ARMOUR Residential REIT, Inc.
- Open
- 16.67
- Day high
- 16.69
- Day low
- 16.37
- Prev close
- 16.61
- Volume
- 3.5M
- Mkt cap
- $1.5B
- P/E (TTM)
- 8.5
- EPS (TTM)
- $1.93
- P/B
- 0.7
- P/S
- 1.6
- Yield
- 17.56%
- Per share
- $2.88
ARMOUR Residential REIT, Inc. (ARR) is a Real Estate company listed on NYSE. The stock is up 1% over the past year.
ARMOUR Residential REIT, Inc. (ARR) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ARR earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 23, 2026 | $0.73 | $0.76 | +4.1% | $109M | -27.0% |
| Feb 18, 2026 | $0.74 | $0.71 | -4.1% | $349M | +375.3% |
| Oct 22, 2025 | $0.75 | $0.72 | -4.0% | $161M | +158.0% |
| Jul 23, 2025 | $0.81 | $0.77 | -4.9% | $195M | +207.3% |
| Apr 23, 2025 | $0.93 | $0.86 | -7.5% | $177M | +211.1% |
| Feb 12, 2025 | $1.01 | $0.78 | -22.8% | $-45M | -193.3% |
| Oct 23, 2024 | $0.99 | $1.00 | +1.0% | $66M | +78.4% |
| Jul 24, 2024 | $0.91 | $1.08 | +18.7% | $36M | -32.3% |
| Apr 25, 2024 | $0.60 | $0.82 | +36.7% | $15M | -77.7% |
| Mar 15, 2024 | $0.90 | $1.07 | +18.9% | $251M | +659.4% |
| Oct 25, 2023 | $1.15 | $1.08 | -6.1% | $-178M | -2644.0% |
| Jul 26, 2023 | $1.30 | $1.15 | -11.5% | $45M | +70.8% |
ARR insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 2, 2026 | Downey Carolyndirector | Grant | 945 | $17.45 |
| Jul 2, 2026 | PAPERIN STEWART Jdirector | Grant | 945 | $17.45 |
| Jun 18, 2026 | Harper Gordonofficer: CFO | Grant | 75,000 | — |
| Jun 18, 2026 | ULM SCOTTdirector, officer: CEO | Grant | 150,000 | — |
| Jun 18, 2026 | Macauley Desmondofficer: Co-Chief Investment Officer | Grant | 50,000 | — |
| Jun 18, 2026 | Losyev Sergeyofficer: Co-Chief Investment Officer | Grant | 50,000 | — |
| May 26, 2026 | Downey Carolyndirector | Option | 1,900 | — |
| May 26, 2026 | Losyev Sergeyofficer: Co-Chief Investment Officer | Tax | 281 | $16.47 |
| May 26, 2026 | BELL MARC Hdirector | Option | 1,900 | — |
| May 26, 2026 | Macauley Desmondofficer: Co-Chief Investment Officer | Tax | 389 | $16.47 |
| May 26, 2026 | BELL MARC Hdirector | Option | 480 | — |
| May 26, 2026 | HOLLIHAN JOHN P IIIdirector | Option | 1,900 | — |
| May 26, 2026 | HOLLIHAN JOHN P IIIdirector | Tax | 760 | $16.47 |
| May 26, 2026 | PAPERIN STEWART Jdirector | Option | 1,900 | — |
| May 26, 2026 | Losyev Sergeyofficer: Co-Chief Investment Officer | Option | 1,500 | — |
Source: ARR SEC Form 4 filings, latest Jul 2, 2026. For informational purposes only — not investment advice.
See the full ARR insider & 13F page →ARMOUR Residential REIT, Inc. company profile
Overview
ARMOUR Residential REIT, Inc. (NYSE:ARR) is a specialized real estate investment trust that focuses exclusively on investing in residential mortgage-backed securities. Founded in 2008 and headquartered in Vero Beach, Florida, the company went public in December 2007. ARMOUR operates as a mortgage REIT, which means it generates income by investing in mortgage-related securities rather than owning physical real estate properties. The company has elected to be taxed as a REIT under the Internal Revenue Code, allowing it to avoid corporate income taxes on distributed earnings while requiring it to distribute at least 90% of its taxable income to shareholders as dividends.
Business
ARMOUR Residential REIT operates in the mortgage REIT sector, where it invests primarily in residential mortgage-backed securities (MBS). These are investment instruments created when banks and other lenders bundle together individual home mortgages and sell them as securities to investors. The underlying mortgages are typically guaranteed by government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac, or by government agencies like Ginnie Mae, which significantly reduces credit risk. The company's investment portfolio consists almost entirely of Agency MBS - securities that are either issued or guaranteed by GSEs or government agencies. These securities are backed by fixed-rate, hybrid adjustable-rate, and adjustable-rate home loans. ARMOUR diversifies across different mortgage coupon rates, typically ranging from 2.5% to 6.5%, with strategic overweighting in production coupons (currently favoring 5% and 5.5% coupons). The company also invests in U.S. Treasury securities and money market instruments for liquidity management. ARMOUR operates as a single business segment focused on Agency MBS investments, representing essentially 100% of its investment portfolio. The company maintains this concentrated approach to benefit from the liquidity and government backing of Agency securities while avoiding the credit risk associated with non-agency mortgage securities.
