Invesco Experiences Surge in Options Trading Activity

Invesco Ltd. (NYSE:IVZ - Get Free Report) experienced a significant uptick in options trading activity recently. On Tuesday, investors purchased a remarkable 16,806 call options for the stock, which marks an astounding increase of approximately 435% compared to the usual trading volume of about 3,141 call options.

Invesco Stock Performance

On the same day, shares of Invesco traded up by $1.32, reaching $19.07. The trading volume was also notable, with 6,150,405 shares changing hands, far surpassing the average volume of 3,667,403 shares. The company's fifty-day simple moving average currently stands at $17.60, while the two-hundred-day simple moving average is $17.25. Invesco has a debt-to-equity ratio of 0.66, indicating a manageable level of debt relative to equity. Additionally, the company's current and quick ratios are both at 4.91, suggesting strong liquidity. Over the past year, Invesco's stock has seen a low of $14.16 and a high of $19.49, with a market capitalization of approximately $8.57 billion. The price-to-earnings ratio is listed at -20.79, and the price-to-earnings-growth ratio is at 1.06 with a beta of 1.43, indicating the stock's volatility compared to the market.

Recent Earnings Report

Invesco's latest quarterly earnings report was released on January 28th, where it posted an earnings per share (EPS) of $0.52, narrowly beating the Wall Street consensus estimate of $0.51 by a slight margin of $0.01. The asset manager faced challenges with a negative net margin of 3.00%, although it achieved a return on equity of 8.83%. Analysts have forecasted an expected EPS of about 1.7 for the current year.

Dividend Announcement

The company has also announced a quarterly dividend, which is scheduled to be paid on March 4th. Stockholders on record as of February 14th will receive a dividend of $0.205 per share. This dividend translates to an annualized figure of $0.82 and provides a yield of 4.30%. However, it's worth noting that Invesco's dividend payout ratio (DPR) is notably high at -89.13%, suggesting that the company is paying out more than its earnings.

Analysts' Ratings and Recommendations

A number of analyst ratings have emerged regarding Invesco. Wells Fargo & Company lowered their price target from $17.50 to $17.00, assigning the stock an "underweight" rating. The Goldman Sachs Group adjusted its price target from $19.25 to $19.00, opting for a "neutral" rating. Similarly, Barclays reduced its price target from $19.00 to $18.00 while maintaining an "equal weight" rating. On the flip side, StockNews.com upgraded Invesco from a "sell" rating to a "hold" rating. Royal Bank of Canada began coverage on Invesco with a "sector perform" rating and set a price target of $19.00. Overall, one analyst has given a sell rating, eleven have advised holding the stock, and one has recommended buying, pointing to an average rating of "Hold" with a target price of around $18.50 according to MarketBeat.

Institutional Investors Involvement

Invesco has seen varied activity from institutional investors recently. Fisher Asset Management LLC has raised its stake in Invesco by 2.0%, owning now 4,540,913 shares valued at approximately $79.73 million. Additionally, Massachusetts Mutual Life Insurance Co. purchased a new stake in Invesco valued at about $1.43 billion during the third quarter. Algert Global LLC and Sumitomo Mitsui DS Asset Management Company Ltd. both acquired new stakes in Invesco as well. Institutional investors and hedge funds now hold around 66.09% of Invesco's total shares.

About Invesco Ltd.

Invesco Ltd. is a publicly traded investment management firm. The company provides a variety of services tailored to different types of clients, including retail clients, institutional clients, high-net-worth individuals, public entities, corporations, unions, non-profits, and sovereign wealth funds.

Final Thoughts

Ultimately, the recent surge in options trading activity for Invesco signals increased investor interest in the stock, which could lead to further volatility in the coming days. As always, investors should do their due diligence and evaluate their own investment strategies carefully.

Invesco, options, trading