Invesco Mortgage Capital (NYSE:IVR) Lowered to “Strong Sell” Rating by Zacks Research

Zacks Research lowered shares of Invesco Mortgage Capital (NYSE:IVR) from a hold rating to a strong sell rating in a research note released on Tuesday morning,Zacks.com reports.

IVR has been the subject of several other research reports. Weiss Ratings lowered shares of Invesco Mortgage Capital from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, May 15th. Wall Street Zen raised shares of Invesco Mortgage Capital from a “sell” rating to a “hold” rating in a research report on Saturday, May 16th. One analyst has rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and an average target price of $8.25.

Invesco Mortgage Capital Stock Down 0.4%

NYSE IVR opened at $7.89 on Tuesday. Invesco Mortgage Capital has a 52 week low of $7.10 and a 52 week high of $9.50. The firm has a market capitalization of $731.89 million, a P/E ratio of 10.66 and a beta of 1.64. The company has a 50-day moving average price of $8.10 and a 200-day moving average price of $8.32.

Invesco Mortgage Capital (NYSE:IVR) last released its quarterly earnings results on Thursday, April 30th. The real estate investment trust reported $0.55 EPS for the quarter, meeting the consensus estimate of $0.55. Invesco Mortgage Capital had a net margin of 20.50% and a return on equity of 28.12%. The firm had revenue of ($15.01) million during the quarter, compared to analyst estimates of $39.80 million. As a group, equities research analysts anticipate that Invesco Mortgage Capital will post 2.25 EPS for the current year.

Invesco Mortgage Capital Announces Dividend

The company also recently announced a monthly dividend, which will be paid on Friday, June 12th. Investors of record on Tuesday, May 26th will be issued a $0.12 dividend. This represents a c) annualized dividend and a yield of 18.3%. The ex-dividend date of this dividend is Tuesday, May 26th. Invesco Mortgage Capital’s dividend payout ratio is currently 194.59%.

Institutional Investors Weigh In On Invesco Mortgage Capital

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Picton Mahoney Asset Management purchased a new stake in Invesco Mortgage Capital in the 3rd quarter worth approximately $955,000. UBS Group AG boosted its stake in Invesco Mortgage Capital by 68.8% in the 4th quarter. UBS Group AG now owns 1,094,468 shares of the real estate investment trust’s stock worth $9,204,000 after purchasing an additional 446,017 shares during the period. ProShare Advisors LLC boosted its stake in Invesco Mortgage Capital by 14.3% in the 4th quarter. ProShare Advisors LLC now owns 13,101 shares of the real estate investment trust’s stock worth $110,000 after purchasing an additional 1,644 shares during the period. Ares Financial Consulting LLC bought a new position in Invesco Mortgage Capital in the 4th quarter worth approximately $132,000. Finally, Penserra Capital Management LLC boosted its stake in Invesco Mortgage Capital by 3.5% in the 3rd quarter. Penserra Capital Management LLC now owns 144,431 shares of the real estate investment trust’s stock worth $1,091,000 after purchasing an additional 4,885 shares during the period. 40.54% of the stock is owned by hedge funds and other 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.