Now Is A Suitable Moment For A Long-Term Purchase Of Invesco Mortgage Capital Inc. (NYSE: IVR)


The Vanguard Group, Inc. recently announced the acquisition of new stake in Invesco Mortgage Capital Inc. (NYSE:IVR). The institutional investor has increased its shareholding in the Real Estate company by 7.11% to 17.34 million shares with purchase of 1.15 million shares. This fresh investment now brings its stake to 10.51% valued currently at $53.24 million. In addition, Invesco Capital Management LLC raised its holdings by 4.4 million to 6.94 million shares. And SSgA Funds Management, Inc. has lifted its position by 12.38% or 0.73 million shares – to 6.58 million shares.

With over 6.51 million Invesco Mortgage Capital Inc. (IVR) shares trading Monday and a closing price of $3.00 on the day, the dollar volume was approximately $19.54 million. The shares have shown a negative weekly performance of -4.15% and its price on 08/31/20 lost nearly -2.28%. Currently, there are 166.94M common shares owned by the public and among those 164.58M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 5 analysts who have offered their price forecasts for IVR have a consensus price objective of $2.69. The analysts have set the share’s price value over the next 12 months at a high of $3.00 and a low of $2.50 should the stock experience a downside. Incidentally, analysts’ outlook for the Invesco Mortgage Capital Inc. stock is 3.80 for the next 12 months. The average price target is -12.78% below its last price level and a downside to the estimated low will see the stock lose -20.0% over that period. But an upside of 0.0% will see the stock hit the forecast high price target while mean target price for the stock is $2.63.

Insiders at the company have transacted a total of 61 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 61 of these insider trades were purchases, accounting for 116,791 shares. Insider sales of the common stock occurred on 0 occasions, with total insider shares sold totaling 0 shares.

The top 3 mutual fund holders in Invesco Mortgage Capital Inc. are iShares Core S&P Small Cap ETF, Invesco KBW High Dividend Yield F, and Vanguard Total Stock Market Index. iShares Core S&P Small Cap ETF owns 11.31 million shares of the company’s stock, all valued at over $34.73 million. The company bought an additional 0.1 million shares recently to bring their total holdings to about 6.86% of the shares outstanding. Vanguard Total Stock Market Index bought 1656.0 shares to bring its total holdings to over 5.1 million shares at a value of $15.66 million. Vanguard Total Stock Market Index now owns shares totaling to 3.09% of the shares outstanding.

Shares of Invesco Mortgage Capital Inc. (NYSE: IVR) opened at $3.04, down -$0.03 from a prior closing price of $3.07. However, the script later closed the day at $3.00, down -2.28%. The company’s stock has a 5-day price change of -4.15% and 8.30% over the past three months. IVR shares are trading -79.03% year to date (YTD), with the 12-month market performance down to -76.77% lower. It has a 12-month low price of $1.56 and touched a high of $15.73 over the same period. Currently, 6.51 million shares have been traded, compared to an average intraday trading volume of 15.85 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -3.74%, -10.26%, and -62.20% respectively.

Institutional ownership of Invesco Mortgage Capital Inc. (NYSE: IVR) shares accounts for 58.40% of the company’s 166.94M shares outstanding. Mutual fund holders own 20.40%, while other institutional holders and individual stakeholders account for 42.57% and 0.50% respectively.

It has a market capitalization of $542.25M and a beta (3y monthly) value of 1.33. The earnings-per-share (ttm) stands at -$11.04. The company has a debt-to-equity ratio at 1.24. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.14% over the week and 5.57% over the month.

Analysts forecast that Invesco Mortgage Capital Inc. (IVR) will achieve an EPS of $0.03 for the current quarter, $0.04 for the next quarter and $0.22 for 2021. The lowest estimate earnings-per-share for the quarter is $0.01 while analysts give the company a high EPS estimate of $0.06. Comparatively, EPS for the current quarter was $0.4 a year ago. Earnings per share for the fiscal year are expected to increase by 334.10%, and 101.40% over the next financial year. EPS should shrink at an annualized rate of 1.70% over the next five years, compared to 26.80% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 5 brokerage firm advisors rate Invesco Mortgage Capital Inc. (IVR) as a “Hold” at a consensus score of 3.80. Specifically, 0 Wall Street analysts polled rate the stock as a buy, while 1 of the 5 advise that investors “hold,” and 3 rated it as a “Sell.”

Looking at the support for the IVR, a number of firms have released research notes about the stock. BofA Securities stated their Underperform rating for the stock in a research note on June 30, 2020, with the firm’s price target at $2.50. Barclays coverage for the Invesco Mortgage Capital Inc. (IVR) stock in a research note released on May 27, 2020 offered a Underweight rating with a price target of $2. Credit Suisse was of a view on May 26, 2020 that the stock is Underperform, while Keefe Bruyette gave the stock Mkt Perform rating on August 10, 2018, issuing a price target of. Credit Suisse on their part issued Neutral rating on January 25, 2018.


Please enter your comment!
Please enter your name here