Company profile

Ticker
CMO
Exchange
CEO
Phillip A. Reinsch
Employees
Incorporated in
Location
Fiscal year end
SEC CIK
IRS number
752027937

CMO stock data

(
)

Calendar

5 May 20
3 Jul 20
31 Dec 20

News

Company financial data Financial data

Quarter (USD) Mar 20 Dec 19 Sep 19 Jun 19
Net income -204.65M 32.67M 3.2M -63.46M
Diluted EPS -2.21 0.29 -0.02 -0.8
Net change in cash 224.05M 37.19M -111.27M 147.05M
Cash on hand 329.45M 105.4M 68.2M 179.48M
Annual (USD) Dec 19 Dec 18 Dec 17 Dec 16
Net income -35.34M 50.07M 79.59M 82.87M
Diluted EPS -0.62 0.34 0.65 0.7
Net change in cash 45.11M -43.62M 47.18M 2.55M
Cash on hand 105.4M 60.29M 103.91M 56.73M

Financial data from company earnings reports

Date Owner Security Transaction Code $Price #Shares $Value #Remaining
6 May 20 Bernard John L Common Stock Buy Aquire P 4.95 10,000 49.5K 114,319
5 May 20 Phillip A Reinsch 7.50% Series E Cumulative Redeemable Preferred Stock Buy Aquire P 22.175 3,500 77.61K 3,500
5 May 20 Phillip A Reinsch Common Stock Buy Aquire P 5.0697 10,000 50.7K 424,410
4 May 20 Phillip A Reinsch Common Stock Buy Aquire P 4.8482 10,000 48.48K 414,410
4 May 20 Bernard John L Common Stock Buy Aquire P 4.8085 15,000 72.13K 104,319
1 May 20 Phillips Lance Common Stock Buy Aquire P 4.9746 10,000 49.75K 90,885
5 Mar 20 Roy Kim Common Stock Buy Aquire P 7.6285 10,800 82.39K 174,377
31 Jan 20 Michael G Oneil Common Stock Sell Dispose S 8.2504 850 7.01K 1,000
13F holders
Current Prev Q Change
Total holders 152 164 -7.3%
Opened positions 24 30 -20.0%
Closed positions 36 28 +28.6%
Increased positions 48 56 -14.3%
Reduced positions 42 47 -10.6%
13F shares
Current Prev Q Change
Total value 336.35M 639.83M -47.4%
Total shares 79.97M 80.26M -0.4%
Total puts 34.2K 0 +Infinity%
Total calls 0 0
Total put/call ratio Infinity
Largest owners
Shares Value Change
BLK BlackRock 16.43M $68.99M -0.4%
Vanguard 10.1M $42.43M +5.0%
N Price T Rowe Associates 7.63M $32.03M +1.2%
Paradice Investment Management 6.65M $27.93M -1.2%
STT State Street 3.36M $14.62M +3.0%
NTRS Northern Trust 3.03M $12.73M +0.0%
IVZ Invesco 3M $12.58M -11.7%
Acadian Asset Management 2.97M $12.46M +31.2%
Renaissance Technologies 2.73M $11.48M +40.1%
BAC Bank of America 1.86M $7.83M -3.9%
Largest transactions
Shares Bought/sold Change
UBS UBS 96K -2.04M -95.5%
Norges Bank 0 -1.4M EXIT
GS The Goldman Sachs Group, Inc. 1.52M +1.25M +458.0%
Balyasny Asset Management 903.58K +903.58K NEW
Renaissance Technologies 2.73M +782.5K +40.1%
WINTON 203.19K -707.16K -77.7%
Acadian Asset Management 2.97M +705.25K +31.2%
Guggenheim Capital 627.5K +627.5K NEW
JPM JPMorgan Chase & Co. 567.32K +515.07K +985.6%
Citadel Advisors 604.93K +485.28K +405.6%

Financial report summary

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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 consisting almost exclusively of 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.  See NOTE 1 to the consolidated financial statements (included under Item 1 of this report) for defined terms used in this discussion and analysis.  By investing in short-duration ARM Agency Securities, the Company is positioned to benefit from future recoveries in financing spreads and experience smaller fluctuations in portfolio values compared to leveraged portfolios containing a significant amount of longer-duration ARM or fixed-rate mortgage securities.  Duration is a common measure of market price sensitivity to interest rate movements.  A shorter duration generally indicates less interest rate risk.
  • Capstead reported for GAAP purposes a net loss of $205 million representing a loss per diluted common share of $(2.21) for the quarter ended March 31, 2020. The Company reported core earnings of $20 million or $0.16 per diluted common share for the quarter ended March 31, 2020.  See “Reconciliation of GAAP and non-GAAP Financial Measures” for more information on core earnings. The GAAP loss includes $156 million in losses on hedging-related derivatives due primarily to declining interest rates and $68 million in losses on the sale of $2.60 billion (basis) in ARM securities late in the quarter in order to ensure the Company had sufficient flexibility to meet future projected liquidity requirements while maintaining portfolio leverage at comfortable levels given disruptions experienced in the fixed income markets brought on by the novel coronavirus (“COVID-19”) pandemic. At March 31, 2020, the Company has met is liquidity requirements and given current conditions does not expect to make similar sales. GAAP and core earnings in the first quarter of 2020 benefited from lower secured borrowings rates primarily due to a total of 150 basis points in reductions in the Fed Funds rate in March and favorable terms on new interest rate swap agreements entered into during the quarter. These benefits more than offset lower portfolio yields due to lower coupon interest rates on loans underlying the Company’s ARM Agency Securities as well as changes in lifetime prepayment estimates. Book value per common share declined $2.55 per share during the quarter to $6.07 per share at March 31, 2020 primarily due to the derivative- and portfolio-related declines noted above.
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