Is Selling Western Asset Mortgage Capital Corp Here a Winning Strategy?

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The stock of Western Asset Mortgage Capital Corp (NYSE:WMC) hit a new 52-week low and has $9.46 target or 11.00% below today’s $10.63 share price. The 5 months bearish chart indicates high risk for the $462.38 million company. The 1-year low was reported on Dec, 12 by If the $9.46 price target is reached, the company will be worth $50.86M less.
The 52-week low event is an important milestone for every stock because it shows very negative momentum and is time when sellers come in. During such technical setups, fundamental investors usually stay away and are careful buying the stock. The stock decreased 3.63% or $0.4 on December 11, hitting $10.63. About 594,277 shares traded hands or 23.82% up from the average. Western Asset Mortgage Capital Corp (NYSE:WMC) has declined 28.29% since May 11, 2015 and is downtrending. It has underperformed by 23.88% the S&P500.

Out of 6 analysts covering Western Asset Mortgage Capital (NYSE:WMC), 1 rate it “Buy”, 0 “Sell”, while 6 “Hold”. This means 14% are positive. Western Asset Mortgage Capital was the topic in 4 analyst reports since August 4, 2015 according to StockzIntelligence Inc.

According to Zacks Investment Research, “Western Asset Mortgage Capital Corporation is focused on investing in, financing and managing primarily residential mortgage-backed securities for which the principal and interest payments are guaranteed by a U.S. Government agency or federally chartered corporation. Western Asset Mortgage Capital Corporation is headquartered in Pasadena, California.” Get a free copy of the Zacks research report on Western Asset Mortgage Capital Corp (WMC).

The institutional sentiment decreased to 1.17 in Q3 2015. Its down 0.67, from 1.84 in 2015Q2. The ratio turned negative, as 17 funds sold all Western Asset Mortgage Capital Corp shares owned while 25 reduced positions. 10 funds bought stakes while 39 increased positions. They now own 10.81 million shares or 9.48% less from 11.94 million shares in 2015Q2.

Global X Management Co Llc holds 0.48% of its portfolio in Western Asset Mortgage Capital Corp for 487,154 shares. Counsel Portfolio Services Inc. owns 273,431 shares or 0.37% of their US portfolio. Moreover, Alpine Woods Capital Investors Llc has 0.23% invested in the company for 334,933 shares. The Connecticut-based Ellington Management Group Llc has invested 0.11% in the stock. Edge Wealth Management Llc, a New York-based fund reported 22,000 shares.

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