Value Hunters: Look To Invesco Ltd. (IVZ)

FIVE Stock
FIVE Stock

The Vanguard Group, Inc. recently announced the acquisition of new stake in Invesco Ltd. (NYSE:IVZ). The institutional investor has increased its shareholding in the Financial company by 13.58% to 46.61 million shares with purchase of 5.57 million shares. This fresh investment now brings its stake to 10.16% valued currently at $467.97 million. In addition, SSgA Funds Management, Inc. raised its holdings by 0.51 million to 19.13 million shares. And Mellon Investments Corp. has lifted its position by 0.20% or 20740.0 shares – to 10.31 million shares.

With over 5.14 million Invesco Ltd. (IVZ) shares trading Tuesday and a closing price of $10.18 on the day, the dollar volume was approximately $52.31 million. The shares have shown a negative weekly performance of -4.86% and its price on 09/01/20 lost nearly -0.20%. Currently, there are 460.10M common shares owned by the public and among those 375.74M 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: 18 analysts who have offered their price forecasts for IVZ have a consensus price objective of $10.07. The analysts have set the share’s price value over the next 12 months at a high of $13.00 and a low of $4.50 should the stock experience a downside. Incidentally, analysts’ outlook for the Invesco Ltd. stock is 3.20 for the next 12 months. The average price target is -1.09% below its last price level and a downside to the estimated low will see the stock lose -126.22% over that period. But an upside of 21.69% will see the stock hit the forecast high price target while mean target price for the stock is $10.50.

Insiders at the company have transacted a total of 70 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 54 of these insider trades were purchases, accounting for 1,324,991 shares. Insider sales of the common stock occurred on 16 occasions, with total insider shares sold totaling 544,965 shares.

The top 3 mutual fund holders in Invesco Ltd. are Vanguard Total Stock Market Index, JNL/Goldman Sachs Dividend Income, and Vanguard 500 Index Fund. Vanguard Total Stock Market Index owns 13.04 million shares of the company’s stock, all valued at over $130.95 million. The company sold 81783.0 shares recently to bring their total holdings to about 2.84% of the shares outstanding. JNL/Goldman Sachs Dividend Income sold 80076.0 shares to see its total holdings shrink to 8.93 million shares valued at over $89.64 million and representing 1.95% of the shares outstanding. Vanguard 500 Index Fund sold 57343.0 shares to bring its total holdings to over 7.75 million shares at a value of $77.79 million. Vanguard 500 Index Fund now owns shares totaling to 1.69% of the shares outstanding.

Shares of Invesco Ltd. (NYSE: IVZ) opened at $10.10, down -$0.1 from a prior closing price of $10.20. However, the script later closed the day at $10.18, down -0.20%. The company’s stock has a 5-day price change of -4.86% and 11.26% over the past three months. IVZ shares are trading -43.38% year to date (YTD), with the 12-month market performance down to -34.45% lower. It has a 12-month low price of $6.38 and touched a high of $19.01 over the same period. Currently, 5.14 million shares have been traded, compared to an average intraday trading volume of 6.52 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 -3.32%, -3.38%, and -19.19% respectively.

Institutional ownership of Invesco Ltd. (NYSE: IVZ) shares accounts for 84.60% of the company’s 460.10M shares outstanding. Mutual fund holders own 28.38%, while other institutional holders and individual stakeholders account for 36.76% and 18.98% respectively.

It has a market capitalization of $4.71B and a beta (3y monthly) value of 1.45. The stock’s trailing 12-month PE ratio is 10.03, while the earnings-per-share (ttm) stands at $1.02. The company has a debt-to-equity ratio at 0.90. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.26% over the week and 3.53% over the month.

Analysts forecast that Invesco Ltd. (IVZ) will achieve an EPS of $0.44 for the current quarter, $0.43 for the next quarter and $1.69 for 2021. The lowest estimate earnings-per-share for the quarter is $0.42 while analysts give the company a high EPS estimate of $0.49. Comparatively, EPS for the current quarter was $0.7 a year ago. Earnings per share for the fiscal year are expected to decrease by -41.00%, and 8.06% over the next financial year. EPS should shrink at an annualized rate of -11.50% over the next five years, compared to -10.80% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 18 brokerage firm advisors rate Invesco Ltd. (IVZ) as a “Hold” at a consensus score of 3.20. Specifically, 2 Wall Street analysts polled rate the stock as a buy, while 11 of the 18 advise that investors “hold,” and 5 rated it as a “Sell.”

Looking at the support for the IVZ, a number of firms have released research notes about the stock. Barclays stated their Underweight rating for the stock in a research note on August 13, 2020, with the firm’s price target at $11. Keefe Bruyette coverage for the Invesco Ltd. (IVZ) stock in a research note released on April 24, 2020 offered a Mkt Perform rating with a price target of $8.25. Citigroup was of a view on April 15, 2020 that the stock is Sell, while RBC Capital Mkts gave the stock Sector Perform rating on January 03, 2020, issuing a price target of $22- $19. Wells Fargo on their part issued Underweight rating on January 02, 2020.


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