DMO Stock Summary and Trading Ideas (Western Asset Mtg Defined Opportunity | NYSE:DMO)

The Fund’s primary investment objective is to provide current income. As a secondary investment objective, the Fund will seek capital appreciation. The Fund seeks to achieve its investment objectives by investing primarily in a diverse portfolio of mortgage-backed securities (“MBS”), consisting primarily of non-agency residential mortgage-backed securities (“RMBS”) and commercial mortgage-backed securities (“CMBS”). The Fund also may invest, to a lesser degree, in other permitted investments, including cash and cash equivalents; Treasury securities; non-mortgage related asset-backed securities (“ABS”) backed by various asset classes including, but not limited to, small balance commercial mortgages, aircrafts, automobiles, credit cards, equipment, manufactured housing, franchises, recreational vehicles and student loans; and investment grade and below investment grade fixed income securities including bonds, debentures, notes, commercial paper and other similar types of debt instruments including hybrid securities. The Fund also may invest in any newly developed mortgage related derivatives that may hereafter become available for mortgage investing. The Fund may invest in derivative instruments, such as options contracts, futures contracts, options on futures contracts, indexed securities, credit linked notes, credit default swaps and other swap agreements for investment, hedging and risk management purposes with certain limitations. Notwithstanding the foregoing, the Fund may invest without limitation in Treasury futures, Eurodollar futures, interest rate swaps, swaptions or similar instruments and combinations thereof. The Fund is not limited in its ability to invest in below investment grade or illiquid securities. Below investment grade securities are securities rated below the Baa or BBB categories at the time of purchase by one or more nationally recognized statistical rating organizations or unrated securities that we determine to be of comparable quality. At Western Asset Management Company (“Western Asset”), the Fund’s subadviser,will utilize a fixed-income team approach, with decisions derived from interaction among various investment management sector specialists. The sector teams are comprised of Western Asset’s senior portfolio management personnel, research analysts and an in-house economist. Under this team approach, management of client fixed-income portfolios will reflect a consensus of interdisciplinary views within the Western Asset organization.

Western Asset Mtg Defined Opportunity trades on the NYSE stock market under the symbol DMO.

As of April 29, 2024, DMO stock price climbed to $11.28 with 80,050 million shares trading.

DMO has a beta of 0.53, meaning it tends to be less sensitive to market movements. DMO has a correlation of 0.20 to the broad based SPY ETF.

DMO has a market cap of $128.41 million. This is considered a Micro Cap stock.

In the last 3 years, DMO stock traded as high as $16.29 and as low as $10.00.

DMO has underperformed the market in the last year with a return of +20.6%, while the SPY ETF gained +27.8%. In the last 3 month period, DMO fell short of the market, returning +4.0%, while SPY returned +5.0%. However, in the most recent 2 weeks DMO has outperformed the stock market by returning +0.4%, while SPY returned -0.2%.

DMO support price is $11.09 and resistance is $11.39 (based on 1 day standard deviation move). This means that using the most recent 20 day stock volatility and applying a one standard deviation move around the stock's closing price, stastically there is a 67% probability that DMO stock will trade within this expected range on the day.