Invesco Ltd. (NYSE:IVZ) Sees Short Interest Climb 16.3% in December

Invesco Ltd. (NYSE:IVZ) experienced a significant rise in short interest throughout December. As of December 15th, short interest reached a total of 10,860,000 shares, reflecting a 16.3% increase compared to the November 30th figure of 9,340,000 shares. With an average daily trading volume of 3,650,000 shares, the current short-interest ratio stands at 3.0 days. This indicates that about 2.5% of Invesco's total shares are sold short.

Recent Changes by Institutional Investors

Several large institutional investors have adjusted their positions in Invesco recently. Massachusetts Mutual Life Insurance Co. acquired a significant new stake valued at approximately $1.43 billion in the third quarter. Meanwhile, Dimensional Fund Advisors LP increased its holdings by 22.7% during the second quarter, bringing their total ownership to 18,084,231 shares valued at $270.54 million after purchasing an additional 3,349,069 shares. In a similar trend, Azora Capital LP invested around $27.29 million in shares of Invesco during the third quarter. Marshall Wace LLP also expanded its holdings significantly, increasing its stake by 115.7% to now hold 1,221,187 shares valued at $18.27 million following the purchase of 654,960 additional shares. Furthermore, UBS AM, a division of UBS Asset Management Americas LLC, raised its stake by 131.3% in the third quarter, currently owning 910,156 shares worth $15.98 million after acquiring an additional 516,622 shares. Currently, institutional investors and hedge funds own approximately 66.09% of Invesco's stock.

Current Stock Performance

On Monday, Invesco's stock opened at $17.68. The stock has a 50-day moving average of $17.84 and a 200-day moving average of $16.91. Over the past year, the stock hit a low of $14.16 and reached a high of $18.94. The company's market capitalization stands at $7.95 billion, with a price-to-earnings (P/E) ratio of -19.22, a price-to-earnings growth (PEG) ratio of 1.05, and a beta of 1.43. Invesco has a current ratio and quick ratio of 4.91, along with a debt-to-equity ratio of 0.66.

Invesco last reported its quarterly earnings on October 22nd. The asset manager posted earnings per share (EPS) of $0.44 for the quarter, surpassing the analysts' expectations of $0.43 by $0.01. The company registered a return on equity of 8.83%, although it faced a net margin of -3.00%. The reported revenue for the quarter was $1.10 billion, slightly below the consensus estimate of $1.11 billion. In the same quarter last year, the company had an EPS of $0.35, indicating a 20.8% decline in revenue compared to the prior year. Analysts predict that Invesco will deliver an EPS of 1.7 for the current financial year.

Dividend Announcement

Recently, Invesco declared its quarterly dividend, which was paid on December 3rd. Stockholders on record as of November 14th received a dividend payment of $0.205, which translates to an annualized dividend of $0.82 and a yield of 4.64%. The ex-dividend date was November 14th, and currently, Invesco’s dividend payout ratio stands at -89.13%.

Analysts Update Price Targets

In the wake of recent developments, several analysts have revised their price targets for Invesco. UBS Group raised its target from $17.50 to $19.00, giving the stock a “neutral” rating. Similarly, Deutsche Bank increased its target from $18.00 to $19.00, maintaining a “hold” rating. On the other hand, Keefe Bruyette & Woods reduced their target price from $19.00 to $18.00, categorizing it as a “market perform.” Royal Bank of Canada also upped its price objective from $18.00 to $19.00 and maintained a “sector perform” rating. Additionally, Wells Fargo raised its target from $16.50 to $17.50, rating the company as “underweight.” Overall, one analyst has rated the stock as a sell, eleven rated it as a hold, and one gave it a buy rating, resulting in an average rating of “Hold” with a consensus price target of $18.88.

Overview of Invesco Ltd.

Invesco Ltd. is an investment management firm that operates as a publicly traded company. It offers a variety of services to different clients, including retail investors, institutions, high-net-worth individuals, public entities, corporations, unions, non-profit organizations, endowments, foundations, pension funds, financial institutions, and sovereign wealth funds.

Conclusion

As Invesco continues to navigate the market dynamics, both institutional interest and stock performance will be critical areas to watch moving forward.

Invesco, Stocks, Investors