Mortgage investment REIT Annaly Capital Management, Inc. (NLY) on Tuesday caught a big downgrade from analysts at Wells Fargo.

The firm said it cut its rating on NLY from “Outperform” to “Market Perform” with a $16-17 valuation range. That range implies essentially zero upside to the stock’s Monday closing price of $16.60.

Wells Fargo noted the company’s longer duration portfolio includes big potential risks, given rising longer term rates.

Annaly Capital shares fell 13 cents, or -0.8%, in premarket trading Tuesday.

The Bottom Line
Shares of Annaly Capital (NLY) have a 14.70% dividend yield, based on last night’s closing stock price of $16.60. The stock has technical support in the $15.50 price area. If the shares can firm up, we see overhead resistance around the $17.50 price level.

Annaly Capital Management, Inc. (NLY) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.