Today’s Stock Alert: What’s Next for Western Asset Mortgage Capital Corp After Today’s Gap Down?

Today's Stock Alert: What's Next for Western Asset Mortgage Capital Corp After Today's Gap Down?

The stock of Western Asset Mortgage Capital Corp (NYSE:WMC) gapped down by $0.06 today and has $9.07 target or 13.00% below today’s $10.42 share price. The 7 months technical chart setup indicates high risk for the $434.80 million company. The gap down was reported on Oct, 1 by Barchart.com. If the $9.07 price target is reached, the company will be worth $56.52 million less.
Gaps down are helpful for identifying a resistance level and to could also be used as a tradeable event. If traders are short the stock and it experiece gap down, then its usually advisable to hold the short for a bigger down move. Back-tests of such patterns show that two-thirds of the these patterns the stock performance worsens after the gap. The area gaps close 91% of the time, the breakaway gaps 1%, the continuation gaps 9% and the exhaustion gaps 64%. The stock decreased 2.48% or $0.27 on September 30, hitting $10.42. Western Asset Mortgage Capital Corp (NYSE:WMC) has declined 3.61% since February 29, 2016 and is downtrending. It has underperformed by 14.03% the S&P500.

Analysts await Western Asset Mortgage Capital Corp (NYSE:WMC) to report earnings on November, 2. They expect $0.28 earnings per share, down 40.43% or $0.19 from last year’s $0.47 per share. WMC’s profit will be $11.68M for 9.30 P/E if the $0.28 EPS becomes a reality. After $0.27 actual earnings per share reported by Western Asset Mortgage Capital Corp for the previous quarter, Wall Street now forecasts 3.70% EPS growth.

Western Asset Mortgage Capital Corp (NYSE:WMC) Ratings Coverage

Out of 7 analysts covering Western Asset Mortgage Capital (NYSE:WMC), 1 rate it a “Buy”, 1 “Sell”, while 5 “Hold”. This means 14% are positive. Western Asset Mortgage Capital has been the topic of 12 analyst reports since August 4, 2015 according to StockzIntelligence Inc. The firm earned “Hold” rating on Wednesday, August 10 by Deutsche Bank. As per Wednesday, June 29, the company rating was downgraded by Bank of America. The company was upgraded on Friday, August 5 by Wunderlich. The stock of Western Asset Mortgage Capital Corp (NYSE:WMC) has “Hold” rating given on Friday, November 6 by Wunderlich. The rating was maintained by Deutsche Bank on Thursday, August 6 with “Hold”. The company was maintained on Wednesday, August 17 by Citigroup. The stock has “Underperform” rating given by Wells Fargo on Monday, April 11. The stock of Western Asset Mortgage Capital Corp (NYSE:WMC) earned “Sell” rating by Wunderlich on Tuesday, May 10. The firm earned “Hold” rating on Monday, June 27 by Wunderlich.

According to Zacks Investment Research, “Western Asset Mortgage Capital Corporation is focused on investing in, financing and managing primarily residential mortgage-backed securities for which the principal and interest payments are guaranteed by a U.S. Government agency or federally chartered corporation. Western Asset Mortgage Capital Corporation is headquartered in Pasadena, California.”

Insitutional Activity: The institutional sentiment decreased to 0.78 in Q2 2016. Its down 0.46, from 1.24 in 2016Q1. The ratio turned negative, as 13 funds sold all Western Asset Mortgage Capital Corp shares owned while 28 reduced positions. 2 funds bought stakes while 30 increased positions. They now own 12.84 million shares or 6.20% more from 12.09 million shares in 2016Q1.
Cetera Advsr Ltd Liability Corporation holds 0.03% of its portfolio in Western Asset Mortgage Capital Corp (NYSE:WMC) for 37,475 shares. American Group Incorporated Inc last reported 0% of its portfolio in the stock. The Ohio-based Strs Ohio has invested 0% in Western Asset Mortgage Capital Corp (NYSE:WMC). Spot Trading accumulated 0% or 8,879 shares. The Florida-based Raymond James And has invested 0% in Western Asset Mortgage Capital Corp (NYSE:WMC). Aperio Gp Ltd Llc accumulated 22,225 shares or 0% of the stock. Us Commercial Bank De has 2,209 shares for 0% of their US portfolio. Lsv Asset Mgmt has 0% invested in the company for 155,700 shares. Royal Commercial Bank Of Canada holds 22,394 shares or 0% of its portfolio. Blackrock Inc has invested 0% of its portfolio in Western Asset Mortgage Capital Corp (NYSE:WMC). Pnc Grp Inc has invested 0% of its portfolio in Western Asset Mortgage Capital Corp (NYSE:WMC). Manufacturers Life Insurance The has invested 0% of its portfolio in Western Asset Mortgage Capital Corp (NYSE:WMC). State Board Of Administration Of Florida Retirement Sys holds 0% of its portfolio in Western Asset Mortgage Capital Corp (NYSE:WMC) for 33,285 shares. Susquehanna Interest Group Llp accumulated 0% or 46,816 shares. Bank & Trust Of America Corp De holds 143,414 shares or 0% of its portfolio.

Insider Transactions: Since September 14, 2016, the stock had 1 buy, and 0 sales for $8,052 net activity. Meyer Lisa also bought $8,052 worth of Western Asset Mortgage Capital Corp (NYSE:WMC) shares.

More notable recent Western Asset Mortgage Capital Corp (NYSE:WMC) news were published by: Prnewswire.com which released: “Western Asset Mortgage Capital Corporation Declares Third Quarter Dividend Of …” on September 22, 2016, also Marketwatch.com with their article: “Western Asset Mortgage Capital Corp.” published on September 28, 2011, Prnewswire.com published: “Western Asset Mortgage Capital Corporation Announces Tax Characteristics Of …” on February 02, 2016. More interesting news about Western Asset Mortgage Capital Corp (NYSE:WMC) were released by: Nasdaq.com and their article: “Western Asset Mortgage Capital Corporation (WMC) Ex-Dividend Date Scheduled …” published on September 29, 2016 as well as Seekingalpha.com‘s news article titled: “Optimism On Steroids: Western Asset Mortgage Capital” with publication date: August 07, 2016.

WMC Company Profile

Western Asset Mortgage Capital Corporation, incorporated on June 3, 2009, is a real estate investment trust focused on investing in, financing and managing a portfolio of real estate related securities, whole-loans and other financial assets. The Company’s portfolio consists of Agency residential mortgage-backed securities (RMBS) (including To-Be-Announced securities (TBAs)), Non-Agency RMBS, Agency and Non-Agency commercial mortgage-backed securities (CMBS), and Whole-Loans. In addition, the Company also invests in other securities, including certain Agency obligations that are not technically mortgage-backed securities (MBS), as well as in certain Non-United States CMBS and asset-backed securities (ABS) investments secured by a portfolio private student loans. The Firm is externally managed and advised by Western Asset Management Company.

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