
Dynex Capital (DX) Stock Forecast & Price Target
Dynex Capital (DX) Analyst Ratings
Bulls say
Dynex Capital Inc. demonstrated a robust performance with a significant increase in its portfolio, which grew by 25% quarter-over-quarter, resulting in a fair value increase of approximately $185 million on its $15.8 billion asset base, showcasing effective capital utilization in a favorable market environment. The company's leverage also improved, rising to 8.3x from 7.4x, indicating a strategic approach to enhance returns amid reduced risk factors related to government-sponsored entities and regulatory changes. Furthermore, a consistent rise in Agency RMBS coupon rates, particularly in the 4.5%-5.5% range, from 73% to 86%, underlines Dynex's capability to capitalize on market opportunities, potentially leading to mid-high teen return on equity in agency mortgage-backed securities.
Bears say
Dynex Capital Inc. reported a total economic return of (0.8)% for the first quarter, primarily due to declines in the hedge portfolio linked to increased volatility and marginal spread widening in agency mortgage-backed securities (MBS). Additionally, the company's second quarter earnings per share (EPS) of ($0.14) fell short of expectations, largely attributed to hedge-related losses that overshadowed fair value adjustment gains. The ongoing uncertainty in the mortgage market, exacerbated by potential Federal Reserve actions that could lower mortgage rates and affect reinvestment yields, further contributes to the negative outlook on Dynex Capital's stock.
This aggregate rating is based on analysts' research of Dynex Capital and is not a guaranteed prediction by Public.com or investment advice.
Dynex Capital (DX) Analyst Forecast & Price Prediction
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