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

Key Points

• IVR crossed above its 200-day moving average, trading as high as $8.24 and last at $8.1550 on about 1.73 million shares, with the 200‑day MA at $8.15.
• Analyst consensus is a Hold (one Buy, three Holds) with a $8.25 average price target; recent notes include Compass Point initiating at Buy ($9) and Zacks downgrading to Hold.
• The company declared a monthly $0.12 dividend (ex‑dividend Mar 24, payable Apr 14), implying a 17.7% yield but a payout ratio of 112.5%, raising questions about sustainability.

Invesco Mortgage Capital Inc (NYSE:IVR - Get Free Report)'s stock price crossed above its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of $8.15 and traded as high as $8.24. Invesco Mortgage Capital shares last traded at $8.1550, with a volume of 1,734,258 shares trading hands.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on IVR. Zacks Research lowered Invesco Mortgage Capital from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, January 27th. Compass Point began coverage on Invesco Mortgage Capital in a research report on Monday, December 15th. They set a "buy" rating and a $9.00 price target on the stock. Wall Street Zen raised Invesco Mortgage Capital from a "sell" rating to a "hold" rating in a research report on Saturday, March 28th. Finally, Weiss Ratings raised Invesco Mortgage Capital from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, February 2nd. One research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $8.25.

Invesco Mortgage Capital Price Performance

The business has a 50 day simple moving average of $8.40 and a 200 day simple moving average of $8.15. The stock has a market cap of $709.05 million, a PE ratio of 6.37 and a beta of 1.72.

Invesco Mortgage Capital (NYSE:IVR - Get Free Report) last issued its earnings results on Thursday, January 29th. The real estate investment trust reported $0.56 EPS for the quarter, missing analysts' consensus estimates of $0.58 by ($0.02). Invesco Mortgage Capital had a net margin of 34.30% and a return on equity of 28.85%. The firm had revenue of $56.06 million during the quarter, compared to analysts' expectations of $47.99 million. As a group, sell-side analysts forecast that Invesco Mortgage Capital Inc will post 2.49 earnings per share for the current fiscal year.

Invesco Mortgage Capital Announces Dividend

The company also recently announced a monthly dividend, which will be paid on Tuesday, April 14th. Shareholders of record on Tuesday, March 24th will be paid a $0.12 dividend. The ex-dividend date is Tuesday, March 24th. This represents a c) dividend on an annualized basis and a yield of 17.7%. Invesco Mortgage Capital's payout ratio is 112.50%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of IVR. Northwestern Mutual Wealth Management Co. grew its stake in Invesco Mortgage Capital by 3,282.2% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,044 shares of the real estate investment trust's stock valued at $26,000 after purchasing an additional 2,954 shares in the last quarter. FNY Investment Advisers LLC bought a new stake in shares of Invesco Mortgage Capital during the 4th quarter worth about $28,000. Kestra Advisory Services LLC bought a new stake in shares of Invesco Mortgage Capital during the 4th quarter worth about $33,000. Comerica Bank boosted its stake in shares of Invesco Mortgage Capital by 1,722.1% during the 3rd quarter. Comerica Bank now owns 5,120 shares of the real estate investment trust's stock worth $39,000 after acquiring an additional 4,839 shares in the last quarter. Finally, Caption Management LLC bought a new stake in shares of Invesco Mortgage Capital during the 4th quarter worth about $43,000. Hedge funds and other institutional investors own 40.54% of the company's stock.

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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