Investment firm JPMorgan Chase & Co. has raised its price target for Invesco Ltd. (NYSE: IVZ) from $27.00 to $30.00, according to a report published on Tuesday, October 31, 2023. This adjustment comes as part of a broader reassessment of the asset management firm’s stock, which currently holds a neutral rating from JPMorgan.
Several other prominent financial institutions have also updated their outlook on Invesco in recent weeks. Morgan Stanley lifted its price target from $27.00 to $28.00 and maintained an “equal weight” rating on December 17, 2023. Similarly, Deutsche Bank Aktiengesellschaft raised its rating from “hold” to “buy,” increasing its price objective from $26.00 to $31.00. Furthermore, Wall Street Zen upgraded Invesco from a “hold” to a “buy” on January 10, 2024. In contrast, Zacks Research downgraded the stock from “strong-buy” to “hold” on December 5, 2023.
Overall, five investment analysts have rated Invesco with a “buy” rating while twelve have assigned a “hold” rating. According to data from MarketBeat, the asset manager currently has a consensus rating of “hold” with an average target price of $26.36.
Strong Quarterly Results Boost Investor Sentiment
Invesco recently reported its quarterly earnings on October 28, 2023, revealing earnings per share (EPS) of $0.61. This figure exceeded analysts’ consensus estimates of $0.44 by $0.17. The company’s revenue for the quarter was $1.19 billion, surpassing the expected $1.17 billion. Invesco recorded a net margin of 14.15% and a return on equity of 9.11%, showcasing its robust financial performance. Year-over-year, revenue increased by 7.4%. Last year during the same quarter, Invesco had an EPS of $0.44.
Looking ahead, sell-side analysts anticipate that Invesco will report earnings of $1.87 per share for the current fiscal year.
Dividend Announcements and Insider Trading
Invesco also announced a quarterly dividend of $0.21 per share, which was paid on December 2, 2023. This dividend represents an annualized payout of $0.84, yielding 2.9%. The company’s current payout ratio stands at 57.14%.
In related news, 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 retained only 192 shares, valued at about $4,523.52, marking a significant reduction in his stake.
Additionally, several hedge funds have altered their positions in Invesco. Capital A Wealth Management LLC significantly increased its holdings by 4,802.9% during the second quarter, acquiring an additional 1,633 shares, bringing their total to 1,667 shares valued at $26,000. Other firms, including CNB Bank and Root Financial Partners LLC, also purchased new stakes in the company during the third quarter, each valued around $30,000.
As of now, institutional investors and hedge funds collectively hold 66.09% of Invesco’s stock.
About Invesco: Founded in 1935, Invesco Ltd. is a global investment management firm headquartered in Atlanta, Georgia. The company offers a diverse range of investment strategies and solutions for both individual and institutional clients worldwide. Its product lineup includes actively managed equity and fixed income funds, passive index funds, exchange-traded funds (ETFs), and specialized offerings such as private markets and structured products.
