Invesco Mortgage Capital Inc. [NYSE: IVR] stock went on a downward path that fall over -0.47% on Friday, amounting to a one-week price increase of more than 26.49%. The company report on May 27, 2021 that Invesco Mortgage Capital Inc. Announces Pricing of Public Offering of Common Stock.
Invesco Mortgage Capital Inc. (the “Company”) (NYSE: IVR) announced the pricing of its public offering of 37.5 million shares of its common stock, resulting in gross proceeds of approximately $128.625 million, before deducting any underwriting compensation or estimated offering expenses. In connection with the offering, the Company has granted the underwriters a 30-day option to purchase up to an additional 5.625 million shares of the Company’s common stock. The offering is expected to close on June 1, 2021.
The Company intends to use the net proceeds from this offering to pay for the previously announced redemption of the issued and outstanding shares of the Company’s 7.75% Series A Cumulative Redeemable Preferred Stock, $0.01 par value per share, and to use any remaining net proceeds for general corporate purposes, which may include, among other things, repayment of maturing obligations, capital expenditures and working capital.
Over the last 12 months, IVR stock dropped by -1.39%. The one-year Invesco Mortgage Capital Inc. stock forecast points to a potential downside of -47.57. The average equity rating for IVR stock is currently 3.70, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $1.21 billion, with 230.85 million shares outstanding and 230.39 million shares in the current float. Compared to the average trading volume of 10.77M shares, IVR stock reached a trading volume of 47942974 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on Invesco Mortgage Capital Inc. [IVR]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for IVR shares is $2.88 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on IVR stock is a recommendation set at 3.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Jefferies have made an estimate for Invesco Mortgage Capital Inc. shares, keeping their opinion on the stock as Underperform, with their previous recommendation back on December 14, 2020. While these analysts kept the previous recommendation, BofA Securities raised their target price to Underperform. The new note on the price target was released on June 30, 2020, representing the official price target for Invesco Mortgage Capital Inc. stock. Previously, the target price had yet another drop from $3 to $2, while Barclays kept a Underweight rating on IVR stock.
The Average True Range (ATR) for Invesco Mortgage Capital Inc. is set at 0.19, with the Price to Sales ratio for IVR stock in the period of the last 12 months amounting to 7.63. The Price to Book ratio for the last quarter was 1.04, with the Price to Cash per share for the same quarter was set at 0.70. Price to Free Cash Flow for IVR in the course of the last twelve months was 31.75.
IVR Stock Performance Analysis:
Invesco Mortgage Capital Inc. [IVR] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 26.49. With this latest performance, IVR shares gained by 26.11% in over the last four-week period, additionally plugging by 25.74% over the last 6 months – not to mention a drop of -1.39% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for IVR stock in for the last two-week period is set at 75.02, with the RSI for the last a single of trading hit 82.87, and the three-weeks RSI is set at 68.76 for Invesco Mortgage Capital Inc. [IVR]. The present Moving Average for the last 50 days of trading for this stock 3.72, while it was recorded at 3.93 for the last single week of trading, and 3.43 for the last 200 days.
Insight into Invesco Mortgage Capital Inc. Fundamentals:
Return on Total Capital for IVR is now -9.65, given the latest momentum, and Return on Invested Capital for the company is -59.28. Return on Equity for this stock declined to -77.89, with Return on Assets sitting at -10.81. When it comes to the capital structure of this company, Invesco Mortgage Capital Inc. [IVR] has a Total Debt to Total Equity ratio set at 528.74. Additionally, IVR Total Debt to Total Capital is recorded at 84.10, with Total Debt to Total Assets ending up at 83.73.
Receivables Turnover for the company is -15.75 with a Total Asset Turnover recorded at a value of -0.06.
IVR Stock EPS
With the latest financial reports released by the company, Invesco Mortgage Capital Inc. posted -1.8/share EPS, while the average EPS was predicted by analysts to be reported at -0.46/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -291.30%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for IVR. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Invesco Mortgage Capital Inc. go to 1.70%.
Invesco Mortgage Capital Inc. [IVR] Insider Position Details
There are presently around $605 million, or 50.60% of IVR stock, in the hands of institutional investors. The top three institutional holders of IVR stocks are: BLACKROCK INC. with ownership of 42,562,375, which is approximately 29.462% of the company’s market cap and around 0.10% of the total institutional ownership; VANGUARD GROUP INC, holding 23,538,155 shares of the stock with an approximate value of $100.04 million in IVR stocks shares; and SUSQUEHANNA INTERNATIONAL GROUP, LLP, currently with $32.62 million in IVR stock with ownership of nearly 27.337% of the company’s market capitalization.
Positions in Invesco Mortgage Capital Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 124 institutional holders increased their position in Invesco Mortgage Capital Inc. [NYSE:IVR] by around 40,563,601 shares. Additionally, 70 investors decreased positions by around 6,697,432 shares, while 23 investors held positions by with 94,988,156 shares. The mentioned changes placed institutional holdings at 142,249,189 shares, according to the latest SEC report filing. IVR stock had 27 new institutional investments in for a total of 6,316,002 shares, while 27 institutional investors sold positions of 2,455,852 shares during the same period.