
Dynex Capital (DX) Stock Forecast & Price Target
Dynex Capital (DX) Analyst Ratings
Bulls say
Dynex Capital Inc. has demonstrated a strong financial performance, as evidenced by a significant increase in its portfolio, which grew by 25% to reach $14.2 billion, up from $11.1 billion in the previous quarter. The company also achieved a notable increase in leverage, rising to 8.3x from 7.4x, which is indicative of its aggressive investment strategy in Agency mortgage-backed securities amidst the perceived decrease in certain risk factors. Additionally, the firm's focus on investing in Agency RMBS with coupons in the range of 4.5%-5.5% has positively impacted its outlook, with these securities now accounting for 80% of the portfolio, thus positioning Dynex Capital to yield mid to high teen returns on equity.
Bears say
Dynex Capital Inc. faced a total economic return of (0.8)% in the first quarter attributed to declines in the hedge portfolio due to widening spreads and heightened volatility in the agency mortgage-backed securities (MBS) market. In the second quarter of 2025, the company reported an earnings per share (EPS) of ($0.14), falling short of expectations largely due to hedge-related losses that preceded any gains from fair value adjustments. Concerns surrounding future performance are exacerbated by the potential impact of increased agency MBS purchases by the Federal Reserve, which could lead to declining mortgage rates, increased prepayments, and lower reinvestment yields, subsequently harming earnings.
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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