ARMOUR Residential REIT Inc. (ARR) shares are trading at lower $10.75 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $10.00.
To add more color to this target, the company’s high over the last year is $21.15 and the low is $4.95. Over the last 52 weeks, ARR is down -37.39% while the S&P 500 is up 15.47%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, ARR reported a profit of $16.21 million. ARMOUR Residential REIT Inc. also saw revenues increase to $25.73 million. In addition, ARR has free cash flow of -$294.94 million as of 09-2020. The company’s EBITDA came in at $29.77 million which compares well with its peers.
ARR Return on Equity (ROE) is -20.10%, and its Return on Assets is -2.70%. All told, it is clear that, ARR needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. ARR has a short ratio of 3.17 and outstanding shares of 64.72M.
ARR has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.06 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -3.55. Investors should also keep an eye on sector updates as ARR has historically followed its peers on positive news.
All told, ARMOUR Residential REIT Inc. ARR has strung together solid data and demonstrated underlying fundamentals. At its current valuation, ARR represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
ARMOUR Residential REIT Inc. ARR is now commanding a market cap of 694.56M and a float of 63.51M. ARR is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of ARR stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in ARR, either long or short, and we have not been compensated for this article.