Why Annaly’s latest earnings and activism push matter for shareholders

Annaly Capital Management (NLY) has drawn fresh attention after reporting first quarter 2026 net income of US$282.65 million and earnings per share of US$0.33, alongside a shareholder proposal on written consents and a board backed campaign against it.

The latest governance debate and Q1 earnings come on the back of an 8.0% 1 month share price return and a 35.2% 1 year total shareholder return. Year to date share price performance has been roughly flat, which suggests longer term income focused investors have seen stronger gains than short term traders.

If this kind of income focused story has your attention, it can be useful to see how other yield oriented names stack up, including resilient utilities and infrastructure owners, by scanning 18 top founder-led companies

With Annaly trading at US$22.82, at a discount to both analyst targets and some intrinsic estimates after a 35.2% 1-year total return, is this a fresh buying opportunity or is the market already pricing in future growth?

Most Popular Narrative: 4.9% Undervalued

With Annaly shares at $22.82 and the most followed fair value estimate at $24.00 using a 9.03% discount rate, the current setup hinges on what happens to earnings, margins and capital allocation over the next few years.

The residential credit portfolio is expected to see growth through increases in securitization despite tighter credit spreads and greater issuance activities, suggesting an impact on revenue and potentially net margins as discipline remains a priority.

Want to see what sits behind that confidence in securitization and margins? The narrative leans on earnings expansion, richer profitability and a higher future earnings multiple. It is worth examining which assumptions really move that $24.00 fair value.

Result: Fair Value of $24.00 (UNDERVALUED)

However, rising interest rates hurting mortgage spreads and higher hedging costs eating into returns could quickly challenge the current fair value optimism.

Next Steps

With both risks and rewards in play, does the current story around Annaly match how you see the stock today? Act while the details are fresh in mind and weigh up the 4 key rewards and 3 important warning signs

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.