Invesco (NYSE:IVZ) Shares Gap Down Following Weak Earnings

Invesco Ltd. (NYSE:IVZ)’s stock price gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $15.58, but opened at $14.64. Invesco shares last traded at $14.89, with a volume of 1,783,750 shares changing hands.

The asset manager reported $0.33 EPS for the quarter, missing analysts’ consensus estimates of $0.40 by ($0.07). Invesco had a negative net margin of 1.74% and a positive return on equity of 7.11%. The business had revenue of $1.48 billion during the quarter, compared to analysts’ expectations of $1.08 billion. During the same period in the previous year, the company posted $0.38 earnings per share. Invesco’s quarterly revenue was up 4.0% on a year-over-year basis.

Invesco Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 4th. Shareholders of record on Tuesday, May 14th will be given a dividend of $0.205 per share. This represents a $0.82 dividend on an annualized basis and a yield of 5.65%. This is a boost from Invesco’s previous quarterly dividend of $0.20. The ex-dividend date of this dividend is Monday, May 13th. Invesco’s dividend payout ratio (DPR) is presently -106.67%.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on IVZ shares. BMO Capital Markets restated a “market perform” rating and set a $17.00 price target (down previously from $18.00) on shares of Invesco in a research note on Wednesday. JPMorgan Chase & Co. reduced their target price on shares of Invesco from $17.00 to $16.50 and set a “neutral” rating for the company in a research note on Wednesday. Royal Bank of Canada boosted their price target on shares of Invesco from $14.00 to $16.00 and gave the stock a “sector perform” rating in a research note on Thursday, January 18th. UBS Group lowered their price objective on Invesco from $18.00 to $17.00 and set a “neutral” rating on the stock in a report on Monday, January 29th. Finally, TD Cowen cut their target price on Invesco from $21.00 to $19.50 and set a “buy” rating for the company in a research note on Wednesday. Ten research analysts have rated the stock with a hold rating and two have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $16.79.

Hedge Funds Weigh In On Invesco

Several hedge funds and other institutional investors have recently bought and sold shares of IVZ. Quantbot Technologies LP increased its position in shares of Invesco by 276.8% in the third quarter. Quantbot Technologies LP now owns 81,754 shares of the asset manager’s stock valued at $1,187,000 after buying an additional 60,057 shares in the last quarter. Oak Thistle LLC purchased a new position in Invesco during the 4th quarter valued at about $1,166,000. Northern Trust Corp raised its position in Invesco by 30.7% during the third quarter. Northern Trust Corp now owns 5,943,943 shares of the asset manager’s stock worth $86,306,000 after acquiring an additional 1,395,023 shares during the last quarter. Raymond James & Associates lifted its holdings in shares of Invesco by 4.5% in the third quarter. Raymond James & Associates now owns 65,917 shares of the asset manager’s stock valued at $957,000 after purchasing an additional 2,846 shares in the last quarter. Finally, Hsbc Holdings PLC grew its position in shares of Invesco by 99.6% in the third quarter. Hsbc Holdings PLC now owns 749,137 shares of the asset manager’s stock valued at $10,912,000 after purchasing an additional 373,778 shares during the last quarter. 66.09% of the stock is owned by institutional investors and hedge funds.

Invesco Price Performance

The company has a debt-to-equity ratio of 0.54, a quick ratio of 5.01 and a current ratio of 5.01. The stock’s 50 day moving average price is $15.73 and its two-hundred day moving average price is $15.44.

Invesco Company Profile

Invesco Ltd. is a publicly owned investment manager. The firm provides its services to retail clients, institutional clients, high-net worth clients, public entities, corporations, unions, non-profit organizations, endowments, foundations, pension funds, financial institutions, and sovereign wealth funds.