WMC stock: buy or sell?

WMC stock price: $10.46 0.58% At close on December 6th, 2019

Updated on:
December 6th, 2019

0

Shares of Western Asset Mortgage Capital closed today at $10.46 after topping to a new all time high ($10.46) and stepped up a slightly good 0.58%. With Friday, it's been 5 climbing days in a row, soaring $0.18 or 1.76%.

Western Asset Mortgage Capital Corporation operates as a real estate investment trust in the United States. It primarily focuses on investing in, financing, and managing a portfolio of agency and non-agency residential mortgage-backed securities and commercial mortgage-backed securities, residential whole-loans, and other financial assets.

Should I buy WMC stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Following a trading strategy helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, 2 buy setups match with Western Asset Mortgage Capital stock now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Western Asset Mortgage Capital stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we found 1 rating published for WMC stock in the last 30 days.

Is WMC a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-23Bank of American/aBuy

WMC stock analysis

Daily outlook

Western Asset Mortgage Capital stepped up 0.58% today to $10.46 after marking all time highs today.

Western Asset Mortgage Capital stepped up 0.58% today to $10.46 after topping to all time highs today. Since September when WMC stock price broke up the SMA200d line, it gained $1.27 (13.82%). WMC shows a sign of strength in the short-term after finally breaking out above $10.36 on Nov/8 and marking a new rising bottom. Since SMA50d and SMA100d crossed up on October, WMC price climbed $0.51 per share (5.13%).

WMC stock chart (daily)

Weekly outlook

Western Asset Mortgage Capital shares peaked new all time highs back again this week, setting highs to $10.46. Shares ended at $10.46 and inched 1.75% during the week.

If you observe the weekly chart, price finally broke over the resistance at $9.88 and continued climbing. Since price and SMA40w lines crossed up early September, WMC climbed $1.35 (14.82%). Since late April when SMA20w and SMA40w crossed up, WMC price gained $0.57 per share (5.76%).

WMC stock chart (weekly)

WMC stock price history

WMC IPO was on May 11th, 2012 at $6.18 per share1. Since then, WMC stock surged a 69.30%, with an average of 9.90% per year. If you had invested $1,000 in WMC stock in 2012, it would worth $693.00 today.

1: Adjusted price after possible price splits or reverse-splits.

WMC stock historical price chart

WMC stock reached all-time highs today with a price of $10.46.

WMC stock price target is $10.50

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we only found 1 price target for Western Asset Mortgage Capital stock:
WMC stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-23Bank of AmericaReiterates$10.75$10.50-2.3%
(in average)$10.80$10.50-3.0%

Financials and fundamental analysis

Earnings date and Earnings per Share

Western Asset Mortgage Capital reported fine results for 2018-Q4 on March. Western Asset Mortgage Capital inched Earnings per Share (EPS) by 6.30%, beating analysts of $0.32. Western Asset Mortgage Capital posted $0.34.
WMC earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.63n/a
2017-Q2-n/a0.64n/a
2017-Q32017-11-070.330.32-3.0%
2017-Q42018-03-050.30.313.3%
2018-Q12018-05-07n/a0.34n/a
2018-Q22018-08-06n/a0.36n/a
2018-Q32018-11-07n/a0.33n/a
2018-Q42019-03-050.320.346.3%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2014, Western Asset Mortgage Capital annual revenues climbed an amazing 38.52% to $126.85 M USD from $91.57 marked in 2013. In line, its profit margin (compared to sales) skyrocketed to 79.40%, that is $100.71 million.

WMC annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$92 M-$-28.82 M-31.5%-
2014$127 M38.52%$101 M79.4%-449.46%

Quarterly financial results

Reported quarter earnings marked $-17.66 M with a profit margin of . Profit margin remained constant a 0.00% compared to previous quarter when profit margin was inf%. When comparing turnover to same quarter last year, Western Asset Mortgage Capital sales marked a chilling decrease and plunged a -100.00%. Looking back to recent quarterly results, Western Asset Mortgage Capital posted 5 positive quarters in a row.
WMC quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$44.54 M-$20 M45.2%-
2017-Q2$-150.77 M-438.50%$21 M-13.7%2.38%
2017-Q3$18.57 M-112.31%$23 M122.6%10.41%
2017-Q4$18.01 M-2.98%$21 M118.8%-5.99%

Western Asset Mortgage Capital ownership

When you are planning to invest in shares of a stock, it's always worth to review its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Western Asset Mortgage Capital, 0.62% of all outstanding shares are owned by its staff.

In case of Western Asset Mortgage Capital stock, 51.49% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for WMC stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Western Asset Mortgage Capital:

WMCANHIVRORCTWO
Market cap$556.7 M$352.9 M$2.3 B$358.8 M$4.0 B
Total shares53.2 M98.9 M142.8 M63.1 M272.9 M
Float shares49.8 M90.4 M142.4 M62.9 M270.4 M
  - Institutional holdings (%)51.5%54.1%60.0%35.4%58.2%
  - Insider holdings (%)0.6%1.9%0.3%0.4%0.9%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

WMC summary

Friday, December 6th, 2019
Open$10.39
Close$10.46
Day range$10.39 - $10.46
Previous close$10.40
Session gain0.58%
Average true range$0.09
50d mov avg$10.01
100d mov avg$9.78
200d mov avg$9.65
Daily patternlb02c
Weekly pattern lb01c

Western Asset Mortgage Capital performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We selected Anworth Mortgage Asset, INVESCO MORTGAGE CAPITAL, Orchid Island Capital and Two Harbors Investments as the bechmarking frame for Western Asset Mortgage Capital stock.
Stock3m6m12m
WMCWestern Asset Mor...12.84%15.45%18.19%
ANHAnworth Mortgage ...16.29%-2.99%-10.75%
IVRINVESCO MORTGAGE ...12.36%9.07%17.78%
ORCOrchid Island Cap...12.23%-1.22%0.18%
TWOTwo Harbors Inves...15.86%26.23%16.05%

Western Asset Mortgage Capital competitors

We picked a few stocks to conform a list of Western Asset Mortgage Capital competitors to check if you are interested in investing in WMC: