Invesco (NYSE: IVZ) received an upgrade to a “buy” rating from Wall Street Zen, reflecting a positive outlook for the asset management firm. The upgrade, which was communicated to investors on Saturday, follows a series of other adjustments by various financial analysts that indicate growing confidence in Invesco’s market performance.
Several financial institutions have recently revised their price targets for Invesco. Notably, Citigroup raised its target from $22.00 to $25.00, while maintaining a “neutral” rating. Bank of America made a similar adjustment, increasing its target from $23.00 to $25.00, also assigning a “neutral” rating. Additionally, Royal Bank of Canada boosted its price target from $23.00 to $25.00 with a “sector perform” rating. Fundamental Research set a more ambitious target of $27.00.
Despite these positive adjustments, Zacks Research downgraded Invesco from a “strong-buy” to a “hold” rating in early December. Currently, five analysts rate Invesco as a “buy,” while thirteen others classify it as a “hold.” Overall, the consensus rating stands at “hold” with an average price target of $24.70, according to data from MarketBeat.
Quarterly Earnings and Dividend Announcement
Invesco released its quarterly earnings data on October 28, 2023, reporting earnings per share of $0.61. This figure surpassed the consensus estimate of $0.44 by $0.17. The company’s revenue for the quarter was $1.19 billion, slightly exceeding analyst expectations of $1.17 billion. Invesco’s net margin stood at 14.15%, with a return on equity of 9.11%. Year-over-year, revenue increased by 7.4% compared to the same quarter last year, when the company reported earnings of $0.44 per share.
Invesco also announced a quarterly dividend of $0.21 per share, which was paid on December 2, 2023. The ex-dividend date was November 14, 2023. This brings the annualized dividend to $0.84, translating to a yield of 2.9%. The company’s dividend payout ratio is currently 57.14%.
Insider Transactions and Institutional Activity
Recent insider trading activity reveals that Director Douglas J. Sharp sold 160,000 shares of Invesco on October 31, 2023, at an average price of $23.56, totaling approximately $3.77 million. Following this transaction, Sharp retains only 192 shares in the company, valued at around $4,523.52. This sale represents a substantial reduction in Sharp’s holdings, with the transaction disclosed in a legal filing with the Securities and Exchange Commission.
Institutional investors have made notable adjustments to their positions in Invesco. Wedmont Private Capital increased its holdings by 2.2% in the fourth quarter, now owning 21,236 shares valued at $588,000. Parallel Advisors LLC boosted its stake by 18.4% in the third quarter, acquiring an additional 472 shares to bring its total to 3,031 shares, worth $70,000. Wealthfront Advisers LLC and CI Investments Inc. also increased their positions, contributing to a broader trend of institutional interest in Invesco. Currently, institutional investors own 66.09% of the company’s stock.
Invesco Ltd., founded in 1935 and based in Atlanta, Georgia, is an independent global investment management firm. The company offers a diverse range of investment strategies and solutions, catering to both individual and institutional clients worldwide. Its product offerings include actively managed equity and fixed-income funds, passive index funds, exchange-traded funds (ETFs), and specialized investment products.
As Invesco continues to adapt to market changes and investor demands, these recent upgrades and positive earnings reports may signal a favorable trajectory for the firm in the upcoming quarters.
