Invesco (IVZ) Cut to “Strong Sell” at Zacks Investment Research

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Zacks Investment Research lowered shares of Invesco (NYSE:IVZ) from a hold rating to a strong sell rating in a research note published on Tuesday.

According to Zacks, “Shares of Invesco have significantly underperformed the industry over the past year. The company’s earnings have surpassed the Zacks Consensus Estimate in only one of the trailing four quarters. Earnings estimates have been going downward ahead of the company’s fourth quarter results. The company's operating expenses are expected to continue increasing in the quarters ahead, mainly due to its inorganic growth strategy and investment in franchise. Although, improving assets under management (AUM) are likely to support growth, high debt levels and the presence of various intangible assets on the company's balance sheet remain major concerns.”

IVZ has been the subject of a number of other research reports. JPMorgan Chase & Co. set a $29.00 target price on Invesco and gave the company a buy rating in a report on Monday, September 24th. Deutsche Bank reduced their target price on Invesco from $27.00 to $25.00 and set a buy rating for the company in a report on Friday, November 16th. Barclays reduced their target price on Invesco from $29.00 to $25.00 and set an overweight rating for the company in a report on Friday, October 19th. Royal Bank of Canada reaffirmed a buy rating and set a $30.00 target price on shares of Invesco in a report on Friday, October 19th. Finally, Morgan Stanley reduced their target price on Invesco from $28.00 to $22.00 and set a hold rating for the company in a report on Wednesday, November 14th. Two investment analysts have rated the stock with a sell rating, seven have issued a hold rating and three have assigned a buy rating to the company’s stock. Invesco currently has an average rating of Hold and a consensus target price of $25.73.

IVZ stock traded down $0.14 during mid-day trading on Tuesday, reaching $17.41. 299,054 shares of the company traded hands, compared to its average volume of 4,745,715. The company has a quick ratio of 1.55, a current ratio of 1.55 and a debt-to-equity ratio of 0.82. The firm has a market capitalization of $7.12 billion, a PE ratio of 6.45, a PEG ratio of 0.85 and a beta of 1.53. Invesco has a 52-week low of $15.38 and a 52-week high of $38.43.

Invesco (NYSE:IVZ) last posted its earnings results on Thursday, October 18th. The asset manager reported $0.66 earnings per share for the quarter, meeting the Zacks’ consensus estimate of $0.66. The business had revenue of $966.90 million during the quarter, compared to analyst estimates of $972.49 million. Invesco had a return on equity of 12.25% and a net margin of 21.66%. The company’s quarterly revenue was down 1.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.71 EPS. On average, equities research analysts anticipate that Invesco will post 2.61 EPS for the current fiscal year.

Hedge funds have recently modified their holdings of the stock. OppenheimerFunds Inc. grew its stake in shares of Invesco by 15.7% in the second quarter. OppenheimerFunds Inc. now owns 24,443 shares of the asset manager’s stock worth $649,000 after acquiring an additional 3,308 shares during the last quarter. Nelson Roberts Investment Advisors LLC grew its stake in shares of Invesco by 3.2% in the third quarter. Nelson Roberts Investment Advisors LLC now owns 200,272 shares of the asset manager’s stock worth $4,582,000 after acquiring an additional 6,145 shares during the last quarter. Cambridge Investment Research Advisors Inc. grew its stake in shares of Invesco by 27.5% in the third quarter. Cambridge Investment Research Advisors Inc. now owns 28,853 shares of the asset manager’s stock worth $660,000 after acquiring an additional 6,224 shares during the last quarter. Kiltearn Partners LLP grew its stake in shares of Invesco by 18.9% in the third quarter. Kiltearn Partners LLP now owns 8,758,297 shares of the asset manager’s stock worth $200,390,000 after acquiring an additional 1,393,287 shares during the last quarter. Finally, Financial Counselors Inc. grew its stake in shares of Invesco by 15.0% in the third quarter. Financial Counselors Inc. now owns 319,878 shares of the asset manager’s stock worth $7,319,000 after acquiring an additional 41,676 shares during the last quarter. 79.73% of the stock is currently owned by institutional investors.

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.

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