Annaly Capital Management, Inc. (NYSE: NLY) is a leading diversified capital manager, primarily investing in agency mortgage-backed securities (MBS). As a mortgage real estate investment trust (REIT), Annaly provides shareholders with income through a highly leveraged investment strategy in real estate finance.
Key Takeaways:
- Annaly’s portfolio spans agency mortgage-backed securities, residential mortgages, and commercial real estate, offering diverse investment exposure.
- NLY stock is projected for steady long-term growth, supported by strategic investments and strong market position.
- Investors should weigh both short-term market fluctuations and long-term growth potential when considering NLY stock.
Overview of Annaly Capital Management, Inc.
Annaly Capital Management, founded in 1997 by Michael A.J. Farrell and Wellington Denahan, has become a leading mortgage REIT in the United States. Based in New York City, the company has grown significantly since its inception, establishing itself as a major player in the real estate investment sector.
Through strategic acquisitions, Annaly has expanded its portfolio and market presence. Key purchases include Fixed Income Discount Advisory in 2004, CreXus Investment in 2013, and Hatteras Financial in 2016.
Annaly Capital Management, Inc. Company Profile
| Country | United States of America |
| Ticker Symbol | NLY |
| Exchange | NYSE |
| Founded | 1997 |
| IPO Date | 1997 |
| Industry | Mortgage REITs |
| Sector | Real Estate/Construction |
| Employees | 187 |
| CEO | David L. Finkelstein |
| Market Cap (September 18, 2024) | $10.36 billion |
| Website | annaly |
Annaly Capital Management, Inc. (NLY) Balance Sheet Analysis
Annaly Capital Management, Inc. (NYSE: NLY) reported its 2023 balance sheet, showing significant growth. Total assets increased to $93.23 billion from $81.85 billion in 2022, while total liabilities rose to $81.88 billion from $70.48 billion.
The company’s total equity remained relatively stable at $11.35 billion. However, total debt increased substantially to $13.20 billion from $8.80 billion in the previous year.
Annaly’s net tangible assets grew to $10.90 billion, up from $10.19 billion in 2022. The company’s total capitalization also increased to $23.96 billion from $19.82 billion.
Overall, Annaly’s 2023 balance sheet reflects a strategy of leveraged growth, with asset expansion primarily funded through increased liabilities, particularly debt.
Balance Sheet Data Source: finance.yahoo
Annaly Capital Management, Inc. Stock Price History
Annaly Capital Management, Inc. (NYSE: NLY) had its IPO in the year 1997. Annaly Capital Management (NLY) executed a single stock split on September 26, 2022. This 1:4 reverse split resulted in investors receiving one share for every four previously held. The cumulative multiple stands at 0.25x.1
As of September 17, 2024, the stock price stands at $20.71.
NLY Stock Price Forecast 2024
In 2024, we anticipate moderate growth in Annaly’s stock price. The company’s strong position in agency MBS, which comprise approximately 58% of total assets, is expected to drive this growth. Annaly’s focus on government-sponsored entity-backed securities provides a stable foundation for investor confidence.
The projected growth for 2024 is 11.06%, indicating a positive outlook for the company’s near-term performance. Annaly’s expertise in navigating the complex agency MBS market should continue to be a key strength in maintaining this growth momentum.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2024 | $18.50 | $23.00 | $27.60 |
NLY Stock Price Forecast 2025
As Annaly continues to optimize its portfolio, we expect the stock price to show more substantial growth in 2025. The company’s investments in non-agency residential mortgage assets, including non-QM loans and prime jumbo loans, are anticipated to contribute to improved performance.
With a projected growth of 11.96%, Annaly demonstrates its ability to capitalize on various segments of the residential mortgage market. The Annaly Residential Credit Group’s focus on both securitized products and whole loan markets provides additional avenues for revenue generation and portfolio expansion.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2025 | $24.00 | $25.75 | $32.19 |
NLY Stock Price Forecast 2026
In 2026, Annaly’s investments in mortgage servicing rights (MSRs) are expected to mature, potentially contributing to stronger stock performance. As of June 2024, MSRs represented 22% of Annaly’s total assets, providing a significant revenue stream through servicing fees.
