Invesco Mortgage Capital (NYSE:IVR) Hits New 1-Year Low - Time to Sell?

Key Points

• Invesco Mortgage Capital fell to a new 52-week low of $5.19, below its 50-day and 200-day moving averages of $6.24 and $7.66, respectively.
• Analyst sentiment remains cautious: the consensus rating is “Hold” with an average price target of $8.38, while recent reports included both downgrades and upgrades.
• The REIT slightly exceeded quarterly EPS expectations at $0.47 but reported revenue well below forecasts; it also declared a $0.12 monthly dividend, implying a high 27.5% yield and a negative payout ratio.

Invesco Mortgage Capital Inc (NYSE:IVR - Get Free Report) reached a new 52-week low during trading on Tuesday. The company traded as low as $5.19 and last traded at $5.2450, with a volume of 630,668 shares changing hands. The stock had previously closed at $5.34.

Analyst Upgrades and Downgrades

IVR has been the subject of several research reports. UBS Group set a $7.75 price target on shares of Invesco Mortgage Capital and gave the stock a "neutral" rating in a research report on Wednesday, August 19th. Wall Street Zen downgraded Invesco Mortgage Capital from a "hold" rating to a "sell" rating in a report on Saturday, September 26th. Zacks Research upgraded shares of Invesco Mortgage Capital from a "strong sell" rating to a "hold" rating in a research note on Thursday, October 8th. Finally, Weiss Ratings downgraded shares of Invesco Mortgage Capital from a "hold (c)" rating to a "hold (c-)" rating in a research report on Tuesday, September 22nd. One investment analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, Invesco Mortgage Capital has a consensus rating of "Hold" and an average target price of $8.38.

Invesco Mortgage Capital Stock Performance

The firm has a market cap of $564.57 million, a price-to-earnings ratio of -29.08 and a beta of 1.73. The business's 50 day moving average price is $6.24 and its 200 day moving average price is $7.66.

Invesco Mortgage Capital (NYSE:IVR - Get Free Report) last posted its earnings results on Thursday, October 29th. The real estate investment trust reported $0.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.46 by $0.01. The firm had revenue of $33.93 million during the quarter, compared to analysts' expectations of $57.52 million. Invesco Mortgage Capital had a net margin of 38.01% and a return on equity of 26.48%. Sell-side analysts anticipate that Invesco Mortgage Capital Inc will post 1.97 earnings per share for the current fiscal year.

Invesco Mortgage Capital Dividend Announcement

The firm also recently declared a monthly dividend, which will be paid on Monday, November 16th. Investors of record on Monday, October 26th will be paid a $0.12 dividend. This represents a $1.44 annualized dividend and a dividend yield of 27.5%. The ex-dividend date is Monday, October 26th. Invesco Mortgage Capital's payout ratio is currently -800.00%.

Hedge Funds Weigh In On Invesco Mortgage Capital

A number of large investors have recently bought and sold shares of the business. BlackRock Inc. acquired a new position in Invesco Mortgage Capital in the 2nd quarter valued at $69,562,000. State Street Corp boosted its stake in Invesco Mortgage Capital by 31.6% during the 2nd quarter. State Street Corp now owns 1,849,062 shares of the real estate investment trust's stock worth $14,803,000 after purchasing an additional 443,882 shares during the last quarter. Van ECK Associates Corp boosted its stake in Invesco Mortgage Capital by 10.6% during the 2nd quarter. Van ECK Associates Corp now owns 1,073,203 shares of the real estate investment trust's stock worth $8,478,000 after purchasing an additional 102,772 shares during the last quarter. Renaissance Technologies LLC boosted its stake in Invesco Mortgage Capital by 42.4% during the 1st quarter. Renaissance Technologies LLC now owns 677,100 shares of the real estate investment trust's stock worth $5,471,000 after purchasing an additional 201,500 shares during the last quarter. Finally, Bank of America Corp DE grew its holdings in shares of Invesco Mortgage Capital by 190.1% during the first quarter. Bank of America Corp DE now owns 410,787 shares of the real estate investment trust's stock worth $3,319,000 after buying an additional 269,195 shares in the last quarter. Institutional investors and hedge funds 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 invests primarily in mortgage-related assets. The company focuses on residential and commercial mortgage-backed securities, including securities issued or guaranteed by U.S. government-sponsored enterprises and agencies, as well as non-agency mortgage-backed securities and other mortgage-related investments.

Invesco Mortgage Capital seeks to generate income from its investment portfolio through interest payments and other returns associated with mortgage assets.

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