ARMOUR Residential REIT, Inc. (NYSE: ARR) Navigates Q3 Losses Amidst Rising Rates, Analyst Sets Price Target

• ARMOUR Residential REIT, Inc. (NYSE: ARR) reported a $327 million Q3 2026 net loss, or $2.26 per share, with book value falling 17% to $14.55 per share due to higher interest rates.
• Despite the net loss, the company generated $83.7 million in net interest income and $102.3 million in distributable earnings, or $0.71 per share.
• B. Riley Financial analyst Matt Howlett set a $14.50 price target for ARMOUR Residential, slightly above its $12.79 stock price and $14.55 quarter-end book value.

ARMOUR Residential REIT, Inc. (NYSE: ARR) is a real estate investment trust that invests mainly in agency mortgage-backed securities, which are pools of home loans. On October 22, 2026, B. Riley Financial analyst Matt Howlett sets a $14.50 price target for ARMOUR Residential. That is about 13.4% above the stock's $12.79 price at the time.

The target comes as higher interest rates and wider mortgage spreads put pressure on ARMOUR's investments. As highlighted by MarketBeat, the company reports a third-quarter 2026 loss of $327 million, or $2.26 per share. Its book value—the value of its assets minus liabilities—falls 17% from June 30 to $14.55 per share at quarter-end.

Despite that decline, ARMOUR earns income from the interest on its investments. As highlighted by GlobeNewswire, net interest income is $83.7 million, while distributable earnings are $102.3 million, or $0.71 per share. Distributable earnings are a non-GAAP measure that differs from the reported net loss.

As highlighted by Zacks, adjusted earnings of $0.71 per share fall short of the $0.73 estimate. Revenue rises to $83.74 million from $38.52 million a year earlier and beats the estimate by 3.64%. These results show stronger interest income alongside losses tied to the value of ARMOUR's investments.

ARMOUR's total economic return for the quarter is negative 12.9%, a measure that includes changes in book value and dividends. As highlighted by GlobeNewswire, the company declares monthly dividends of $0.24 per share, totaling $0.72 for the quarter. Its $14.55 quarter-end book value sits just above Howlett's $14.50 price target.