Invesco Mortgage Capital (NYSE:IVR) Stock Passes Above Two Hundred Day Moving Average - Here's What Happened

Key Points

• Shares of Invesco Mortgage Capital (IVR) climbed above its 200‑day moving average of $8.21—trading as high as $8.36 with about 2.46 million shares changing hands; the stock's 50‑day average is $8.25 and market cap is roughly $716 million.
• The company declared a monthly dividend of $0.12 (ex‑dividend Apr 27, paid May 14), implying a 17.5% yield, but the dividend payout ratio is 112.5%, which may signal an unsustainable distribution level.
• Analysts have an average rating of “Hold” with a $8.25 target after recent downgrades and upgrades; IVR reported quarterly EPS of $0.56 (missing estimates by $0.02) while beating revenue expectations.

Shares of Invesco Mortgage Capital Inc (NYSE:IVR - Get Free Report) passed above its two hundred day moving average during trading on Thursday . The stock has a two hundred day moving average of $8.21 and traded as high as $8.36. Invesco Mortgage Capital shares last traded at $8.2350, with a volume of 2,460,671 shares trading hands.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on IVR shares. Wall Street Zen downgraded Invesco Mortgage Capital from a "hold" rating to a "sell" rating in a research report on Saturday, April 11th. Weiss Ratings raised Invesco Mortgage Capital from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, February 2nd. Finally, Zacks Research cut Invesco Mortgage Capital from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, January 27th. One research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, Invesco Mortgage Capital has an average rating of "Hold" and an average target price of $8.25.

Invesco Mortgage Capital Price Performance

The firm's 50-day moving average is $8.25 and its 200 day moving average is $8.21. The stock has a market cap of $716.03 million, a price-to-earnings ratio of 6.43 and a beta of 1.72.

Invesco Mortgage Capital (NYSE:IVR - Get Free Report) last announced its quarterly earnings results on Thursday, January 29th. The real estate investment trust reported $0.56 earnings per share for the quarter, missing analysts' consensus estimates of $0.58 by ($0.02). The company had revenue of $56.06 million during the quarter, compared to analyst estimates of $47.99 million. Invesco Mortgage Capital had a net margin of 34.30% and a return on equity of 28.85%. On average, sell-side analysts forecast that Invesco Mortgage Capital Inc will post 2.25 EPS for the current year.

Invesco Mortgage Capital Announces Dividend

The company also recently declared a monthly dividend, which will be paid on Thursday, May 14th. Shareholders of record on Monday, April 27th will be paid a dividend of $0.12 per share. The ex-dividend date is Monday, April 27th. This represents a c) annualized dividend and a yield of 17.5%. Invesco Mortgage Capital's dividend payout ratio is currently 112.50%.

Hedge Funds Weigh In On Invesco Mortgage Capital

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

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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