ARMOUR Residential REIT, Inc. (ARR) Stock Posted a Gross Margin of 88.88% Over the Past Year: Is This Justifiable?

Janney has recently initiated ARMOUR Residential REIT, Inc. (ARR) stock to Neutral rating, as announced on June 6, 2024, according to Finviz. Earlier, on December 6, 2023, UBS had initiated the stock to Neutral, setting a price target of $18.50. B. Riley Securities also reiterated Neutral rating with a price target of $9.50. Additionally, B. Riley Securities initiated Neutral rating on July 14, 2021, with a target price of $11.50. Ladenburg Thalmann analysts, in their report published on February 18, 2021, also reduced Neutral rating for ARMOUR Residential REIT, Inc.’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.

ARMOUR Residential REIT, Inc. (ARR) Stock Trading Recap

On Friday, ARMOUR Residential REIT, Inc. (ARR) stock saw a modest uptick, ending the day at $20.36 which represents a slight increase of $0.26 or 1.29% from the prior close of $20.1. The stock opened at $20.13 and touched a low of $20.1 during the day, reaching a high of $20.36. The volume of shares traded was 1.06 million falling short of the average volume of 1.19 million.


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ARR Stock Performance and Moving Averages

In recent trading, ARMOUR Residential REIT, Inc. (ARR) stock price has shown some volatility, fluctuating 3.19% over the last five trades and -2.63% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 12.05%, and it has plunged by -4.50% in the previous three months. Currently, ARR is trading at 1.81%, 0.72%, and 3.98% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.

As of the latest trading close, ARR, a Real Estate sector stock, is trading -7.16% below its 52-week high but remains 52.91% above its 52-week low. The Average True Range (ATR) (14 days) of 0.31 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.

ARMOUR Residential REIT, Inc.’s Profitability and Valuation Ratios

ARMOUR Residential REIT, Inc.’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 149.29% and a profit margin of -42.92%, with a gross margin of 12.05%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.

In terms of valuation, ARMOUR Residential REIT, Inc.’s market capitalization stands at $992.96 million. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The forward P/E ratio, which uses projected earnings for the next financial year, is 4.97. Additionally, the Price-to-Sales Ratio is 3.4, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 0.85, comparing the market value to the company’s book value.

Understanding Insider Trading

Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.64% of ARMOUR Residential REIT, Inc. (ARR)’s shares, while financial institutions hold 52.46%.

Notable insider trades include STATON DANIEL C, Chairman of the Board at ARMOUR Residential REIT, Inc. (ARR), who sold 61682 shares on Dec 29 ’23, at $19.46 each, totaling $1.20 million.

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