Boston, MA 03/25/2014 (wallstreetpr) – Shares of Western Asset Mortgage Capital Corp (NYSE:WMC) which started on a positive note in the premarket session are now descending, being in-line with the bearish sentiment served on the stock Monday by analysts at Compass Point. The shares looked headed to positive opening, which 0.06 percent gain in premarket, but the tide has changed.
The stock suffered in the hands of analysts at Compass Point who lower both their rating and price target on the sock in a note to investors Monday. In the latest rating, Compass Point reduced recommendation on WMC to neutral, down from buy rating on which it previously held the stock. The brokerage also interfered with its price objective on the stock, pronouncing $16 target price, down from $16.50 in the previous view.
By lowering rating on the stock and serving a bearish price target, the analysts suggests that the stock lacks clear visibility in its earnings and stock price growth.
More downgrades
Western Asset Mortgage Capital Corp (NYSE:WMC) was not the only victim of Compass Point bearish view. The brokerage also narrowed its price target and recommendation on the stock of America Capital Agency Corp. (NASDAQ:AGNC). They reduced the stock from a buy to a neutral rating and planted price target of $24, down from $24.50.
Different opinions
Opinions on the prospects of the stock of Western Asset Mortgage Capital Corp (NYSE:WMC) are varied across different rating firms. Zacks analysts, for instance, believe that the stock is poised to head in the right direction. Thus, they upgraded their view on the stock from “underperform” to “neutral”.
With eight analysts rating the stock a hold, one assigning buy and none raising red flag with sell, the stock on average has consensus hold recommendation and average price target of $17.61.
The stock shifted hands between $14.55 and $23.98 in the past 12-month time-frame. Thus, the average price target on the stock is slightly above the one-year low but a far cry from the one-year high.
Financial performance
Western Asset Mortgage Capital Corp (NYSE:WMC)’s most recent quarter results were not very encouraging. The company posted 70 cents EPS, falling short of consensus estimate of 72 cents. The figure was even far below $1.05 EPS that was realized in the same quarter a year prior. In the current fiscal year, analysts on average are looking for $2.67 EPS.