The projected growth of 11.65% reflects the company’s strategic positioning in this sector. Annaly’s ability to balance its portfolio between agency MBS and MSRs demonstrates its adaptability to changing market conditions and interest rate environments.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2026 | $26.75 | $28.75 | $37.38 |
NLY Stock Price Forecast 2027
The company’s expansion into commercial real estate debt and equity is anticipated to yield positive results, reflecting in the stock price. These investments provide Annaly with exposure to a different segment of the real estate market, potentially enhancing overall portfolio performance.
With a projected growth of 12.17%, Annaly showcases its ability to successfully venture into new areas of investment. The company’s expertise in underwriting and managing commercial real estate assets complements its strong residential mortgage portfolio.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2027 | $30.00 | $32.25 | $43.54 |
NLY Stock Price Forecast 2028
As Annaly’s community development projects start showing returns, we expect this to positively impact investor sentiment and stock price. The company’s partnership with Capital Impact Partners has financed over 25 projects supporting affordable housing, community centers, and other vital infrastructure.
A projected growth of 11.63% indicates the potential value of these socially responsible investments. Annaly’s commitment to community development not only enhances its reputation but also provides a unique avenue for long-term value creation.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2028 | $33.50 | $36.00 | $50.40 |
NLY Stock Price Forecast 2029
The ongoing maturation of Annaly’s diverse investment portfolio is expected to drive continued stock price growth in 2029. The company’s balanced approach to agency MBS, non-agency residential mortgages, and commercial real estate investments provides multiple avenues for growth.
With a projected growth of 11.81%, Annaly demonstrates its ability to maintain steady performance. The company’s strategic allocation of assets across various real estate sectors helps mitigate risks and capitalize on different market opportunities.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2029 | $37.50 | $40.25 | $58.36 |
NLY Stock Price Forecast 2030
By 2030, Annaly’s strategic investments and market positioning are expected to result in significant stock price appreciation. The company’s long-standing expertise in navigating the mortgage REIT sector should continue to provide a competitive advantage in evolving market conditions, similar to how other REITs like CubeSmart adapt to market changes (see our CUBE stock prediction for more insights on self-storage REITs).
A projected growth of 11.80% reflects Annaly’s consistent performance. The company’s ability to adapt its investment strategy to changing economic conditions and regulatory environments remains a key strength.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2030 | $42.00 | $45.00 | $67.50 |
NLY Stock Price Forecast 2031
The company’s continued focus on optimizing its investment mix is anticipated to drive further stock price growth in 2031. Annaly’s ability to adjust its portfolio allocation between agency MBS, MSRs, and other assets allows for adaptability to changing market conditions.
With a projected growth of 12.22%, Annaly showcases its potential for sustained performance. The company’s deep understanding of both the residential and commercial real estate markets contributes to its ability to identify profitable investment opportunities.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2031 | $47.00 | $50.50 | $78.28 |
NLY Stock Price Forecast 2032
In 2032, we expect Annaly’s stock to continue its upward trend, benefiting from the company’s established market presence and strategic investments. The ongoing focus on both residential and commercial real estate assets provides a balanced approach to market opportunities.
A projected growth of 11.88% indicates Annaly’s ability to maintain steady performance. The company’s expertise in managing a diverse portfolio of real estate-related investments continues to be a key driver of its success.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2032 | $52.50 | $56.50 | $90.40 |
NLY Stock Price Forecast 2033
The ongoing maturation of Annaly’s investment portfolio is expected to drive sustained stock price growth in 2033. The company’s involvement in community development projects may continue to provide both social impact and financial returns, enhancing its reputation and investor appeal.
With a projected growth of 11.95%, Annaly demonstrates its ability to balance profitability with social responsibility. The company’s commitment to financing projects in rural and urban communities across the country contributes to its long-term value proposition.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2033 | $59.00 | $63.25 | $104.36 |
NLY Stock Price Forecast 2034
By 2034, Annaly’s long-term investment strategies are anticipated to yield significant returns, reflecting in the stock price. The company’s expertise in both agency and non-agency mortgage markets should continue to provide opportunities for growth and income generation.
