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Zacks Downgrades Hatteras Financial Corp. to Underperform (HTS)

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Hatteras Financial Corp. logoHatteras Financial Corp. (NYSE: HTS) was downgraded by Zacks from a “neutral” rating to an “underperform” rating in a report issued on Friday, Stock Ratings Network.com reports. They currently have a $22.60 price target on the stock. Zacks‘ target price suggests a potential downside of 3.95% from the stock’s previous close.

Shares of Hatteras Financial Corp. (NYSE: HTS) traded down 0.64% during mid-day trading on Friday, hitting $23.38. Hatteras Financial Corp. has a 52 week low of $22.81 and a 52 week high of $29.68. The stock’s 50-day moving average is currently $25.04. The company has a market cap of $2.311 billion and a P/E ratio of 6.93.

Hatteras Financial Corp. (NYSE: HTS) last released its earnings data on Tuesday, April 23rd. The company reported $0.62 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.67 by $0.05. The company had revenue of $71.40 million for the quarter. During the same quarter in the prior year, the company posted $0.89 earnings per share. The company’s quarterly revenue was down .8% on a year-over-year basis.

A number of other firms have also recently commented on HTS. Analysts at Merrill Lynch downgraded shares of Hatteras Financial Corp. to an “underperform” rating in a research note to investors on Thursday. Separately, analysts at Bank of America Corp. downgraded shares of Hatteras Financial Corp. from a “neutral” rating to an “underperform” rating in a research note to investors on Thursday. Finally, analysts at Evercore Partners downgraded shares of Hatteras Financial Corp. from an “overweight” rating to an “equal weight” rating in a research note to investors on Thursday. They now have a $24.00 price target on the stock, down previously from $28.00.

Three analysts have rated the stock with a sell rating, nine have assigned a hold rating and two have assigned a buy rating to the company. The company has an average rating of “Hold” and an average target price of $26.19.

The company also recently declared a quarterly dividend, which is scheduled for Friday, July 19th. Stockholders of record on Monday, July 1st will be given a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a yield of 11.90%. The ex-dividend date of this dividend is Thursday, June 27th.

Hatteras Financial Corp. is an externally managed mortgage real estate investment trust (NYSE: HTS) that invests primarily in single-family residential mortgage pass-through securities guaranteed or issued by the United States Government agency (such as the Government National Mortgage Association (Ginnie Mae)), or by the United States Government-sponsored entity (such as the Federal National Mortgage Association, (Fannie Mae)), and the Federal Home Loan Mortgage Corporation, (Freddie Mac)).

To view Zacks’ full report, visit www.zacks.com


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