Invesco (IVZ) Cut to Hold at Zacks Investment Research

Invesco (NYSE:IVZ) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Monday, January 8th.

According to Zacks, “Shares of Invesco have significantly underperformed the industry over the last six months. Yet, the company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all the trailing four quarters. With an aim to enhance its exchange-traded funds (ETF) operation, the company inked a deal to acquire the ETF business of Guggenheim Partners LLC. Also, strong balance sheet position along with cost savings efforts, improving assets under management (AUM) and diverse product offerings are likely to continue supporting growth. However, high-debt levels of the company might adversely affect its profitability in the long run. Further, amortization of goodwill and intangible assets remains a near-term concern for Invesco.”

Other research analysts have also issued research reports about the company. ValuEngine raised Invesco from a “hold” rating to a “buy” rating in a report on Wednesday, December 6th. Morgan Stanley lowered Invesco from an “overweight” rating to an “equal weight” rating and dropped their target price for the company from $40.00 to $39.00 in a report on Wednesday, January 3rd. JPMorgan Chase & Co. set a $45.00 price objective on Invesco and gave the stock a “buy” rating in a report on Monday, January 8th. Citigroup upped their price objective on Invesco from $38.50 to $39.50 and gave the stock a “buy” rating in a report on Tuesday, October 3rd. Finally, Jefferies Group upped their price objective on Invesco from $41.00 to $42.00 and gave the stock a “buy” rating in a report on Friday, November 3rd. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating and seven have given a buy rating to the stock. The stock presently has a consensus rating of “Hold” and an average target price of $39.79.

Invesco (NYSE IVZ) traded up $0.27 on Monday, reaching $38.13. The company’s stock had a trading volume of 2,457,584 shares, compared to its average volume of 2,997,462. The firm has a market capitalization of $15,520.00, a price-to-earnings ratio of 16.51, a price-to-earnings-growth ratio of 1.03 and a beta of 1.80. Invesco has a 52 week low of $28.75 and a 52 week high of $38.42. The company has a debt-to-equity ratio of 0.75, a quick ratio of 1.50 and a current ratio of 1.50.

Invesco (NYSE:IVZ) last released its quarterly earnings results on Thursday, October 26th. The asset manager reported $0.71 EPS for the quarter, topping the consensus estimate of $0.66 by $0.05. The company had revenue of $976.60 million for the quarter, compared to analyst estimates of $940.96 million. Invesco had a return on equity of 13.02% and a net margin of 18.99%. The firm’s revenue was up 14.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.60 earnings per share. sell-side analysts predict that Invesco will post 2.67 earnings per share for the current fiscal year.

In other news, insider Colin Meadows sold 54,215 shares of the company’s stock in a transaction on Tuesday, October 31st. The stock was sold at an average price of $36.01, for a total value of $1,952,282.15. Following the sale, the insider now directly owns 164,420 shares in the company, valued at $5,920,764.20. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 1.80% of the stock is owned by corporate insiders.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Flinton Capital Management LLC lifted its position in Invesco by 0.8% during the second quarter. Flinton Capital Management LLC now owns 10,368 shares of the asset manager’s stock worth $365,000 after buying an additional 80 shares during the period. Riverhead Capital Management LLC increased its stake in Invesco by 1.3% during the second quarter. Riverhead Capital Management LLC now owns 11,593 shares of the asset manager’s stock worth $408,000 after acquiring an additional 144 shares during the last quarter. Cubist Systematic Strategies LLC increased its stake in Invesco by 0.3% during the second quarter. Cubist Systematic Strategies LLC now owns 61,079 shares of the asset manager’s stock worth $2,149,000 after acquiring an additional 202 shares during the last quarter. Veritable L.P. increased its stake in Invesco by 1.9% during the second quarter. Veritable L.P. now owns 11,997 shares of the asset manager’s stock worth $422,000 after acquiring an additional 219 shares during the last quarter. Finally, Sentry Investment Management LLC increased its stake in Invesco by 0.9% during the second quarter. Sentry Investment Management LLC now owns 25,726 shares of the asset manager’s stock worth $905,000 after acquiring an additional 229 shares during the last quarter. Hedge funds and other institutional investors own 81.31% of the company’s stock.

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About Invesco

Invesco Ltd. (Invesco) is an independent investment management company. The Company provides a range of investment capabilities and outcomes, which are delivered through a set of investment vehicles, to help clients achieve their investment objectives. It has a presence in the retail and institutional markets within the investment management industry in North America; Europe, Middle East and Africa (EMEA), and Asia-Pacific.

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