Price Action to Note: Is Dynex Capital Inc’s Fuel Running Low? The Stock Just Gapped Down

Price Action to Note: Is Dynex Capital Inc's Fuel Running Low? The Stock Just Gapped Down

The stock of Dynex Capital Inc (NYSE:DX) gapped down by $0.15 today and has $6.39 target or 10.00% below today’s $7.10 share price. The 8 months technical chart setup indicates high risk for the $346.61 million company. The gap down was reported on Oct, 4 by Barchart.com. If the $6.39 price target is reached, the company will be worth $34.66M 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 1.53% or $0.11 on October 3, hitting $7.1. Dynex Capital Inc (NYSE:DX) has risen 11.29% since March 1, 2016 and is uptrending. It has underperformed by 0.93% the S&P500.

Analysts await Dynex Capital Inc (NYSE:DX) to report earnings on October, 26.

Dynex Capital Inc (NYSE:DX) Ratings Coverage

Out of 5 analysts covering Dynex Capital (NYSE:DX), 2 rate it a “Buy”, 0 “Sell”, while 3 “Hold”. This means 40% are positive. Dynex Capital has been the topic of 12 analyst reports since August 7, 2015 according to StockzIntelligence Inc. The stock has “Buy” rating given by Maxim Group on Monday, August 10. Maxim Group maintained the shares of DX in a report on Thursday, February 18 with “Buy” rating. Ladenburg Thalmann downgraded the stock to “Neutral” rating in Thursday, April 28 report. Zacks downgraded the stock to “Buy” rating in Tuesday, August 18 report.

According to Zacks Investment Research, “Dynex Capital, Inc. and its Subsidiaries and Affiliates, is a mortgage and consumer finance company which uses its loan production operations to create investments for its portfolio. Currently, the Company’s primary production operations include the origination of mortgage loans secured by multi-family properties and the origination of loans secured by manufactured homes. The Company has recently expanded its production activities to include commercial real estate loans and may expand into other financial products in the future.”

Insitutional Activity: The institutional sentiment increased to 1.25 in Q2 2016. Its up 0.21, from 1.04 in 2016Q1. The ratio increased, as 10 funds sold all Dynex Capital Inc shares owned while 30 reduced positions. 19 funds bought stakes while 31 increased positions. They now own 21.04 million shares or 2.47% less from 21.57 million shares in 2016Q1.
Royal Fincl Bank Of Canada holds 0% or 50,443 shares in its portfolio. State Street accumulated 1.06M shares or 0% of the stock. Moreover, Lpl Fincl Limited Liability Company has 0% invested in Dynex Capital Inc (NYSE:DX) for 14,033 shares. The Florida-based Finemark Commercial Bank & Tru has invested 0% in Dynex Capital Inc (NYSE:DX). Metropolitan Life Ny last reported 0% of its portfolio in the stock. Indexiq Advisors Lc holds 0.01% or 36,391 shares in its portfolio. Prudential Finance owns 543,856 shares or 0.01% of their US portfolio. Bnp Paribas Arbitrage Sa accumulated 1,744 shares or 0% of the stock. Us State Bank De has 167 shares for 0% of their US portfolio. Susquehanna Intll Group Llp holds 0% or 11,284 shares in its portfolio. Commonwealth Lc has invested 0% of its portfolio in Dynex Capital Inc (NYSE:DX). Moreover, Wells Fargo Commerce Mn has 0% invested in Dynex Capital Inc (NYSE:DX) for 34,299 shares. Moreover, Ubs Asset Management Americas has 0% invested in Dynex Capital Inc (NYSE:DX) for 42,088 shares. Cambridge Invest Rech Advsrs has 0.02% invested in the company for 152,606 shares. Zurcher Kantonalbank (Zurich Cantonalbank) owns 2,116 shares or 0% of their US portfolio.

Insider Transactions: Since May 24, 2016, the stock had 0 insider purchases, and 16 sales for $5.66 million net activity. $59,106 worth of Dynex Capital Inc (NYSE:DX) was sold by IGDALOFF BARRY. 57,421 shares with value of $381,308 were sold by AKIN THOMAS B on Friday, July 8.

More notable recent Dynex Capital Inc (NYSE:DX) news were published by: Nasdaq.com which released: “Dynex Capital, Inc. (DX) Ex-Dividend Date Scheduled for October 03, 2016” on September 30, 2016, also Businesswire.com with their article: “Dynex Capital, Inc. to Present at the JMP Securities Financial Services and …” published on September 24, 2014, Businesswire.com published: “Dynex Capital, Inc. Announces Schedule for Second Quarter 2016 Results” on February 03, 2016. More interesting news about Dynex Capital Inc (NYSE:DX) were released by: Businesswire.com and their article: “Dynex Capital, Inc. Announces 2015 Dividend Tax Information” published on February 11, 2016 as well as Seekingalpha.com‘s news article titled: “Dynex Capital, Inc. (DX) CEO Byron Boston on Q2 2016 Results – Earnings Call …” with publication date: July 27, 2016.

DX Company Profile

Dynex Capital, Inc., incorporated on December 18, 1987, is an internally managed mortgage real estate investment trust (mortgage REIT), which invests in residential and commercial mortgage-backed securities on a leveraged basis. The Company’s objective is to provide attractive risk-adjusted returns to its shareholders over the long term that is reflective of a leveraged fixed income portfolio with a focus on capital preservation. The Firm seeks to provide returns to its shareholders through regular quarterly dividends and through capital appreciation. The Firm invests in Agency and non-Agency mortgage-backed securities (MBS). MBS consist of residential MBS (RMBS), commercial MBS (CMBS) and CMBS interest-only (IO) securities. Agency MBS have a guaranty of principal payment by an agency of the United States Government or a government-sponsored entity (GSE), such as Fannie Mae and Freddie Mac. Non-Agency MBS have no such guaranty of payment. The Company’s primary source of income is net interest income, which is the excess of the interest income earned on its investments over the cost of financing these investments. The Firm invests its capital pursuant to its Operating Policies, which include an Investment Policy and Investment Risk Policy.

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