Invesco (IVZ) Upgraded to “Hold” at Zacks Investment Research
Zacks Investment Research upgraded shares of Invesco (NYSE:IVZ) from a sell rating to a hold rating in a report published on Monday.
According to Zacks, “Shares of Invesco have significantly underperformed the industry over the past six months. The company’s earnings have surpassed the Zacks Consensus Estimate in two of the trailing four quarters. The company's operating expenses are expected to continue increasing in the quarters ahead, mainly due to its inorganic growth strategy and investment in franchise. Also, high debt levels and the presence of various intangible assets on the company's balance sheet remain major concerns. However, improving assets under management, acquisition of exchange-traded funds (ETF) operation of Guggenheim Partners LLC and diverse product offerings are likely to support growth. Also, the company's steady capital deployment activities reflect strong balance position.”
A number of other brokerages have also weighed in on IVZ. Morgan Stanley decreased their price target on shares of Invesco from $31.00 to $29.00 and set an equal weight rating on the stock in a research note on Thursday, August 2nd. TheStreet lowered shares of Invesco from a b- rating to a c+ rating in a research note on Tuesday, May 29th. Credit Suisse Group decreased their price target on shares of Invesco from $39.00 to $37.00 and set an outperform rating on the stock in a research note on Friday, July 27th. ValuEngine lowered shares of Invesco from a sell rating to a strong sell rating in a research note on Saturday, June 2nd. Finally, Wells Fargo & Co decreased their price target on shares of Invesco from $34.00 to $32.00 and set an outperform rating on the stock in a research note on Friday, July 13th. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and seven have issued a buy rating to the company. Invesco has an average rating of Hold and an average price target of $35.79.
Invesco (NYSE:IVZ) last issued its quarterly earnings results on Thursday, July 26th. The asset manager reported $0.66 earnings per share for the quarter, meeting the Zacks’ consensus estimate of $0.66. The firm had revenue of $974.00 million for the quarter, compared to analyst estimates of $960.91 million. Invesco had a net margin of 21.64% and a return on equity of 12.70%. Invesco’s quarterly revenue was up 7.5% compared to the same quarter last year. During the same period last year, the company posted $0.64 EPS. sell-side analysts forecast that Invesco will post 2.71 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 4th. Shareholders of record on Thursday, August 16th were issued a $0.30 dividend. The ex-dividend date was Wednesday, August 15th. This represents a $1.20 dividend on an annualized basis and a yield of 5.07%. Invesco’s payout ratio is 44.44%.
A number of hedge funds have recently added to or reduced their stakes in the business. Neuberger Berman Group LLC raised its holdings in Invesco by 3.4% in the 1st quarter. Neuberger Berman Group LLC now owns 56,944 shares of the asset manager’s stock valued at $1,823,000 after acquiring an additional 1,888 shares during the last quarter. Caisse DE Depot ET Placement DU Quebec raised its holdings in Invesco by 3.0% in the 1st quarter. Caisse DE Depot ET Placement DU Quebec now owns 71,521 shares of the asset manager’s stock valued at $2,289,000 after acquiring an additional 2,100 shares during the last quarter. Xact Kapitalforvaltning AB raised its holdings in Invesco by 2.2% in the 2nd quarter. Xact Kapitalforvaltning AB now owns 97,871 shares of the asset manager’s stock valued at $2,599,000 after acquiring an additional 2,100 shares during the last quarter. HPM Partners LLC raised its holdings in Invesco by 4.7% in the 2nd quarter. HPM Partners LLC now owns 46,858 shares of the asset manager’s stock valued at $1,245,000 after acquiring an additional 2,109 shares during the last quarter. Finally, First Interstate Bank raised its holdings in Invesco by 89.2% in the 2nd quarter. First Interstate Bank now owns 4,500 shares of the asset manager’s stock valued at $120,000 after acquiring an additional 2,122 shares during the last quarter. Institutional investors own 78.76% of the company’s stock.
Invesco Ltd. is a publicly owned investment manager. The firm provides its services to retail clients, institutional clients, high-net worth clients, public entities, corporations, unions, non-profit organizations, endowments, foundations, pension funds, financial institutions, and sovereign wealth funds.
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