Armour Residential REIT, Inc. (ARR)

Price$16.35Cached quoteAs of 2026-09-06 03:46 UTC

AI: Fair-priced

Price checkThe stock trades below reported book value, but the discount is not large enough to erase risk.

At the latest quoted price, ARMOUR is about 7% below June 30 book value per share of $17.53. For a mortgage REIT, book value is a practical valuation anchor because most assets are market-priced securities. The current monthly dividend run rate implies a very high yield, but that yield mainly compensates for leverage and rate sensitivity. A modest discount looks reasonable rather than obviously cheap, supporting a Fair-priced view.

Big pictureEarnings support the dividend today, while short-term borrowing keeps cash durability tied to market access.

Q2 distributable earnings were $0.72 per common share, exactly matching the quarter's $0.72 of common dividends, while net interest income reached $76.8 million. By July 31, liquidity was $1.27 billion, but repo borrowing was $19.31 billion with only 16 days of weighted-average remaining term. Repo means short-term loans secured by the securities portfolio. The liquidity cushion helps absorb margin calls, yet frequent refinancing leaves cash durability dependent on functioning funding markets.

Business strengthAgency-backed assets lower credit risk, but returns remain highly sensitive to rates, spreads, and hedges.

ARMOUR's July-end portfolio was $21.93 billion and heavily concentrated in Agency mortgage-backed securities, which carry government or government-sponsored credit support. That limits borrower-default risk, not market-value risk. Debt-to-equity was 7.6 times and implied leverage 7.9 times, so small asset-price moves can meaningfully change book value. Q2 still delivered a 4.8% total economic return and a modest book-value gain, showing hedges can work, but the business remains cyclical and rate-sensitive.

What could change the storyA friendlier rate cycle could lift book value; renewed volatility or dilution could overwhelm the discount.

The bull case assumes funding costs ease faster than mortgage-asset yields, Agency MBS spreads tighten, hedges remain effective, and the dividend stays covered; that could lift book value and close the stock's discount. The bear case is higher or more volatile long-term rates, wider MBS spreads, costlier repo funding, or faster prepayments, any of which can pressure earnings and book value. ARMOUR also expanded its at-the-market program by 25 million shares after issuing 12.7 million common shares in Q2; issuance below book value would dilute per-share value.

AI: News

September dividend heldARMOUR kept its September common dividend unchanged, preserving the monthly payout run rate for another month.

On August 27, ARMOUR declared its September common-stock dividend at $0.24 per share, with a September 15 record date and September 29 payment date. The unchanged payout supports near-term income visibility, but the company reiterated that future dividends remain a board decision based on results, cash flows, financial condition, capital needs, and market conditions. Because Q2 distributable earnings only matched quarterly common dividends, the payout still has little earnings cushion.

July-end leverage updateThe July portfolio update showed stable leverage, robust liquidity, and a slightly larger securities portfolio.

In an August 14 filing with data through July 31, ARMOUR reported a $21.93 billion portfolio, debt-to-equity of 7.6 times, implied leverage of 7.9 times, and $1.27 billion of liquidity. Repo borrowings totaled $19.31 billion and had a weighted-average remaining term of 16 days. The update suggests liquidity remained substantial, but the very short funding profile means market access and collateral values remain important to day-to-day resilience.

ATM capacity expandedARMOUR increased its at-the-market share capacity, preserving funding flexibility while raising dilution risk.

On July 24, ARMOUR amended its equity sales agreement to add 25 million common shares that may be sold through its at-the-market program. The added capacity gives management another source of equity for buying mortgage assets and supporting liquidity. It also creates a meaningful dilution overhang: future issuance can be beneficial when shares are sold at attractive values, but issuing stock below book value can reduce book value per existing share.

Q2 returned to profitSecond-quarter results improved sharply, with positive economic return and distributable earnings matching common dividends.

