Invesco Mortgage Capital (NYSE:IVR) Reaches New 52-Week Low - Here's What Happened

Key Points

• Invesco Mortgage Capital shares fell to a new 52-week low of $6.13, below the prior close of $6.26, with the stock trading under both its 50-day and 200-day moving averages.
• Analyst sentiment weakened, with several firms downgrading the stock to sell or strong sell; the consensus rating remains “Hold” with an $8.38 price target.
• The company declared a monthly dividend of $0.12 per share, equivalent to $1.44 annually and a 23.5% yield, though its payout ratio is high at 97.3%.

Invesco Mortgage Capital Inc (NYSE:IVR - Get Free Report) shares hit a new 52-week low during mid-day trading on Wednesday. The company traded as low as $6.13 and last traded at $6.1250, with a volume of 1489371 shares changing hands. The stock had previously closed at $6.26.

Analysts Set New Price Targets

Several equities analysts recently weighed in on the stock. Weiss Ratings cut shares of Invesco Mortgage Capital from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, September 22nd. UBS Group set a $7.75 price objective on Invesco Mortgage Capital and gave the company a "neutral" rating in a research report on Wednesday, August 19th. Wall Street Zen lowered shares of Invesco Mortgage Capital from a "hold" rating to a "sell" rating in a report on Saturday. Finally, Zacks Research downgraded shares of Invesco Mortgage Capital from a "hold" rating to a "strong sell" rating in a research note on Wednesday, August 26th. One investment analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $8.38.

Invesco Mortgage Capital Stock Down 2.3%

The company has a 50 day simple moving average of $7.16 and a two-hundred day simple moving average of $7.72. The company has a market capitalization of $658.22 million, a P/E ratio of 4.13 and a beta of 1.62.

Invesco Mortgage Capital (NYSE:IVR - Get Free Report) last released its earnings results on Thursday, July 30th. The real estate investment trust reported $0.50 earnings per share for the quarter, hitting analysts' consensus estimates of $0.50. Invesco Mortgage Capital had a net margin of 38.01% and a return on equity of 26.48%. The firm had revenue of $30.10 million for the quarter, compared to analyst estimates of $46.48 million. As a group, research analysts expect that Invesco Mortgage Capital Inc will post 1.97 EPS for the current fiscal year.

Invesco Mortgage Capital Dividend Announcement

The firm also recently declared a monthly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Monday, September 28th will be issued a dividend of $0.12 per share. This represents a $1.44 dividend on an annualized basis and a yield of 23.5%. The ex-dividend date of this dividend is Monday, September 28th. Invesco Mortgage Capital's payout ratio is 97.30%.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Envestnet Asset Management Inc. lifted its position in Invesco Mortgage Capital by 358.5% in the second quarter. Envestnet Asset Management Inc. now owns 88,421 shares of the real estate investment trust's stock valued at $699,000 after acquiring an additional 69,137 shares during the last quarter. State Street Corp lifted its holdings in shares of Invesco Mortgage Capital by 31.6% in the 2nd quarter. State Street Corp now owns 1,849,062 shares of the real estate investment trust's stock valued at $14,803,000 after purchasing an additional 443,882 shares during the last quarter. The Manufacturers Life Insurance Company boosted its position in shares of Invesco Mortgage Capital by 11.1% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 21,223 shares of the real estate investment trust's stock valued at $168,000 after purchasing an additional 2,122 shares during the period. WINTON GROUP Ltd acquired a new stake in shares of Invesco Mortgage Capital in the 2nd quarter valued at about $727,000. Finally, Integrated Wealth Concepts LLC grew its stake in Invesco Mortgage Capital by 20.3% during the 2nd quarter. Integrated Wealth Concepts LLC now owns 13,200 shares of the real estate investment trust's stock worth $104,000 after buying an additional 2,226 shares during the last quarter. Hedge funds and other institutional investors own 40.54% of the company's stock.

Invesco Mortgage Capital Company Profile

Invesco Mortgage Capital Inc NYSE: IVR is a real estate investment trust that invests primarily in mortgage-related securities. Its portfolio has historically focused on residential mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises and government agencies, including securities backed by Fannie Mae, Freddie Mac and Ginnie Mae.

The company may also invest in other mortgage assets, including non-agency residential mortgage-backed securities, commercial mortgage-backed securities and mortgage loans.

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