Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

Our 80,000 qualified print subscribers—and 130,000 12-month engaged online audience—trust us to dive in and provide original journalism you won’t find elsewhere covering key emerging areas such as laser-driven inertial confinement fusion, lasers in space, integrated photonics, chipscale lasers, LiDAR, metasurfaces, high-energy laser weaponry, photonic crystals, and quantum computing/sensors/communications. We cover the innovations driving these markets.

Laser Focus World is part of Endeavor Business Media, a division of EndeavorB2B.

Laser Focus World Membership

Never miss any articles, videos, podcasts, or webinars by signing up for membership access to Laser Focus World online. You can manage your preferences all in one place—and provide our editorial team with your valued feedback.

Magazine Subscription

Can you subscribe to receive our print issue for free? Yes, you sure can!

Newsletter Subscription

Laser Focus World newsletter subscription is free to qualified professionals:

The Daily Beam

Showcases the newest content from Laser Focus World, including photonics- and optics-based applications, components, research, and trends. (Daily)

Product Watch

The latest in products within the photonics industry. (9x per year)

Bio & Life Sciences Product Watch

The latest in products within the biophotonics industry. (4x per year)

Laser Processing Product Watch

The latest in products within the laser processing industry. (3x per year)

Get Published!

If you’d like to write an article for us, reach out with a short pitch to Sally Cole Johnson: [email protected]. We love to hear from you.

Photonics Hot List

Laser Focus World produces a video newscast that gives a peek into what’s happening in the world of photonics.

Following the Photons: A Photonics Podcast

Following the Photons: A Photonics Podcast dives deep into the fascinating world of photonics. Our weekly episodes feature interviews and discussions with industry and research experts, providing valuable perspectives on the issues, technologies, and trends shaping the photonics community.

Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Why Are Bears Still Going Short on AGNC Investment?

Why Are Bears Still Going Short on AGNC Investment?

The short-interest ratio for AGNC Investment (NASDAQ: AGNC) spiked hard in October and now the ratio sits at around 5.23% of its total market float. 

27,110,000 shares were sold short ending on October 31, which represents an 11.3% increase from 24,350,000 on October 15th.

Although short interest for the REIT stock has now almost halved, there are some lingering weaknesses in its fundamentals.

Let’s cover what those weaknesses are to see if we can figure out why bears are going short on AGNC.

Why Are Short-Sellers Targeting the AGNC Investment Stock?

There is undoubtedly some pessimism that surrounds AGNC in the form of some recent price target downgrades with 5 in total starting from the beginning of October. Its stock price has also been heavily reduced in a short period of time as it's down 38.77%.

At present, the consensus on Wall Street is that AGNC’s stock is a moderate buy based on six analysts who follow the company. The MarketBeat consensus price target stands at $10.10 per share, thus giving it a 6.77% upside at the time of writing.

However, when comparing this rating side by side with its peers in the financial industry, things begin to fall apart. The predicted upside for financial stocks as an aggregate is 64.74%.

Meanwhile, companies in the S&P 500 also have a larger upside than AGNC at 15.26%.

Pessimistic Earnings Forecast

Something that could be driving these downgrades and interest from short sellers is that its earnings are predicted to decrease in the coming year.

AGNC’s earnings are poised to shrink from $3.04 to $2.19 per share. 

Peeling back the curtain further is that, the REIT posted a $666 million loss in net income for the quarter ending September 2022. In the same period in 2021, AGNC reported a $187 million gain.

This loss of $666 million is also not accounting for $1.73 billion in net unrealized losses on investment securities measured at fair value through net income.

The Bottom Line

Significant downturns in the real estate markets likely turned investor sentiment against AGNC over the short term. Also, it may have surprised the market with its results from the most recent quarter, which caused a surge in short interest.

But now that the bad news has already been priced in, there is less reason for shorts to keep piling on the stock, thus giving bulls some much-needed relief from the downward pressure.

Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms Of Service.