Capstead Mortgage (CMO)

Formed in 1985 and based in Dallas, Texas, Capstead is a self-managed real estate investment trust, or REIT, for federal income tax purposes. The Company earns income from investing in a leveraged portfolio of residential adjustable-rate mortgage pass-through securities, referred to as ARM securities, issued and guaranteed by government-sponsored enterprises, either Fannie Mae or Freddie Mac, or by an agency of the federal government, Ginnie Mae.

Company profile

Ticker

CMO, CMO-PE

Exchange

NYSE

Website

www.capstead.com

CEO

Phillip Reinsch

Incorporated

Maryland

Location

Texas

Fiscal year end

Dec 31

Sector

Finance and Insurance > Other Financial Vehicles

Industry (SIC)

Real Estate Investment Trusts

Annaly Capital Management • AGNC Investment • Simon Property • VEREIT • Prologis • Vornado Realty Trust • Vornado Realty • Welltower • Healthpeak Properties • Erp Operating LTD Partnership ...

SEC CIK

0000766701

Corporate docs

Articles of Incorporation & Bylaws

Underwriting Agreements

Plans of Reorganization

Indentures

Material Contracts & Credit Agreements

Subsidiaries Lists

IRS number

752027937

CMO stock data

1M 1Y 5Y

Calendar

3 Aug 21

9 Aug 22

31 Dec 22

Financial summary

Financial statements Chart CMO financial data

Quarter (USD)	Jun 21	Mar 21	Dec 20	Sep 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Annual (USD)	Dec 20	Dec 19	Dec 18	Dec 17
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Cash burn rate (est.)	Burn method: Change in cash		Burn method: Operating income		Burn method: FCF (opex + capex)
	Last Q	Avg 4Q	Last Q	Avg 4Q	Last Q	Avg 4Q
Cash on hand (at last report)	207.39M	207.39M	207.39M	207.39M	207.39M	207.39M
Cash burn (monthly)	17.28M	(no burn)	177.67K	408.5K	(no burn)	(no burn)
Cash used (since last report)	230.53M	n/a	2.37M	5.45M	n/a	n/a
Cash remaining	-23.14M	n/a	205.02M	201.94M	n/a	n/a
Runway (months of cash)	-1.3	n/a	1154.0	494.4	n/a	n/a

Beta Read what these cash burn values mean

Financial data from company earnings reports.

Recent insider trades

CMO insider ownership history Insider history

Date	Owner	Security	Transaction	Code	Indirect	10b5-1	#Shares
19 Oct 21	Patsy Joseph Augustine	Common Stock	Sale back to company	Dispose D	No	No	15,970
19 Oct 21	Mahowald Christopher W	Common Stock	Sale back to company	Dispose D	No	No	273,864
19 Oct 21	Whiting Mark S	Common Stock	Sale back to company	Dispose D	No	No	94,405
19 Oct 21	Goolsby Michelle P	Common Stock	Sale back to company	Dispose D	No	No	72,695
19 Oct 21	Oneil Michael G	Common Stock	Sale back to company	Dispose D	No	No	97,709

Data from 3, 4 and 5 filings. Values as filed, not updated for current price.

Institutional ownership, Q4 2021

CMO institutional ownership history Ownership history

13F holders	Current	Prev Q	Change
Total holders	0	135	EXIT
Opened positions	0	18	EXIT
Closed positions	135	25	+440.0%
Increased positions	0	50	EXIT
Reduced positions	0	41	EXIT

13F shares	Current	Prev Q	Change
Total value	0	484.15M	EXIT
Total shares	0	72.32M	EXIT
Total puts	0	0
Total calls	0	29.1K	EXIT
Total put/call ratio	–	–	–

Largest owners	Shares	Value	Change

Largest transactions	Bought/sold	Change
BLK Blackrock	-17.38M	EXIT
Vanguard	-10.14M	EXIT
TROW T. Rowe Price	-6M	EXIT
Paradice Investment Management	-4.2M	EXIT
IVZ Invesco	-4.19M	EXIT
Geode Capital Management	-3.42M	EXIT
STT State Street	-3.36M	EXIT
BAC Bank Of America	-2M	EXIT
Mirae Asset Global Investments	-1.58M	EXIT
Orchard Capital Managment	-1.39M	EXIT

Data from 13F filings, for the last complete 13F reporting period. For most recent data, click the ownership history button. Values as filed, not updated for current price. Long positions only.

Financial report summary

Management Discussion

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL
Capstead operates as a self-managed REIT earning income from investing in a leveraged portfolio of residential mortgage pass-through securities primarily consisting of relatively short-duration ARM Agency Securities, which reset to more current interest rates within a relatively short period of time and are considered to have limited, if any, credit risk. By investing in ARM Agency Securities, the Company is positioned to benefit from future recoveries in financing spreads that typically contract during periods of rising interest rates and to experience smaller fluctuations in portfolio values compared to leveraged portfolios containing a significant amount of fixed-rate mortgage securities.
Capstead reported for GAAP purposes net income of $16 million and $34 million representing $0.11 and $0.26 per diluted common share for the quarter and six months ended June 30, 2021, respectively. The Company reported core earnings of $14 million and $31 million or $0.09 and $0.22 per diluted common share for the quarter and six months ended June 30, 2021, respectively. See “Reconciliation of GAAP and non-GAAP Financial Measures” for more information on core earnings.

Content analysis

Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability	H.S. senior V bad

New words: absence, accelerate, affirmative, announced, announcement, BSPRT, cancelled, case, cent, community, conformity, consummate, contemplated, correct, counsel, declared, Delaware, delivery, distributed, diverted, enjoy, entitled, entry, exceed, failed, forma, fractional, impression, issuable, July, liable, lieu, listing, LLC, Maryland, merge, merger, minimum, multiplied, nature, nearest, organized, par, Parent, party, pendency, preceding, pro, product, provision, publicity, quotient, Realty, receding, receipt, reclassification, registration, renamed, reverse, Rodeo, rounded, rounding, satisfied, seeking, set, split, Stockholder, strategic, Street, subsidiary, taxation, thereof, thereon, transaction, true, vote, York

Removed: continuously, excludable, size

From filing 10-Q 2021 Q2

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