Invesco Mortgage Capital (NYSE:IVR) Sets New 12-Month Low - What's Next?

Key Points

• Invesco Mortgage Capital shares hit a new 52-week low, falling as low as $5.37 and last trading near $5.31, well below its 50-day and 200-day moving averages.
• Analyst sentiment remains cautious: the stock has an average “Hold” rating and an $8.38 price target, with one Buy, three Hold, and a recent Sell downgrade.
• The REIT reported earnings in line with expectations but missed revenue estimates; it also declared a monthly $0.12 dividend, representing a high 27.1% annualized yield and a 97.3% payout ratio.

Invesco Mortgage Capital Inc (NYSE:IVR - Get Free Report) hit a new 52-week low during mid-day trading on Monday. The stock traded as low as $5.37 and last traded at $5.3050, with a volume of 442,420 shares. The stock had previously closed at $5.53.

Analysts Set New Price Targets

Several research firms recently commented on IVR. UBS Group set a $7.75 target price on Invesco Mortgage Capital and gave the company a "neutral" rating in a research report on Wednesday, August 19th. Weiss Ratings downgraded Invesco Mortgage Capital from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, September 22nd. Wall Street Zen lowered Invesco Mortgage Capital from a "hold" rating to a "sell" rating in a research report on Saturday, September 26th. Finally, Zacks Research upgraded 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. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $8.38.

Invesco Mortgage Capital Stock Performance

The stock has a market cap of $572.11 million, a price-to-earnings ratio of 3.59 and a beta of 1.69. The company's 50 day simple moving average is $6.69 and its 200 day simple moving average is $7.51.

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 analysts' consensus estimates of $0.50. The company had revenue of $30.10 million during the quarter, compared to analyst estimates of $46.48 million. Invesco Mortgage Capital had a net margin of 38.01% and a return on equity of 26.48%. Sell-side analysts predict that Invesco Mortgage Capital Inc will post 1.97 EPS for the current year.

Invesco Mortgage Capital Announces Dividend

The company also recently announced a monthly dividend, which will be paid on Monday, November 16th. Investors of record on Monday, October 26th will be issued a dividend of $0.12 per share. The ex-dividend date of this dividend is Monday, October 26th. This represents a $1.44 annualized dividend and a yield of 27.1%. Invesco Mortgage Capital's payout ratio is presently 97.30%.

Hedge Funds Weigh In On Invesco Mortgage Capital

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Allworth Financial LP acquired a new position in shares of Invesco Mortgage Capital during the 2nd quarter valued at $60,000. Global Retirement Partners LLC acquired a new stake in shares of Invesco Mortgage Capital in the second quarter valued at $70,000. Oxford Financial Group LTD. LLC acquired a new stake in shares of Invesco Mortgage Capital in the second quarter valued at $79,000. Able Wealth Management LLC bought a new position in Invesco Mortgage Capital during the first quarter valued at about $87,000. Finally, Equitable Holdings Inc. bought a new position in Invesco Mortgage Capital during the second quarter valued at about $90,000. 40.54% of the stock is owned by institutional investors.

Invesco Mortgage Capital Company Profile

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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