Nomura Holdings Reiterates a Buy Rating on Invesco Mortgage

By Jason Carr

In a report released today, Brock Vandervliet from Nomura Holdings reiterated a Buy rating on Invesco Mortgage (NYSE: IVR), with a price target of $17. The company’s shares closed yesterday at $14.88.

According to TipRanks.com, Vandervliet is a 4-star analyst with an average return of 7.9% and a 73.5% success rate. Vandervliet covers the Financial sector, focusing on stocks such as Chimera Investment Corp., American Capital Agency, and Altisource Residential.

Currently, the analyst consensus on Invesco Mortgage is Moderate Buy and the average price target is $16.65, representing an 11.9% upside.

In a report issued on November 3, Credit Suisse also reiterated a Buy rating on the stock with a $16.50 price target.

Based on Invesco Mortgage’s latest earnings report from September 30, the company posted quarterly revenue of $178.5M and quarterly net profit of $134.9M. In comparison, last year the company earned revenue of $-56.62M and had a net profit of -$138.8M.

Based on the recent corporate insider activity of 25 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of IVR in relation to earlier this year. Most recently, in May 2015, Richard J. King, the President & CEO of IVR bought 3,000 shares for a total of $47,730.

Invesco Mortgage Capital, Inc. operates as a real estate investment trust. It acquires, finances and manages residential and commercial mortgage-backed securities and mortgage loans. It seeks to provide attractive risk-adjusted returns to its shareholders, primarily through dividends and secondarily through capital appreciation. Its portfolio consists of: Agency Residential Mortgage-Backed Securities (RMBS); Non-Agency RMBS; Credit risk transfer securities issued by government-sponsored enterprises (GSE CRT); Commercial mortgage-backed securities (CMBS); Residential and Commercial Mortgage Loans; and Other real estate-related financing agreements. Agency RMBS refers to RMBS that are guaranteed by a U. S. government agency such as the Government National Mortgage Association, or a federally chartered corporation such as the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac). Non-Agency RMBS are RMBS that are not guaranteed by a U. S. government agency. The company was founded on June 5, 2008 and is headquartered in Atlanta, GA.