Invesco Mortgage Capital (NYSE:IVR) Sets New 1-Year Low - Here's Why

Key Points

• Invesco Mortgage Capital shares fell to a new 52-week low of $5.52, below its prior close of $5.64 and well under its 50-day and 200-day moving averages.
• Analyst sentiment remains cautious: the stock has an overall “Hold” consensus, with one Buy and three Hold ratings, and an average price target of $8.38.
• The REIT reported earnings in line with estimates at $0.50 per share but generated lower-than-expected revenue of $30.1 million. It declared a monthly $0.12 dividend, representing a 26.1% annualized yield and a 97.3% payout ratio.

Invesco Mortgage Capital Inc (NYSE:IVR - Get Free Report) shares hit a new 52-week low during trading on Tuesday. The stock traded as low as $5.52 and last traded at $5.5150, with a volume of 1,698,620 shares. The stock had previously closed at $5.64.

Analysts Set New Price Targets

A number of research analysts have weighed in on the company. Weiss Ratings downgraded Invesco Mortgage Capital from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday, September 22nd. UBS Group set a $7.75 target price on 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 research note on Saturday, September 26th. Finally, Zacks Research raised shares of Invesco Mortgage Capital from a "strong sell" rating to a "hold" rating in a research report on Thursday, October 8th. One analyst has rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $8.38.

Invesco Mortgage Capital Price Performance

The firm has a market capitalization of $593.63 million, a P/E ratio of 3.73 and a beta of 1.69. The company's 50-day simple moving average is $6.84 and its two-hundred day simple moving average is $7.58.

Invesco Mortgage Capital (NYSE:IVR - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The real estate investment trust reported $0.50 earnings per share for the quarter, hitting the consensus estimate of $0.50. Invesco Mortgage Capital had a net margin of 38.01% and a return on equity of 26.48%. The business had revenue of $30.10 million for the quarter, compared to analysts' expectations of $46.48 million. Analysts predict that Invesco Mortgage Capital Inc will post 1.97 earnings per share for the current year.

Invesco Mortgage Capital Dividend Announcement

The company also recently declared a monthly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Monday, September 28th will be given a $0.12 dividend. This represents a $1.44 dividend on an annualized basis and a dividend yield of 26.1%. The ex-dividend date is Monday, September 28th. Invesco Mortgage Capital's dividend payout ratio is presently 97.30%.

Institutional Investors Weigh In On Invesco Mortgage Capital

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Bank of New York Mellon Corp purchased a new stake in shares of Invesco Mortgage Capital during the second quarter worth about $2,087,000. BlackRock Inc. purchased a new position in Invesco Mortgage Capital in the 2nd quarter worth approximately $69,562,000. Bank of America Corp DE lifted its holdings in Invesco Mortgage Capital by 190.1% in the 1st quarter. Bank of America Corp DE now owns 410,787 shares of the real estate investment trust's stock worth $3,319,000 after purchasing an additional 269,195 shares in the last quarter. State Street Corp boosted its stake in 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 worth $14,803,000 after purchasing an additional 443,882 shares during the period. Finally, Odyssean LLC boosted its stake in Invesco Mortgage Capital by 144.9% in the 2nd quarter. Odyssean LLC now owns 374,410 shares of the real estate investment trust's stock worth $2,958,000 after purchasing an additional 221,498 shares during the period. 40.54% of the stock is owned by institutional investors.

About Invesco Mortgage Capital

Invesco Mortgage Capital Inc is a real estate investment trust (REIT) that invests in and manages a portfolio of mortgage-related assets. The company's primary investments include residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS) and other mortgage-related investments.

Its portfolio has historically included agency RMBS, which are issued or guaranteed by U.S. government-sponsored enterprises or government agencies, as well as non-agency RMBS and commercial mortgage investments.

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