On July 22, ARMOUR reported Q2 GAAP net income attributable to common holders of $111.5 million, a 4.8% total economic return, and June 30 book value per common share of $17.53, up 0.6% from March. Distributable earnings were $0.72 per common share, exactly matching the quarter's common dividends. The company also raised $218.7 million through issuance of 12.7 million common shares, showing continued reliance on equity capital to expand the portfolio.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009
Revenue	$332.0M	−$478,000	−$62.6M	−$225.9M	—	—	—	—	—	—	—	—	—	—	—	—	—
Operating expenses	$61.3M	$60.3M	$50.2M	$45.6M	$43.5M	$40.8M	$38.5M	$37.0M	$35.8M	$37.5M	$36.9M	$37.6M	$37.2M	$25.4M	$9.7M	$1.7M	$2.0M
Net income	$322.7M	−$14.4M	−$67.9M	−$229.9M	$15.4M	−$215.1M	−$249.9M	−$106.0M	$181.2M	−$45.5M	−$31.2M	−$179.0M	−$187.0M	$222.3M	−$9.4M	$6.5M	−$1.1M
Net profit margin	97.20%	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Basic EPSper basic share	$3.31	-$0.51	-$1.86	-$10.25	$0.24	-$17.85	-$22.95	-$14.60	$21.10	-$8.35	-$5.45	-$21.60	-$22.00	$39.60	-$6.00	$44.80	-$4.40
Diluted EPSper diluted share	$3.30	-$0.51	-$1.86	-$10.25	$0.24	-$17.85	-$22.95	-$14.60	$20.85	-$8.35	-$5.45	-$21.60	-$22.00	$39.20	-$6.00	$44.80	$6.40

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

14.65%of listed shares

BlackRock, Inc.19.97M shares · Jun 30, 2026

View holders

Top 20 reported holders of ARR
Holder	% owned
BlackRock, Inc.	14.65%19.97M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	5.21%7.11M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.10%5.59M shares
STATE STREET CORP	3.48%4.75M shares
GEODE CAPITAL MANAGEMENT, LLC	2.36%3.22M shares
MORGAN STANLEY	2.02%2.75M shares
MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd.	1.83%2.5M shares
D. E. Shaw & Co., Inc.	1.61%2.2M shares
JUPITER ASSET MANAGEMENT LTD	1.58%2.15M shares
Invesco Ltd.	1.47%2.01M shares
AMERIPRISE FINANCIAL INC	1.19%1.62M shares
NORTHERN TRUST CORP	0.99%1.35M shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	0.88%1.2M shares
VAN ECK ASSOCIATES CORP	0.74%1.01M shares
VANGUARD FIDUCIARY TRUST CO	0.60%818.89K shares
UBS Group AG	0.60%816.31K shares
Bank of New York Mellon Corp	0.58%788.36K shares
AQR CAPITAL MANAGEMENT LLC	0.57%771.77K shares
Verition Fund Management LLC	0.48%652.28K shares
GOLDMAN SACHS GROUP INC	0.48%651.71K shares

Percentages use 136.37M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys3$246.3K disclosed value

Sells (SEC code S)3$635.3K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jan 6, 2026Form 4	Hain Robert CDirector	SellCommon Stock, par value $0.001 per share	6.8K	$18.06	$123.4K	1.0K
Jan 13, 2025Form 4	Hain Robert CDirector	SellCommon Stock, par value $0.001 per share	2.5K	$18.07	$45.2K	6.8K
Dec 31, 2024Form 4	PAPERIN STEWART JDirector	SellCommon Stock, par value $0.001 per share · indirect	24.9K	$18.78	$466.7K	363
Nov 7, 2024Form 4	Hain Robert CDirector	BuyCommon Stock, par value $0.001 per share	2.5K	$19.08	$47.7K	9.0K
Oct 3, 2024Form 4	STATON DANIEL CChairman of the Board	BuyCommon Stock, par value $0.001 per share · indirect	7.0K	$19.86	$139.7K	24.0K

Review ownership filings at SEC.gov ↗

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Armour Residential REIT, Inc. (ARR)

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