that happens to be bearish, expiring in 7 day(s) on June 21, 2024. This event was a transfer of 270 contract(s) at a $76.50 strike. This particular put needed to be split into 30 different trades to become filled. The total cost received by the writing party (or parties) was $36.4K, with a price of $135.0 per contract. There were 509 open contracts at this strike prior to today, and today 300 contract(s) were bought and sold. 
• For AIG (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AIG#NYSE">AIG</a>), we notice a call option sweep that happens to be bullish, expiring in 217 day(s) on January 17, 2025. This event was a transfer of 336 contract(s) at a $80.00 strike. This particular call needed to be split into 35 different trades to become filled. The total cost received by the writing party (or parties) was $117.6K, with a price of $350.0 per contract. There were 5842 open contracts at this strike prior to today, and today 164 contract(s) were bought and sold. 
• For SQ (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SQ#NYSE">SQ</a>), we notice a put option sweep that happens to be bullish, expiring in 581 day(s) on January 16, 2026. This event was a transfer of 36 contract(s) at a $60.00 strike. This particular put needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $42.6K, with a price of $1185.0 per contract. There were 910 open contracts at this strike prior to today, and today 36 contract(s) were bought and sold. 
• Regarding AGNC (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AGNC#NASDAQ">AGNC</a>), we observe a put option sweep with bearish sentiment. It expires in 98 day(s) on September 20, 2024. Parties traded 650 contract(s) at a $10.00 strike. This particular put needed to be split into 4 different trades to become filled. The total cost received by the writing party (or parties) was $40.9K, with a price of $63.0 per contract. There were 1071 open contracts at this strike prior to today, and today 16 contract(s) were bought and sold. 
Options Alert Terminology 
 - Call Contracts: The right to buy shares as indicated in the contract. 
 - Put Contracts: The right to sell shares as indicated in the contract. 
 - Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it. 
 - Premium/Option Price: The price of the contract. 
For more information, visit our <a href="https://pro.benzinga.com/blog/how-to-understand-option-alerts/">Guide to Understanding Options Alerts</a> or read <a href="https://www.benzinga.com/markets/options">more about unusual options activity</a>. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

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