A projected growth of 12.25% showcases Annaly’s potential for strong performance. The company’s ability to navigate complex mortgage markets and identify profitable investment opportunities remains a core strength.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2034 | $66.00 | $71.00 | $120.70 |
NLY Stock Price Forecast 2035
In 2035, we expect Annaly’s stock to continue its strong performance, driven by the company’s established market position and diverse investment portfolio. The ongoing balance between agency MBS, MSRs, and other real estate investments should provide stability and growth potential, much like diversified healthcare REITs (explore our Ventas stock forecast for a comparison in the healthcare REIT sector).
With a projected growth of 11.97%, Annaly demonstrates consistent performance. The company’s strategic approach to portfolio management and its ability to adapt to changing market conditions contribute to its long-term success.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2035 | $74.00 | $79.50 | $139.13 |
NLY Stock Price Forecast 2036
Annaly’s continued focus on optimizing its investment mix is expected to drive further stock price appreciation in 2036. The company’s ability to navigate interest rate cycles and adjust its portfolio accordingly should continue to be a key strength.
A projected growth of 11.95% reflects Annaly’s potential for sustained performance. The company’s expertise in managing a diverse range of real estate-related investments allows it to capitalize on various market opportunities.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2036 | $83.00 | $89.00 | $160.20 |
NLY Stock Price Forecast 2037
By 2037, we anticipate Annaly’s stock to show sustained growth, benefiting from the company’s long-term investment strategies. The ongoing focus on both residential and commercial real estate markets should provide multiple avenues for revenue generation and capital appreciation.
With a projected growth of 12.08%, Annaly demonstrates its ability to maintain strong performance. The company’s balanced approach to risk management and investment selection continues to drive its success in the REIT sector.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2037 | $93.00 | $99.75 | $184.54 |
NLY Stock Price Forecast 2038
In 2038, Annaly’s stock is expected to continue its upward trend, driven by the company’s established market presence and strategic investments. The company’s expertise in mortgage-backed securities and servicing rights should continue to provide a solid foundation for growth.
A projected growth of 12.03% indicates Annaly’s potential for consistent performance. The company’s ability to leverage its deep understanding of real estate markets contributes to its long-term success and investor appeal.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2038 | $104.00 | $111.75 | $212.33 |
NLY Stock Price Forecast 2039
The ongoing optimization of Annaly’s investment portfolio is anticipated to drive continued stock price growth in 2039. The company’s ability to adapt to changing market conditions and regulatory environments should remain a key strength in maintaining investor confidence.
With a projected growth of 12.08%, Annaly showcases its potential for sustained performance. The company’s strategic approach to portfolio management and its focus on maximizing returns across various real estate sectors contribute to its long-term value proposition.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2039 | $116.50 | $125.25 | $245.49 |
NLY Stock Price Forecast 2040
By 2040, we expect Annaly’s stock to show significant appreciation, reflecting the company’s long-term investment strategies and market positioning. While REITs focus on real estate, it’s interesting to compare with other sectors that impact the broader economy and healthcare system. For instance, our Cigna stock forecast provides insights into the health insurance industry, which can indirectly influence real estate markets through its effects on consumer spending and healthcare facility demand.
A projected growth of 11.98% demonstrates Annaly’s ability to maintain strong performance. The company’s expertise in navigating complex real estate markets and identifying profitable investment opportunities remains a core strength.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2040 | $130.50 | $140.25 | $282.90 |
NLY Stock Price Forecast 2050
Looking ahead to 2050, we project Annaly’s stock price to reach substantial levels, driven by decades of strategic investments and market growth. The company’s long-standing expertise in the mortgage REIT sector should continue to provide a competitive edge in evolving market conditions.
