Invesco Mortgage Capital Inc (NYSE:IVR) Sees Large Decrease in Short Interest

Key Points

• Short interest fell 14.5% in April to 7,101,896 shares (about 8.2% of the float), with a days-to-cover ratio of 4.3 based on average daily volume.
• The company declared a monthly $0.12 dividend (ex-dividend Apr 27), implying a 17.3% yield and a payout ratio of 112.5%.
• Q1 EPS of $0.55 matched estimates, shares traded up about 2.4% to $8.33, and analysts have an average Hold rating with a $8.25 price target.

Invesco Mortgage Capital Inc (NYSE:IVR - Get Free Report) was the recipient of a significant decline in short interest in the month of April. As of April 15th, there was short interest totaling 7,101,896 shares, a decline of 14.5% from the March 31st total of 8,306,430 shares. Approximately 8.2% of the shares of the company are short sold. Based on an average daily trading volume, of 1,634,180 shares, the days-to-cover ratio is currently 4.3 days.

Wall Street Analyst Weigh In

Several brokerages have issued reports on IVR. Zacks Research lowered Invesco Mortgage Capital from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, January 27th. Wall Street Zen lowered Invesco Mortgage Capital from a "hold" rating to a "sell" rating in a research note on Saturday, April 11th. Finally, Weiss Ratings upgraded Invesco Mortgage Capital from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, February 2nd. One research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $8.25.

Invesco Mortgage Capital Trading Up 2.4%

Shares of NYSE IVR traded up $0.20 during mid-day trading on Friday, hitting $8.33. The company had a trading volume of 3,296,331 shares, compared to its average volume of 2,433,035. The company has a market capitalization of $723.83 million, a price-to-earnings ratio of 6.50 and a beta of 1.72. Invesco Mortgage Capital has a 1 year low of $7.10 and a 1 year high of $9.50. The stock's 50-day moving average price is $8.20 and its 200-day moving average price is $8.24.

Invesco Mortgage Capital (NYSE:IVR - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The real estate investment trust reported $0.55 earnings per share for the quarter, meeting the consensus estimate of $0.55. The company had revenue of ($15.01) million during the quarter, compared to analysts' expectations of $39.80 million. Invesco Mortgage Capital had a return on equity of 28.85% and a net margin of 34.30%. As a group, equities research analysts forecast that Invesco Mortgage Capital will post 2.25 earnings per share for the current year.

Invesco Mortgage Capital Dividend Announcement

The business also recently declared a monthly dividend, which will be paid on Thursday, May 14th. Stockholders of record on Monday, April 27th will be given a $0.12 dividend. The ex-dividend date is Monday, April 27th. This represents a c) annualized dividend and a dividend yield of 17.3%. Invesco Mortgage Capital's payout ratio is 112.50%.

Hedge Funds Weigh In On Invesco Mortgage Capital

Hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. grew its position in Invesco Mortgage Capital by 1.4% during the third quarter. Vanguard Group Inc. now owns 3,727,534 shares of the real estate investment trust's stock worth $28,180,000 after buying an additional 50,548 shares in the last quarter. Invesco Ltd. grew its position in Invesco Mortgage Capital by 8.5% during the fourth quarter. Invesco Ltd. now owns 2,555,890 shares of the real estate investment trust's stock worth $21,495,000 after buying an additional 199,259 shares in the last quarter. Geode Capital Management LLC grew its position in Invesco Mortgage Capital by 6.3% during the fourth quarter. Geode Capital Management LLC now owns 1,708,181 shares of the real estate investment trust's stock worth $14,369,000 after buying an additional 101,303 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in Invesco Mortgage Capital by 7.9% during the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,544,194 shares of the real estate investment trust's stock worth $11,674,000 after buying an additional 113,608 shares in the last quarter. Finally, Millennium Management LLC grew its position in Invesco Mortgage Capital by 1,607.0% during the third quarter. Millennium Management LLC now owns 1,523,395 shares of the real estate investment trust's stock worth $11,517,000 after buying an additional 1,434,149 shares in the last quarter. 40.54% of the stock is currently 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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