Invesco Mortgage Capital (NYSE:IVR) Lowered to "Strong Sell" Rating by Zacks Research

Key Points

• Zacks Research downgraded Invesco Mortgage Capital to “strong sell” from “hold,” while other analyst opinions remain mixed. The stock’s consensus rating is “Hold,” with an average price target of $8.38.
• IVR opened at $7.42, near its 52-week low of $7.10, and trades below both its 50-day and 200-day moving averages. The company reported quarterly EPS of $0.50, matching estimates, but revenue of $30.10 million fell short of the $46.48 million consensus forecast.
• Institutional investors own approximately 40.54% of the stock, with several hedge funds and asset managers recently increasing their positions or initiating new stakes.

Invesco Mortgage Capital (NYSE:IVR - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

Several other brokerages have also commented on IVR. UBS Group set a $7.75 price objective on shares of Invesco Mortgage Capital and gave the stock a "neutral" rating in a report on Wednesday, August 19th. Wall Street Zen lowered shares of Invesco Mortgage Capital from a "hold" rating to a "sell" rating in a research note on Saturday, August 8th. Finally, Weiss Ratings upgraded shares of Invesco Mortgage Capital from a "sell (d+)" rating to a "hold (c)" rating in a research report on Tuesday, August 11th. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $8.38.

Invesco Mortgage Capital Stock Performance

IVR opened at $7.42 on Wednesday. Invesco Mortgage Capital has a 52-week low of $7.10 and a 52-week high of $9.50. The stock has a market capitalization of $798.37 million, a PE ratio of 5.01 and a beta of 1.60. The stock's 50 day moving average price is $7.69 and its 200-day moving average price is $8.00.

Invesco Mortgage Capital (NYSE:IVR - Get Free Report) last announced its earnings results on Thursday, July 30th. The real estate investment trust reported $0.50 EPS for the quarter, meeting analysts' consensus estimates of $0.50. Invesco Mortgage Capital had a return on equity of 26.48% and a net margin of 38.01%.The company had revenue of $30.10 million during the quarter, compared to the consensus estimate of $46.48 million. Research analysts forecast that Invesco Mortgage Capital will post 1.97 EPS for the current fiscal year.

Institutional Trading of Invesco Mortgage Capital

A number of hedge funds and other institutional investors have recently modified their holdings of IVR. Jones Financial Companies Lllp lifted its position in Invesco Mortgage Capital by 4,329.2% during the 1st quarter. Jones Financial Companies Lllp now owns 17,008 shares of the real estate investment trust's stock valued at $134,000 after acquiring an additional 16,624 shares during the period. Goldman Sachs Group Inc. boosted its stake in Invesco Mortgage Capital by 9.3% during the first quarter. Goldman Sachs Group Inc. now owns 368,466 shares of the real estate investment trust's stock worth $2,907,000 after acquiring an additional 31,410 shares in the last quarter. Jane Street Group LLC purchased a new stake in Invesco Mortgage Capital in the first quarter worth about $144,000. Strs Ohio bought a new position in shares of Invesco Mortgage Capital during the first quarter valued at approximately $82,000. Finally, Envestnet Asset Management Inc. lifted its holdings in shares of Invesco Mortgage Capital by 63.1% during the second quarter. Envestnet Asset Management Inc. now owns 22,097 shares of the real estate investment trust's stock valued at $173,000 after purchasing an additional 8,553 shares during the last quarter. 40.54% of the stock is owned by hedge funds and other institutional investors.

About Invesco Mortgage Capital

Invesco Mortgage Capital Inc NYSE: IVR is a real estate investment trust that specializes in investing in U.S. residential mortgage-backed securities. The company's portfolio is weighted toward agency-guaranteed RMBS issued or guaranteed by U.S. government-sponsored enterprises such as Fannie Mae, Freddie Mac and Ginnie Mae. By focusing on collateral backed by federal agencies, Invesco Mortgage Capital seeks to generate attractive returns while managing credit risk through securities that carry explicit or implicit government guarantees.

To enhance its portfolio yield, the company employs leverage through repurchase agreements, warehouse facilities and debt financing.

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