Invesco Mortgage Capital (NYSE:IVR) Sets New 1-Year Low - What's Next?

Key Points

• Invesco Mortgage Capital shares hit a new 52-week low of $5.18, below the prior close of $5.33; its 50-day and 200-day moving averages were $6.01 and $7.54, respectively.
• Analyst views are mixed, with an overall “Hold” rating and average price target of $8.38. Recent downgrades to “Sell” were offset by a Zacks upgrade to “Hold.”
• The REIT slightly beat quarterly EPS estimates ($0.47 versus $0.46), but revenue fell short of forecasts. It also declared a monthly $0.12-per-share dividend, equivalent to a stated annualized yield of 27.8%.

Invesco Mortgage Capital Inc (NYSE:IVR - Get Free Report) shares hit a new 52-week low during trading on Wednesday. The company traded as low as $5.18 and last traded at $5.1850, with a volume of 2,772,396 shares. The stock had previously closed at $5.33.

Wall Street Analyst Weigh In

IVR has been the topic of several analyst reports. Weiss Ratings lowered Invesco Mortgage Capital from a "hold (c-)" rating to a "sell (d)" rating in a report on Monday. 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 Invesco Mortgage Capital from a "strong sell" rating to a "hold" rating in a research report on Thursday, October 8th. Finally, UBS Group set a $7.75 price objective on shares of Invesco Mortgage Capital and gave the stock a "neutral" rating in a research note on Wednesday, August 19th. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $8.38.

Invesco Mortgage Capital Price Performance

The business's 50 day simple moving average is $6.01 and its 200 day simple moving average is $7.54. The company has a market capitalization of $565.68 million, a PE ratio of -28.80 and a beta of 1.73.

Invesco Mortgage Capital (NYSE:IVR - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The real estate investment trust reported $0.47 EPS for the quarter, beating the consensus estimate of $0.46 by $0.01. Invesco Mortgage Capital had a negative net margin of 8.49% and a positive return on equity of 26.75%. The firm had revenue of $33.93 million for the quarter, compared to analyst estimates of $57.52 million. As a group, analysts anticipate that Invesco Mortgage Capital Inc will post 1.97 EPS for the current year.

Invesco Mortgage Capital Announces Dividend

The business also recently declared a monthly dividend, which will be paid on Monday, November 16th. Shareholders of record on Monday, October 26th will be given a dividend of $0.12 per share. The ex-dividend date is Monday, October 26th. This represents a $1.44 dividend on an annualized basis and a dividend yield of 27.8%. Invesco Mortgage Capital's dividend payout ratio (DPR) is currently -800.00%.

Institutional Investors Weigh In On Invesco Mortgage Capital

Several institutional investors and hedge funds have recently modified their holdings of IVR. BlackRock Inc. purchased a new stake in Invesco Mortgage Capital during the 2nd quarter worth approximately $69,562,000. State Street Corp lifted its holdings 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 buying an additional 443,882 shares during the last quarter. Bank of America Corp DE boosted its holdings in Invesco Mortgage Capital by 190.1% in the first quarter. Bank of America Corp DE now owns 410,787 shares of the real estate investment trust's stock valued at $3,319,000 after purchasing an additional 269,195 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in Invesco Mortgage Capital in the second quarter valued at approximately $2,087,000. Finally, Odyssean LLC increased its stake in Invesco Mortgage Capital by 144.9% in the second quarter. Odyssean LLC now owns 374,410 shares of the real estate investment trust's stock valued at $2,958,000 after purchasing an additional 221,498 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. is a real estate investment trust that invests in mortgage-related assets, with a portfolio focused on residential and commercial mortgage-backed securities and mortgage loans. Its investments include securities backed by U.S. government agencies as well as non-agency securities. Founded in 2009, the company is externally managed by Invesco Advisers, Inc., an investment adviser affiliated with Invesco Ltd. Its activities are primarily focused on U.S. mortgage markets.

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