With a projected growth of 342.07% compared to 2040, Annaly demonstrates its potential for significant long-term appreciation. The company’s ability to adapt to changing market dynamics and capitalize on emerging opportunities in the real estate sector contributes to its projected success.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2050 | $552.00 | $620.00 | $1,240.00 |
Conclusion
Our analysis suggests that Annaly Capital Management’s stock price has the potential for significant long-term growth. We project a increase to $620.00, representing a remarkable 2894% growth over 26 years. This growth is expected to be driven by Annaly’s diverse investment portfolio, strategic market positioning, and ongoing optimization of its assets.
FAQs
1. What is the future of NLY share price?
Based on our analysis, the future of Annaly Capital Management’s (NLY) share price appears promising. We project steady growth from $20.71 in 2024 to $620.00 by 2050. This represents a potential increase of nearly 2894% over 26 years. The company’s diverse investment portfolio, including agency mortgage-backed securities, non-agency residential mortgage assets, and commercial real estate investments, is expected to drive this growth.
2. Is NLY a good long-term stock?
NLY could be considered a good long-term stock for investors seeking exposure to the real estate investment trust (REIT) sector. The company’s established market presence, diverse investment strategy, and history of adapting to changing market conditions support its potential for long-term growth.
Additionally, as a REIT, NLY is required to distribute a significant portion of its taxable income to shareholders, which may appeal to income-focused investors.
3. What is the NLY 10 year outlook?
Our 10-year outlook for NLY is positive. We project the stock price to grow from $23.00 in 2024 to $71.00 in 2034, representing a potential increase of about 209%.
This growth is expected to be driven by Annaly’s strategic investments in agency mortgage-backed securities, mortgage servicing rights, and commercial real estate. The company’s ability to navigate interest rate cycles and adapt its portfolio mix should contribute to its performance over this period.
4. Is NLY a buy hold or sell?
Based on our analysis and projections, NLY could be considered a “buy” or “hold” for long-term investors. The company’s strong position in agency MBS, growing MSR business, and investments in non-agency residential and commercial real estate assets provide multiple growth avenues, make it an attractive option for those looking to add a REIT to their portfolio.
5. Who are the major competitors of NLY?
Annaly Capital Management operates in the mortgage REIT sector, which includes several major competitors:
- AGNC Investment Corp. (NASDAQ: AGNC): Specializes in mortgage-backed securities, primarily agency MBS, providing income by investing in residential mortgage assets.
- Chimera Investment Corporation (NYSE: CIM): Invests in mortgage loans and securities, aiming to deliver high returns through diversified residential mortgage-backed assets.
- New Residential Investment Corp. (NYSE: NRZ): Focuses on real estate and related assets, including mortgage servicing rights and residential mortgage-backed securities.
- Two Harbors Investment Corp. (NYSE: TWO): Invests in residential mortgage-backed securities, mortgage servicing rights, and other financial assets to generate income.
- Invesco Mortgage Capital Inc. (NYSE: IVR): Operates in mortgage-backed securities, with a focus on both residential and commercial MBS to achieve income growth.
- Hatteras Financial Corp. (formerly NYSE: HTS): Specialized in residential mortgage-backed securities, it merged with Annaly, but was a key competitor before acquisition.
- Dynex Capital, Inc. (NYSE: DX): A REIT that focuses on residential and commercial mortgage-backed securities to provide consistent shareholder returns.
- MFA Financial, Inc. (NYSE: MFA): Primarily invests in residential mortgage assets, including non-agency MBS and credit-sensitive loans, targeting steady income.
- Capstead Mortgage Corporation (NYSE: CMO): Operates in adjustable-rate mortgage securities backed by residential loans to maintain a stable income profile for investors.
- ARMOUR Residential REIT, Inc. (NYSE: ARR): Focuses on agency residential mortgage-backed securities, delivering high dividend yields through leveraged investments.
Disclaimer:
The stock price predictions provided herein are based on historical data, current market trends, and analysis. However, past performance does not guarantee future results. Stock markets are inherently volatile and subject to numerous economic, political, and market factors that can cause rapid and unpredictable fluctuations in stock prices. The information provided is for educational and informational purposes only and should not be construed as financial advice. It is strongly recommended that you consult with a qualified financial advisor before making any investment decisions. Invest responsibly and consider your individual financial situation, risk tolerance, and investment objectives before acting on any information provided.
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