Compass Point Reiterates a 'Buy' on Newcastle Investment (NCT); Possible Disappointment From Unchanged Dividend
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Price: $5.95 +4.02%
Rating Summary:
5 Buy, 0 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
5 Buy, 0 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade NCT Now!
Compass Point reiterates a 'Buy' on Newcastle Investment (NYSE: NCT) price target of $9.00.
Analyst, Jason Stewart, said, "NCT declared a 2Q12 dividend of $0.20 per share after the market close yesterday. The dividend was unchanged QoQ. While some investors may have had expectations for a dividend increase, the delays in closing the most recent Bank of America (NYSE: BAC)(Not Covered) and Aurora portfolios combined with the most recent May capital raise had lowered the odds of a dividend increase in 2Q12. We still expect there to be upward momentum to the dividend in 3Q12 as additional investments are announced and close. Once NCT fully invests their capital, the company has guided to a dividend of between $0.23 and $0.25 per share. Our initial estimates are slightly higher, though admittedly we would like to see more detail on portfolio performance before putting a stake in the ground. Based on the June 13, 2012 closing price, NCT yields 12.7% on an annualized basis."
For an analyst ratings summary and ratings history on Newcastle Investment click here. For more ratings news on Newcastle Investment click here.
Shares of Newcastle Investment closed at $6.32 yesterday, with a 52 week range of $3.56-$7.31.
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Analyst, Jason Stewart, said, "NCT declared a 2Q12 dividend of $0.20 per share after the market close yesterday. The dividend was unchanged QoQ. While some investors may have had expectations for a dividend increase, the delays in closing the most recent Bank of America (NYSE: BAC)(Not Covered) and Aurora portfolios combined with the most recent May capital raise had lowered the odds of a dividend increase in 2Q12. We still expect there to be upward momentum to the dividend in 3Q12 as additional investments are announced and close. Once NCT fully invests their capital, the company has guided to a dividend of between $0.23 and $0.25 per share. Our initial estimates are slightly higher, though admittedly we would like to see more detail on portfolio performance before putting a stake in the ground. Based on the June 13, 2012 closing price, NCT yields 12.7% on an annualized basis."
For an analyst ratings summary and ratings history on Newcastle Investment click here. For more ratings news on Newcastle Investment click here.
Shares of Newcastle Investment closed at $6.32 yesterday, with a 52 week range of $3.56-$7.31.
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