Wall Street Zen Downgrades Invesco Mortgage Capital (NYSE:IVR) to Sell

Key Points

• Wall Street Zen downgraded Invesco Mortgage Capital (NYSE:IVR) from a "hold" to a "sell" rating in a research note issued Saturday.
• Analyst opinions are mixed—Compass Point initiated coverage with a "buy" and $9 target while Weiss and Zacks moved to "hold"—leaving the consensus average rating at "Hold" with an average target price of $8.25.
• Recent results showed a slight EPS miss (Q: $0.56 vs. $0.58 est.) despite revenue beating estimates; the stock opened at $8.41, has a market cap of ~$731M and a one-year range of $6.01–$9.50.

Invesco Mortgage Capital (NYSE:IVR - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday.

A number of other equities research analysts have also recently commented on the company. Weiss Ratings upgraded Invesco Mortgage Capital from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, February 2nd. Compass Point started coverage on Invesco Mortgage Capital in a research note on Monday, December 15th. They set a "buy" rating and a $9.00 target price on the stock. Finally, Zacks Research cut Invesco Mortgage Capital from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, January 27th. One equities research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, Invesco Mortgage Capital currently has an average rating of "Hold" and an average target price of $8.25.

Invesco Mortgage Capital Price Performance

NYSE IVR opened at $8.41 on Friday. The stock has a market capitalization of $730.81 million, a price-to-earnings ratio of 6.57 and a beta of 1.72. Invesco Mortgage Capital has a one year low of $6.01 and a one year high of $9.50. The business's fifty day moving average is $8.35 and its 200-day moving average is $8.16.

Invesco Mortgage Capital (NYSE:IVR - Get Free Report) last released its earnings results on Thursday, January 29th. The real estate investment trust reported $0.56 EPS for the quarter, missing analysts' consensus estimates of $0.58 by ($0.02). The business had revenue of $56.06 million for the quarter, compared to the consensus estimate of $47.99 million. Invesco Mortgage Capital had a return on equity of 28.85% and a net margin of 34.30%. Research analysts expect that Invesco Mortgage Capital will post 2.49 EPS for the current fiscal year.

Institutional Investors Weigh In On Invesco Mortgage Capital

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Wolverine Asset Management LLC increased its position in shares of Invesco Mortgage Capital by 23.5% during the third quarter. Wolverine Asset Management LLC now owns 1,191,069 shares of the real estate investment trust's stock valued at $9,004,000 after buying an additional 226,411 shares during the period. Picton Mahoney Asset Management bought a new stake in shares of Invesco Mortgage Capital during the third quarter valued at about $955,000. Comerica Bank increased its position in shares of Invesco Mortgage Capital by 1,722.1% during the third quarter. Comerica Bank now owns 5,120 shares of the real estate investment trust's stock valued at $39,000 after buying an additional 4,839 shares during the period. Kestra Advisory Services LLC bought a new stake in shares of Invesco Mortgage Capital during the fourth quarter valued at about $33,000. Finally, Northwestern Mutual Wealth Management Co. increased its position in shares of Invesco Mortgage Capital by 3,282.2% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,044 shares of the real estate investment trust's stock valued at $26,000 after buying an additional 2,954 shares during the period. 40.54% of the stock is currently owned by institutional investors.

Invesco Mortgage Capital Company Profile

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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