Invesco Mortgage Capital (NYSE:IVR) Hits New 52-Week High – Should You Buy?

Invesco Mortgage Capital Inc (NYSE:IVR)’s share price reached a new 52-week high during trading on Wednesday . The stock traded as high as $9.10 and last traded at $9.0750, with a volume of 2031783 shares. The stock had previously closed at $8.96.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the company. Zacks Research upgraded Invesco Mortgage Capital from a “hold” rating to a “strong-buy” rating in a research report on Monday, December 29th. Compass Point started coverage on shares of Invesco Mortgage Capital in a research note on Monday, December 15th. They issued a “buy” rating and a $9.00 target price for the company. Weiss Ratings reissued a “sell (d+)” rating on shares of Invesco Mortgage Capital in a report on Monday, December 29th. Finally, Wall Street Zen raised shares of Invesco Mortgage Capital from a “sell” rating to a “hold” rating in a report on Sunday, November 9th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Invesco Mortgage Capital currently has an average rating of “Hold” and a consensus price target of $8.25.

Invesco Mortgage Capital Stock Performance

The stock has a market capitalization of $643.83 million, a PE ratio of 17.79 and a beta of 1.71. The stock’s 50 day moving average is $8.19 and its two-hundred day moving average is $7.80.

Invesco Mortgage Capital (NYSE:IVR) last announced its earnings results on Thursday, October 30th. The real estate investment trust reported $0.58 EPS for the quarter, beating analysts’ consensus estimates of $0.53 by $0.05. The business had revenue of ($22.71) million during the quarter, compared to analysts’ expectations of $45.40 million. Invesco Mortgage Capital had a return on equity of 29.47% and a net margin of 18.16%. Equities research analysts expect that Invesco Mortgage Capital Inc will post 2.49 EPS for the current fiscal year.

Invesco Mortgage Capital Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 23rd. Shareholders of record on Monday, December 29th will be issued a $0.36 dividend. This represents a $1.44 dividend on an annualized basis and a yield of 15.9%. The ex-dividend date is Monday, December 29th. This is an increase from Invesco Mortgage Capital’s previous quarterly dividend of $0.34. Invesco Mortgage Capital’s payout ratio is 282.35%.

Institutional Investors Weigh In On Invesco Mortgage Capital

A number of hedge funds have recently modified their holdings of the business. Vanguard Group Inc. boosted its position in Invesco Mortgage Capital by 1.4% during the third quarter. Vanguard Group Inc. now owns 3,727,534 shares of the real estate investment trust’s stock worth $28,180,000 after acquiring an additional 50,548 shares during the last quarter. Invesco Ltd. lifted its stake in Invesco Mortgage Capital by 3.8% in the 3rd quarter. Invesco Ltd. now owns 2,356,631 shares of the real estate investment trust’s stock worth $17,816,000 after purchasing an additional 86,915 shares in the last quarter. Geode Capital Management LLC lifted its stake in Invesco Mortgage Capital by 4.7% in the 2nd quarter. Geode Capital Management LLC now owns 1,577,067 shares of the real estate investment trust’s stock worth $12,366,000 after purchasing an additional 70,151 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Invesco Mortgage Capital by 7.9% during the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,544,194 shares of the real estate investment trust’s stock worth $11,674,000 after purchasing an additional 113,608 shares during the last quarter. Finally, Millennium Management LLC grew its position in shares of Invesco Mortgage Capital by 1,607.0% in the third quarter. Millennium Management LLC now owns 1,523,395 shares of the real estate investment trust’s stock valued at $11,517,000 after purchasing an additional 1,434,149 shares in the last quarter. 40.54% of the stock is currently owned by institutional investors and hedge funds.

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.