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Capstead Mortgage Corporation (NYSE:CMO): A Fundamentally Weighted Stock for Long-Term Investors

Capstead Mortgage Corporation (NYSE:CMO) Relative Strength Index (RSI) is 42.20, with weekly volatility at 2.23% and ATR at 0.12. The CMO stock’s 52-week price range has touched low of $5.06 and a $6.88 high. Intraday shares traded counted 1.26 million, which was -65.85% lower than its 30-day average trading volume of 757.60K. Its shares traded higher over the last trading session, gaining 0.16% on 06/21/21. The shares fell to a low of $6.39 before closing at $6.40. CMO’s previous close was $6.39 while the outstanding shares total 95.89M. The firm has a beta of 1.57, a 12-month trailing P/E ratio of 8.25, and a growth ratio of 0.82.

Investors have identified the REIT – Mortgage company Capstead Mortgage 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 $630.46 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 Capstead Mortgage Corporation (CMO)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/28/2021 quarter of the year, Capstead Mortgage Corporation recorded a total of 26.18 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -165.91% coming in sequential stages and their sales for the 07/28/2021 quarter reducing by -19.79%.

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 3.56 million trying to sell their products during the last quarter, with the result yielding a gross income of 22.62 million. This allows shareholders to hold on to 95.89M with the recently reported earning now reading 0.15 cents per share. This is a figure that compared to analyst’s prediction for their 07/28/2021 (0.13 cents a share).

Having a look at the company’s valuation, the company is expected to record 0.63 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 CMO sounds very interesting.

Is the stock of CMO attractive?

In the last 6 months, insiders have changed their ownership in shares of company stock by 1.70%.

3 out of 3 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on Capstead Mortgage Corporation. 0 analysts has assigned a Sell rating on the CMO stock. The 12-month mean consensus price target for the company’s shares has been set at $6.75.

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