Invesco Mortgage Capital (NYSE:IVR) Sets New 52-Week Low - Time to Sell?

Key Points

• Invesco Mortgage Capital shares hit a new 52-week low of $7.10, below the 50-day and 200-day moving averages of $7.64 and $7.96, respectively.
• Analyst sentiment is mixed but leans cautious: the stock has a consensus “Hold” rating and an average price target of $8.38, with recent downgrades to “Sell” and “Strong Sell.”
• The company reported quarterly EPS of $0.50, in line with estimates, but revenue of $30.1 million fell short of the $46.48 million consensus. It also announced a $0.12 monthly dividend, representing an indicated yield of about 20.2%.

Invesco Mortgage Capital Inc (NYSE:IVR - Get Free Report)'s share price hit a new 52-week low during trading on Thursday . The company traded as low as $7.10 and last traded at $7.1050, with a volume of 931319 shares. The stock had previously closed at $7.14.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on IVR shares. Zacks Research downgraded Invesco Mortgage Capital from a "hold" rating to a "strong sell" rating in a research report on Wednesday, August 26th. Wall Street Zen downgraded Invesco Mortgage Capital from a "hold" rating to a "sell" rating in a research note on Saturday, August 8th. UBS Group set a $7.75 price objective on Invesco Mortgage Capital and gave the company a "neutral" rating in a research note on Wednesday, August 19th. Finally, Weiss Ratings raised shares of Invesco Mortgage Capital from a "sell (d+)" rating to a "hold (c)" rating in a report on Tuesday, August 11th. One analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $8.38.

Invesco Mortgage Capital Trading Up 0.1%

The firm has a 50 day moving average of $7.64 and a 200-day moving average of $7.96. The company has a market cap of $769.09 million, a P/E ratio of 4.82 and a beta of 1.62.

Invesco Mortgage Capital (NYSE:IVR - Get Free Report) last posted 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. The business had revenue of $30.10 million during the quarter, compared to the consensus estimate of $46.48 million. Invesco Mortgage Capital had a return on equity of 26.48% and a net margin of 38.01%. Equities analysts predict that Invesco Mortgage Capital Inc will post 1.97 EPS for the current fiscal year.

Invesco Mortgage Capital Announces Dividend

The business also recently announced a monthly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, August 25th will be given a dividend of $0.12 per share. The ex-dividend date is Tuesday, August 25th. This represents a c) dividend on an annualized basis and a dividend yield of 20.2%. Invesco Mortgage Capital's dividend payout ratio is currently 97.30%.

Institutional Trading of Invesco Mortgage Capital

A number of institutional investors and hedge funds have recently bought and sold shares of IVR. Northwestern Mutual Wealth Management Co. lifted its stake in Invesco Mortgage Capital by 3,282.2% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,044 shares of the real estate investment trust's stock worth $26,000 after purchasing an additional 2,954 shares in the last quarter. Kestra Advisory Services LLC purchased a new position in shares of Invesco Mortgage Capital during the fourth quarter valued at about $33,000. Comerica Bank increased its holdings in shares of Invesco Mortgage Capital by 1,722.1% in the third quarter. Comerica Bank now owns 5,120 shares of the real estate investment trust's stock worth $39,000 after purchasing an additional 4,839 shares during the last quarter. Caption Management LLC bought a new stake in shares of Invesco Mortgage Capital in the fourth quarter worth about $43,000. Finally, BNP Paribas Financial Markets lifted its position in shares of Invesco Mortgage Capital by 83.5% in the second quarter. BNP Paribas Financial Markets now owns 5,599 shares of the real estate investment trust's stock worth $44,000 after buying an additional 2,548 shares in the last quarter. 40.54% of the stock is currently owned by institutional investors.

About Invesco Mortgage Capital

Invesco Mortgage Capital Inc NYSE: IVR is a real estate investment trust that specializes in investing in U.S. residential mortgage-backed securities. The company's portfolio is weighted toward agency-guaranteed RMBS issued or guaranteed by U.S. government-sponsored enterprises such as Fannie Mae, Freddie Mac and Ginnie Mae. By focusing on collateral backed by federal agencies, Invesco Mortgage Capital seeks to generate attractive returns while managing credit risk through securities that carry explicit or implicit government guarantees.

To enhance its portfolio yield, the company employs leverage through repurchase agreements, warehouse facilities and debt financing.

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