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Are Western Asset Mortgage Capital Corporation (NYSE:WMC)’s Fundamentals Enough to Outperform

Western Asset Mortgage Capital Corporation (NYSE:WMC) shares fell to a low of $3.625 before closing at $3.67. Intraday shares traded counted 0.68 million, which was 13.59% higher than its 30-day average trading volume of 791.13K. WMC’s previous close was $3.77 while the outstanding shares total 60.74M. The firm has a beta of 2.20, a 12-month trailing P/E ratio of 2.26, and a growth ratio of 0.45. The stock’s Relative Strength Index (RSI) is 56.27, with weekly volatility at 4.64% and ATR at 0.14. The WMC stock’s 52-week price range has touched low of $1.88 and a $4.19 high. The stock traded lower over the last trading session, losing -2.65% on 06/17/21.

Investors have identified the REIT – Mortgage company Western Asset Mortgage Capital Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $234.55 million, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Potential earnings growth for Western Asset Mortgage Capital Corporation (WMC)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/10/2021 quarter of the year, Western Asset Mortgage Capital Corporation recorded a total of 49.34 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 791.75% coming in sequential stages and their sales for the 08/10/2021 quarter reducing by -7.85%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 41.29 million trying to sell their products during the last quarter, with the result yielding a gross income of 8.05 million. This allows shareholders to hold on to 60.74M with the recently reported earning now reading 0.13 cents per share. This is a figure that compared to analyst’s prediction for their 08/10/2021 (0.10 cents a share).

Having a look at the company’s valuation, the company is expected to record 0.36 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on WMC sounds very interesting.

Is the stock of WMC attractive?

In related news, Chief Financial Officer, Meyer Lisa bought 1,500 shares of the company’s stock in a transaction that recorded on Nov 19. The purchase was performed at an average price of 2.90, for a total value of 4,345. As the purchase deal closes, the Director, President and CEO, Murphy Jennifer now bought 20,000 shares of the company’s stock, valued at 39,230. Also, Chief Investment Officer, Trifon Harris bought 5,000 shares of the company’s stock in a deal that was recorded on Jun 24. The shares were cost at an average price of 2.53 per share, with a total market value of 12,645. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.83%.

0 out of 1 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on Western Asset Mortgage Capital Corporation. 0 analysts has assigned a Sell rating on the WMC stock. The 12-month mean consensus price target for the company’s shares has been set at $3.25.

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