Armour Residential Reit Preferred Stock Buy Hold or Sell Recommendation
| ARR-PC Preferred Stock | USD 22.55 0.18 0.80% |
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding ARMOUR Residential REIT is 'Strong Sell'. Macroaxis provides ARMOUR Residential buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding ARR-PC positions.
Check out ARMOUR Residential Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as ARMOUR and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards ARMOUR Residential REIT. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
ARMOUR |
Execute ARMOUR Residential Buy or Sell Advice
The ARMOUR recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on ARMOUR Residential REIT. Macroaxis does not own or have any residual interests in ARMOUR Residential REIT or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute ARMOUR Residential's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | About Average | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
ARMOUR Residential Trading Alerts and Improvement Suggestions
| ARMOUR Residential REIT has accumulated 4.52 B in total debt with debt to equity ratio (D/E) of 5.07, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. ARMOUR Residential REIT has a current ratio of 0.09, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist ARMOUR Residential until it has trouble settling it off, either with new capital or with free cash flow. So, ARMOUR Residential's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like ARMOUR Residential REIT sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for ARMOUR to invest in growth at high rates of return. When we think about ARMOUR Residential's use of debt, we should always consider it together with cash and equity. |
ARMOUR Residential Returns Distribution Density
The distribution of ARMOUR Residential's historical returns is an attempt to chart the uncertainty of ARMOUR Residential's future price movements. The chart of the probability distribution of ARMOUR Residential daily returns describes the distribution of returns around its average expected value. We use ARMOUR Residential REIT price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of ARMOUR Residential returns is essential to provide solid investment advice for ARMOUR Residential.
| Mean Return | 0.07 | Value At Risk | -1.29 | Potential Upside | 1.00 | Standard Deviation | 0.68 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of ARMOUR Residential historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
ARMOUR Residential Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to ARMOUR Residential or Real Estate sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that ARMOUR Residential's price will be affected by overall preferred stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a ARMOUR preferred stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.06 | |
β | Beta against Dow Jones | -0.02 | |
σ | Overall volatility | 0.69 | |
Ir | Information ratio | -0.09 |
ARMOUR Residential Volatility Alert
ARMOUR Residential REIT has low volatility with Treynor Ratio of -3.8, Maximum Drawdown of 3.96 and kurtosis of 2.17. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure ARMOUR Residential's preferred stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact ARMOUR Residential's preferred stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.ARMOUR Residential Fundamentals Vs Peers
Comparing ARMOUR Residential's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze ARMOUR Residential's direct or indirect competition across all of the common fundamentals between ARMOUR Residential and the related equities. This way, we can detect undervalued stocks with similar characteristics as ARMOUR Residential or determine the preferred stocks which would be an excellent addition to an existing portfolio. Peer analysis of ARMOUR Residential's fundamental indicators could also be used in its relative valuation, which is a method of valuing ARMOUR Residential by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare ARMOUR Residential to competition |
| Fundamentals | ARMOUR Residential | Peer Average |
| Return On Equity | -0.28 | -0.31 |
| Return On Asset | -0.0365 | -0.14 |
| Operating Margin | 1.15 % | (5.51) % |
| Current Valuation | 5.21 B | 16.62 B |
| Shares Owned By Institutions | 12.39 % | 39.21 % |
| Number Of Shares Shorted | 8.07 K | 4.71 M |
| Revenue | 19.17 M | 9.43 B |
| Gross Profit | 50.28 M | 27.38 B |
| EBITDA | 22.47 M | 3.9 B |
| Net Income | 15.36 M | 570.98 M |
| Cash And Equivalents | 261.5 M | 2.7 B |
| Cash Per Share | 4.04 X | 5.01 X |
| Total Debt | 4.52 B | 5.32 B |
| Debt To Equity | 5.07 % | 48.70 % |
| Current Ratio | 0.09 X | 2.16 X |
| Book Value Per Share | 7.12 X | 1.93 K |
| Cash Flow From Operations | 11.74 M | 971.22 M |
| Short Ratio | 0.57 X | 4.00 X |
| Earnings Per Share | (1.54) X | 3.12 X |
| Number Of Employees | 6 | 18.84 K |
| Beta | 1.2 | -0.15 |
| Total Asset | 5.28 B | 29.47 B |
| Annual Yield | 0.08 % | |
| Net Asset | 5.28 B | |
| Last Dividend Paid | 1.2 |
ARMOUR Residential Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as ARMOUR . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About ARMOUR Residential Buy or Sell Advice
When is the right time to buy or sell ARMOUR Residential REIT? Buying financial instruments such as ARMOUR Preferred Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Other Information on Investing in ARMOUR Preferred Stock
ARMOUR Residential financial ratios help investors to determine whether ARMOUR Preferred Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in ARMOUR with respect to the benefits of owning ARMOUR Residential security.