American Capital Agency (NASDAQ:AGNC) announced that it priced a public offering of 43,200,000 shares of common stock for total estimated gross proceeds of about $1.2 billion.
The company granted the underwriters an option for 30 days to purchase up to an additional 6,480,000 shares of common stock to cover overallotments. The offering is subject to customary closing conditions and is expected to close on June 28, 2011.
American Capital Agency has a potential upside of 7.8% based on a current price of $28.85 and an average consensus analyst price target of $31.09.
American Capital Agency is currently below its 50-day moving average (MA) of $29.56 and below its 200-day MA of $29.05.
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