Invesco Mortgage Capital (NYSE:IVR) Issues Earnings Results

Key Points

• Invesco Mortgage Capital reported quarterly EPS of $0.50, exceeding analysts’ consensus estimate of $0.47. The REIT posted a 28.12% return on equity and a 20.50% net margin.
• The company announced a monthly dividend of $0.12 per share, implying a 19.4% annualized yield, although its payout ratio is elevated at 194.59%.
• Analyst sentiment remains mixed but centers on a “Hold” consensus, with a $8.25 average price target. Shares traded around $7.42, while institutional investors own 40.54% of the stock.

Invesco Mortgage Capital (NYSE:IVR - Get Free Report) announced its quarterly earnings results on Thursday. The real estate investment trust reported $0.50 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.47 by $0.03, Zacks reports. Invesco Mortgage Capital had a return on equity of 28.12% and a net margin of 20.50%.

Invesco Mortgage Capital Stock Up 0.1%

Invesco Mortgage Capital stock traded up $0.01 during midday trading on Thursday, reaching $7.42. The company's stock had a trading volume of 3,129,232 shares, compared to its average volume of 2,514,846. Invesco Mortgage Capital has a fifty-two week low of $7.10 and a fifty-two week high of $9.50. The company has a market cap of $688.26 million, a P/E ratio of 10.02 and a beta of 1.59. The business has a 50-day simple moving average of $7.88 and a 200-day simple moving average of $8.23.

Invesco Mortgage Capital Announces Dividend

The company also recently announced a monthly dividend, which will be paid on Friday, August 14th. Investors of record on Monday, July 27th will be paid a dividend of $0.12 per share. The ex-dividend date is Monday, July 27th. This represents a c) dividend on an annualized basis and a dividend yield of 19.4%. Invesco Mortgage Capital's payout ratio is presently 194.59%.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the stock. Weiss Ratings downgraded shares of Invesco Mortgage Capital from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, May 15th. Wall Street Zen raised shares of Invesco Mortgage Capital from a "sell" rating to a "hold" rating in a report on Saturday, May 16th. Finally, Zacks Research upgraded shares of Invesco Mortgage Capital from a "strong sell" rating to a "hold" rating in a research report on Monday. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Invesco Mortgage Capital has a consensus rating of "Hold" and a consensus price target of $8.25.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Cerity Partners LLC acquired a new stake in Invesco Mortgage Capital in the fourth quarter valued at about $98,000. BNP Paribas Financial Markets lifted its holdings in shares of Invesco Mortgage Capital by 130.7% in the 3rd quarter. BNP Paribas Financial Markets now owns 12,917 shares of the real estate investment trust's stock valued at $98,000 after buying an additional 7,318 shares during the period. PharVision Advisers LLC purchased a new stake in shares of Invesco Mortgage Capital in the third quarter valued at approximately $94,000. Brooklyn Investment Group acquired a new position in Invesco Mortgage Capital during the fourth quarter worth $93,000. Finally, Strs Ohio purchased a new position in Invesco Mortgage Capital in the first quarter worth $82,000. 40.54% of the stock is owned by hedge funds and other institutional investors.

Invesco Mortgage Capital Company Profile

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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