Invesco Mortgage Capital Inc (NYSE:IVR) Sees Large Increase in Short Interest

Invesco Mortgage Capital Inc (NYSE:IVR) was the target of a large growth in short interest in the month of February. As of February 13th, there was short interest totaling 7,607,552 shares, a growth of 20.2% from the January 29th total of 6,331,525 shares. Based on an average daily volume of 2,651,944 shares, the days-to-cover ratio is presently 2.9 days. Approximately 10.8% of the company’s stock are sold short. Approximately 10.8% of the company’s stock are sold short. Based on an average daily volume of 2,651,944 shares, the days-to-cover ratio is presently 2.9 days.

Invesco Mortgage Capital Price Performance

NYSE:IVR opened at $8.36 on Wednesday. Invesco Mortgage Capital has a twelve month low of $5.86 and a twelve month high of $9.50. The firm has a market capitalization of $696.14 million, a price-to-earnings ratio of 6.53 and a beta of 1.76. The stock’s 50 day moving average price is $8.74 and its two-hundred day moving average price is $8.09.

Invesco Mortgage Capital (NYSE:IVR) last released its earnings results on Thursday, January 29th. The real estate investment trust reported $0.56 earnings per share for the quarter, missing the consensus estimate of $0.58 by ($0.02). The firm had revenue of $56.06 million during the quarter, compared to the consensus estimate of $47.99 million. Invesco Mortgage Capital had a net margin of 34.30% and a return on equity of 28.85%. As a group, analysts anticipate that Invesco Mortgage Capital will post 2.49 earnings per share for the current year.

Invesco Mortgage Capital Announces Dividend

The company also recently disclosed a monthly dividend, which will be paid on Friday, March 13th. Stockholders of record on Tuesday, February 24th will be paid a dividend of $0.12 per share. The ex-dividend date is Tuesday, February 24th. This represents a c) annualized dividend and a dividend yield of 17.2%. Invesco Mortgage Capital’s payout ratio is currently 37.50%.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on IVR shares. Wall Street Zen lowered shares of Invesco Mortgage Capital from a “hold” rating to a “sell” rating in a research note on Saturday. Weiss Ratings raised shares of Invesco Mortgage Capital from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Monday, February 2nd. Compass Point began coverage on Invesco Mortgage Capital in a report on Monday, December 15th. They set a “buy” rating and a $9.00 price objective for the company. Finally, Zacks Research lowered Invesco Mortgage Capital from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, January 27th. One investment analyst has rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus target price of $8.25.

Hedge Funds Weigh In On Invesco Mortgage Capital

A number of hedge funds and other institutional investors have recently bought and sold shares of IVR. Millennium Management LLC increased its position in Invesco Mortgage Capital by 1,607.0% during the third quarter. Millennium Management LLC now owns 1,523,395 shares of the real estate investment trust’s stock worth $11,517,000 after buying an additional 1,434,149 shares during the last quarter. UBS Group AG boosted its stake in shares of Invesco Mortgage Capital by 68.8% during 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 acquiring an additional 446,017 shares during the period. Two Sigma Investments LP increased its holdings in shares of Invesco Mortgage Capital by 66.0% during the 3rd quarter. Two Sigma Investments LP now owns 1,017,198 shares of the real estate investment trust’s stock worth $7,690,000 after acquiring an additional 404,497 shares during the last quarter. Wolverine Asset Management LLC raised its stake in Invesco Mortgage Capital by 23.5% in the 3rd quarter. Wolverine Asset Management LLC now owns 1,191,069 shares of the real estate investment trust’s stock valued at $9,004,000 after acquiring an additional 226,411 shares during the period. Finally, Invesco Ltd. lifted its holdings in Invesco Mortgage Capital by 8.5% during the 4th quarter. Invesco Ltd. now owns 2,555,890 shares of the real estate investment trust’s stock valued at $21,495,000 after purchasing an additional 199,259 shares during the last quarter. Institutional investors own 40.54% of the company’s stock.

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.