Zacks Research Downgrades Invesco Mortgage Capital (NYSE:IVR) to Strong Sell

Invesco Mortgage Capital (NYSE:IVR) was downgraded by research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

IVR has been the subject of a number of other reports. UBS Group set a $7.75 price objective on shares of Invesco Mortgage Capital and gave the company a “neutral” rating in a research note on Wednesday, August 19th. Weiss Ratings upgraded shares of Invesco Mortgage Capital from a “sell (d+)” rating to a “hold (c)” rating in a research note on Tuesday, August 11th. Finally, Wall Street Zen cut shares of Invesco Mortgage Capital from a “hold” rating to a “sell” rating in a report on Saturday, August 8th. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $8.38.

Invesco Mortgage Capital Price Performance

Shares of NYSE:IVR opened at $7.42 on Wednesday. Invesco Mortgage Capital has a 1-year low of $7.10 and a 1-year high of $9.50. The business has a fifty day moving average price of $7.69 and a 200-day moving average price of $8.00. The company has a market capitalization of $798.37 million, a PE ratio of 5.01 and a beta of 1.60.

Invesco Mortgage Capital (NYSE:IVR) last posted its quarterly earnings results on Thursday, July 30th. The real estate investment trust reported $0.50 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.50. The firm had revenue of $30.10 million during the quarter, compared to analyst estimates of $46.48 million. Invesco Mortgage Capital had a return on equity of 26.48% and a net margin of 38.01%. On average, sell-side analysts anticipate that Invesco Mortgage Capital will post 1.97 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Invesco Mortgage Capital

Hedge funds and other institutional investors have recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Invesco Mortgage Capital by 3,282.2% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,044 shares of the real estate investment trust’s stock worth $26,000 after buying an additional 2,954 shares during the last quarter. Kestra Advisory Services LLC purchased a new stake in Invesco Mortgage Capital during the fourth quarter valued at $33,000. Comerica Bank increased its position in Invesco Mortgage Capital by 1,722.1% during the third quarter. Comerica Bank now owns 5,120 shares of the real estate investment trust’s stock valued at $39,000 after acquiring an additional 4,839 shares during the last quarter. Caption Management LLC bought a new position in Invesco Mortgage Capital in the fourth quarter valued at about $43,000. Finally, BNP Paribas Financial Markets lifted its holdings in Invesco Mortgage Capital by 83.5% in the second quarter. BNP Paribas Financial Markets now owns 5,599 shares of the real estate investment trust’s stock valued at $44,000 after acquiring an additional 2,548 shares during the period. 40.54% of the stock is owned by institutional investors.

Invesco Mortgage Capital Company Profile

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.