Invesco Mortgage Capital Target of Unusually Large Options Trading (NYSE:IVR)

Invesco Mortgage Capital Inc (NYSE:IVR) saw some unusual options trading activity on Friday. Investors acquired 59,068 call options on the stock. This represents an increase of 14,854% compared to the typical volume of 395 call options.

Institutional Investors Weigh In On Invesco Mortgage Capital

Hedge funds and other institutional investors have recently bought and sold shares of the company. PFG Investments LLC lifted its holdings in Invesco Mortgage Capital by 3.1% during the 3rd quarter. PFG Investments LLC now owns 64,310 shares of the real estate investment trust’s stock worth $486,000 after buying an additional 1,953 shares in the last quarter. Russell Investments Group Ltd. lifted its stake in Invesco Mortgage Capital by 16.8% in the second quarter. Russell Investments Group Ltd. now owns 14,000 shares of the real estate investment trust’s stock worth $110,000 after acquiring an additional 2,011 shares during the last quarter. Rhumbline Advisers increased its position in shares of Invesco Mortgage Capital by 2.7% in the 1st quarter. Rhumbline Advisers now owns 86,863 shares of the real estate investment trust’s stock valued at $685,000 after purchasing an additional 2,260 shares during the last quarter. Bogart Wealth LLC raised its holdings in shares of Invesco Mortgage Capital by 103.9% in the 2nd quarter. Bogart Wealth LLC now owns 4,711 shares of the real estate investment trust’s stock valued at $37,000 after purchasing an additional 2,400 shares in the last quarter. Finally, Corebridge Financial Inc. lifted its position in shares of Invesco Mortgage Capital by 9.2% during the 1st quarter. Corebridge Financial Inc. now owns 29,972 shares of the real estate investment trust’s stock worth $236,000 after purchasing an additional 2,517 shares during the last quarter. 40.54% of the stock is currently owned by institutional investors and hedge funds.

Invesco Mortgage Capital Price Performance

IVR stock traded down $0.01 during trading on Friday, hitting $8.63. The stock had a trading volume of 2,730,450 shares, compared to its average volume of 1,666,955. The company’s 50-day moving average price is $7.90 and its two-hundred day moving average price is $7.73. Invesco Mortgage Capital has a twelve month low of $5.86 and a twelve month high of $9.06. The stock has a market capitalization of $611.91 million, a P/E ratio of 16.91 and a beta of 1.71.

Invesco Mortgage Capital (NYSE:IVR) last issued its quarterly earnings results on Thursday, October 30th. The real estate investment trust reported $0.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.53 by $0.05. The firm had revenue of ($22.71) million for the quarter, compared to analyst estimates of $45.40 million. Invesco Mortgage Capital had a return on equity of 29.47% and a net margin of 18.16%. As a group, sell-side analysts expect that Invesco Mortgage Capital will post 2.49 EPS for the current fiscal year.

Invesco Mortgage Capital Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, January 23rd. Stockholders of record on Monday, December 29th will be issued a dividend of $0.36 per share. The ex-dividend date is Monday, December 29th. This represents a $1.44 annualized dividend and a dividend yield of 16.7%. This is a boost from Invesco Mortgage Capital’s previous quarterly dividend of $0.34. Invesco Mortgage Capital’s payout ratio is presently 282.35%.

Analysts Set New Price Targets

A number of equities research analysts have commented on IVR shares. Wall Street Zen upgraded Invesco Mortgage Capital from a “sell” rating to a “hold” rating in a research note on Sunday, November 9th. UBS Group raised their target price on Invesco Mortgage Capital from $7.25 to $7.50 and gave the stock a “neutral” rating in a report on Wednesday, September 3rd. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Invesco Mortgage Capital in a research note on Monday. Finally, Compass Point initiated 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. One equities research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Invesco Mortgage Capital presently has an average rating of “Hold” and an average price target of $8.25.

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.