Big changes are happening at ARMOUR Residential REIT, Inc. (NYSE:ARR), which makes the stock worth watching today. The company is among the top losers of the stock market today, sinking -2.84% or (-0.53 points) to $18.16 from its previous close of $18.69. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 682860 contracts so far this session. ARR shares had a relatively better volume day versus average trading capacity of 1.09 million shares, but with a 58.91 million float and a 0.27% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for ARR stock indicates that the average analyst price target is $19.33 per share. This means the stock has a potential increase of 6.44% from where the ARR share price has been trading recently which is between $18.66 and $18.85. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $19.
The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “ARMOUR Residential REIT, Inc. Announces June 2019 Dividend of $0.19 Per Common Share” and dated May 14, 2019.
During the recent trading session for ARMOUR Residential REIT, Inc. (NYSE:ARR), the company witnessed their stock drop by $-0.75 over a week and tumble down $-1.59 from the price 20 days ago. When compared to their established 52-week high of $24.07, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 09/06/18. The recent low of $18.1 stood for a -24.55% since 05/17/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0.59 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.
Looking at the current readings for ARMOUR Residential REIT, Inc., the two-week RSI stands at 30.08. This figure suggests that ARR stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current ARR readings is similarly very revealing as it has a stochastic reading of 15.12% at this stage. This figure means that ARR share price today is being overbought.
Technical chart claims that ARMOUR Residential REIT, Inc. (ARR) would settle between $18.81/share to $18.92/share level. However, if the stock price goes below the $18.62 mark, then the market for ARMOUR Residential REIT, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $18.54 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.14. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at Nomura, assumed coverage of ARR assigning Neutral rating, according to their opinion released on March 27. Nomura analysts bumped their rating on ARMOUR Residential REIT, Inc. (NYSE:ARR) stock from Reduce to Neutral in a separate flash note issued to investors on November 09. Analysts at Ladenburg Thalmann lowered the stock to a Neutral call from its previous Buy recommendation, in a research note that dated back to May 04.
ARR equity has an average rating of 3.33, with the figure leaning towards a bullish end. 6 analysts who tracked the company were contacted by Reuters. Amongst them, 4 rated the stock as a hold while the remaining 2 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 0 analysts rated ARMOUR Residential REIT, Inc. (NYSE:ARR) as a buy or a strong buy while 2 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, ARR stock price is currently trading at 7.55X forward 12-month Consensus EPS estimates, and its P/S ratio is 2.95 while for the average stock in the same group, the multiple is 10.04. ARMOUR Residential REIT, Inc. current P/E ratio of 3.51 means it is trading at a discount against its industry’s 41.05. In the past 5 years, this ratio for the stock has been fluctuating between 6.59 and 6.59.