Capstead Mortgage Corporation [CMO] is 11.02% higher this YTD. Is it still time to buy?

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Capstead Mortgage Corporation [NYSE: CMO] traded at a high on 07/26/21, posting a 6.09 gain after which it closed the day’ session at $6.45. The company report on July 27, 2021 that SHAREHOLDER ALERT: WeissLaw LLP Investigates Capstead Mortgage Corporation.

WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the board of directors of Capstead Mortgage Corporation (“Capstead” or the “Company”) (NYSE: CMO) in connection with the Company’s proposed merger with Benefit Street Partners Realty Trust, Inc (“BSPRT”). Under the terms of the merger agreement, Capstead shareholders will receive a cash payment equal to a 15.75% premium to Capstead’s diluted book value per share and shares of BSPRT common stock calculated on an adjusted “book-for-book” basis. The book values for Capstead and BSPRT used to calculate the cash consideration and exchange ratio will be set on a date prior to the closing of the transaction. Based on the June 30, 2021 book value per share of Capstead of $6.35 and BSPRT’s expected book value per share of $18.28, the implied cash payment would be $0.99 per share and the total value would be $7.30 per share. The transaction is valued at approximately $2 billion.

If you own Capstead shares and wish to discuss this investigation or have any questions concerning this notice or your rights or interests, visit our website:.

The results of the trading session contributed to over 4044183 shares changing hands. Over the past one week, the price volatility of Capstead Mortgage Corporation stands at 2.94% while the volatility over the past one month is 2.26%.

The market cap for CMO stock reached $625.71 million, with 95.89 million shares outstanding and 94.40 million shares in the current float. Compared to the average trading volume of 816.42K shares, CMO reached a trading volume of 4044183 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Capstead Mortgage Corporation [CMO]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CMO shares is $6.75 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CMO stock is a recommendation set at 1.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

BofA/Merrill have made an estimate for Capstead Mortgage Corporation shares, keeping their opinion on the stock as Buy, with their previous recommendation back on April 28, 2020. The new note on the price target was released on March 30, 2020, representing the official price target for Capstead Mortgage Corporation stock. On February 25, 2019, analysts increased their price target for CMO shares from 7 to 8.50.

The Average True Range (ATR) for Capstead Mortgage Corporation is set at 0.18, with the Price to Sales ratio for CMO stock in the period of the last 12 months amounting to 4.37. The Price to Book ratio for the last quarter was 0.95, with the Price to Cash per share for the same quarter was set at 2.67. Price to Free Cash Flow for CMO in the course of the last twelve months was 8.01.

How has CMO stock performed recently?

Capstead Mortgage Corporation [CMO] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 8.40. With this latest performance, CMO shares gained by 1.90% in over the last four-week period, additionally plugging by 10.63% over the last 6 months – not to mention a rise of 9.88% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CMO stock in for the last two-week period is set at 58.40, with the RSI for the last a single of trading hit 63.99, and the three-weeks RSI is set at 55.32 for Capstead Mortgage Corporation [CMO]. The present Moving Average for the last 50 days of trading for this stock 6.36, while it was recorded at 6.20 for the last single week of trading, and 6.03 for the last 200 days.

Capstead Mortgage Corporation [CMO]: Deeper insight into the fundamentals

Return on Total Capital for CMO is now -0.58, given the latest momentum, and Return on Invested Capital for the company is -11.89. Return on Equity for this stock declined to -13.08, with Return on Assets sitting at -1.30. When it comes to the capital structure of this company, Capstead Mortgage Corporation [CMO] has a Total Debt to Total Equity ratio set at 814.97. Additionally, CMO Total Debt to Total Capital is recorded at 89.07, with Total Debt to Total Assets ending up at 88.25. Long-Term Debt to Equity for the company is recorded at 14.94, with the Long-Term Debt to Total Capital now at 1.18.

Reflecting on the efficiency of the workforce at the company, Capstead Mortgage Corporation [CMO] managed to generate an average of -$8,647,333 per employee. Receivables Turnover for the company is -0.63 with a Total Asset Turnover recorded at a value of 0.00.

Earnings analysis for Capstead Mortgage Corporation [CMO]

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CMO. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Capstead Mortgage Corporation go to 10.00%.

Insider trade positions for Capstead Mortgage Corporation [CMO]

There are presently around $462 million, or 77.30% of CMO stock, in the hands of institutional investors. The top three institutional holders of CMO stocks are: BLACKROCK INC. with ownership of 18,204,251, which is approximately 4.13% of the company’s market cap and around 1.70% of the total institutional ownership; VANGUARD GROUP INC, holding 10,278,691 shares of the stock with an approximate value of $66.3 million in CMO stocks shares; and PARADICE INVESTMENT MANAGEMENT LLC, currently with $35.94 million in CMO stock with ownership of nearly -0.436% of the company’s market capitalization.

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Positions in Capstead Mortgage Corporation stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 61 institutional holders increased their position in Capstead Mortgage Corporation [NYSE:CMO] by around 5,314,714 shares. Additionally, 79 investors decreased positions by around 10,225,970 shares, while 30 investors held positions by with 56,120,683 shares. The mentioned changes placed institutional holdings at 71,661,367 shares, according to the latest SEC report filing. CMO stock had 21 new institutional investments in for a total of 2,053,043 shares, while 25 institutional investors sold positions of 3,234,495 shares during the same period.

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