Revenue model
ARMOUR generates revenue primarily through net interest income - the difference between the interest earned on its mortgage-backed securities portfolio and the cost of financing those investments. The company uses leverage, typically operating at 7-8 times equity, by borrowing money through repurchase agreements and other short-term financing to purchase larger amounts of MBS than its equity capital alone would allow. The company's customers are effectively the capital markets participants who provide financing, while ARMOUR's income depends on the spread between long-term mortgage rates (what it earns) and short-term funding costs (what it pays). Monthly dividends are paid to shareholders from this net interest income, with the company maintaining a $0.24 per share monthly dividend. Several factors significantly impact ARMOUR's profitability margins. Interest rate movements create the most substantial risk - when short-term rates rise faster than long-term mortgage rates, the company's net interest spread compresses. Prepayment risk occurs when homeowners refinance their mortgages early, forcing ARMOUR to reinvest at potentially lower yields. Market volatility affects the value of MBS holdings and can impact the company's ability to maintain leverage. Federal Reserve policy directly influences both funding costs and MBS valuations, while mortgage origination volumes and housing market conditions affect the supply and demand dynamics for mortgage securities. The company uses interest rate hedging strategies, including Treasury shorts and interest rate swaps, to manage duration risk and protect against adverse rate movements.
Competitive moat
ARMOUR Residential REIT operates in a highly competitive mortgage REIT sector with limited sustainable competitive advantages. The company's primary defensive characteristics include its experienced management team with deep expertise in mortgage markets and interest rate risk management, and its focus on liquid Agency MBS which provides flexibility during market stress. However, the company's moat is relatively narrow. The mortgage REIT business model is easily replicable, with low barriers to entry for well-capitalized competitors. ARMOUR faces competition from numerous other mortgage REITs, hedge funds, banks, and institutional investors who can access the same Agency MBS markets. The company's investment strategy of focusing on liquid, government-backed securities, while reducing credit risk, also limits differentiation opportunities. The primary competitive threats come from larger, better-capitalized mortgage REITs that can operate with lower funding costs and weather market volatility more effectively. Banks returning to MBS investing as regulatory capital requirements stabilize could reduce spreads and investment opportunities. Additionally, potential GSE reform discussions pose a longer-term structural risk to the Agency MBS market that forms the foundation of ARMOUR's business model. The company's relatively small size and higher cost of capital compared to larger peers represents an ongoing competitive disadvantage in a spread-sensitive business.
Risks & safety
ARMOUR presents moderate financial risk with several key considerations for margin of safety: • Liquidity position: Strong with over $750 million in liquidity and 95% invested in liquid Agency MBS, providing flexibility during market stress • Leverage: Currently at 8.1x implied leverage, within typical mortgage REIT range but creates amplified sensitivity to market movements • Cash generation: Positive operating cash flow of $101.5 million in Q1 2025, supporting dividend coverage • Book value volatility: Significant fluctuation from $20.76 per share in Q3 2024 to $16.56 in April 2025, reflecting interest rate sensitivity • Valuation metrics: Trading at 0.75x book value (P/B ratio), suggesting market discount to net asset value • Debt structure: Primarily short-term repurchase agreements creating refinancing risk • Interest rate risk: Portfolio duration of 0.5 years provides some protection but funding costs remain sensitive to Fed policy • Dividend sustainability: Current $0.24 monthly dividend appears covered by distributable earnings of $0.86 per share in Q1 2025
Recent development
Over the past few years, ARMOUR has implemented several strategic adjustments to navigate challenging market conditions. The company has maintained its focus on Agency MBS while fine-tuning its coupon allocation strategy, currently overweighting production coupons in the 5% to 5.5% range that offer attractive risk-adjusted returns. Capital management has been a key focus, with ARMOUR raising over $371 million through stock issuances in Q1 2025 alone, while also opportunistically repurchasing shares when trading below book value. The company has utilized its at-the-market (ATM) equity program strategically to raise capital when market conditions are favorable. Risk management enhancements include maintaining shorter portfolio duration (currently 0.5 years) and strong liquidity positions to weather market volatility. The company has also refined its hedging strategies, using a combination of Treasury positions, interest rate swaps, and SOFR-based instruments to manage interest rate risk. Operational efficiency improvements include management fee waivers totaling $1.65 million and a focus on maintaining competitive expense ratios. The company has also positioned itself for potential opportunities arising from GSE reform discussions, maintaining flexibility to adapt to potential structural changes in the mortgage market while continuing to generate attractive risk-adjusted returns in the current environment.
ARR company profile · for informational purposes only — not investment advice.
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