Citizens JMP reiterates Market Perform rating on Invesco Mortgage stock

Investing.com - Citizens JMP has reiterated its Market Perform rating on Invesco Mortgage Capital (NYSE:IVR), maintaining its neutral stance on the mortgage real estate investment trust. The company, currently valued at $530 million, offers an impressive 16.92% dividend yield and has maintained consistent dividend payments for 17 consecutive years.

The research firm raised its 2025 earnings available for distribution (EAD) estimate for Invesco Mortgage Capital to $2.37 from its previous forecast of $2.25, representing a 5.3% increase in projected earnings.

Citizens JMP also increased its 2026 EAD estimate to $2.61 from $2.30 previously, a more substantial 13.5% upward revision in its longer-term earnings outlook for the company.

For the current quarter ending June 30, 2025, Citizens JMP estimates Invesco Mortgage Capital will report an EAD of $0.54.

The firm justified its Market Perform rating by noting that Invesco Mortgage Capital shares are trading at 0.98 times current estimated book value, which aligns with the Agency MREIT peer median of 0.98 times, suggesting the stock is appropriately valued relative to its peers.

In other recent news, Invesco Mortgage Capital Inc. reported its first-quarter earnings for 2025, revealing a mixed financial performance. The company exceeded expectations for earnings per share (EPS), achieving $0.64 against the projected $0.5813. However, revenue fell short of forecasts, coming in at $18.82 million compared to the anticipated $34.02 million. Invesco Mortgage Capital also announced a quarterly dividend of $0.34 per share, payable on July 25, 2025, to shareholders of record as of July 7, 2025. The company remains optimistic about long-term prospects, expecting improved demand for higher coupon securities later in the year. Additionally, Invesco Mortgage Capital is monitoring monetary policy developments closely, as noted by Chief Investment Officer Brian Norris. The company has not announced any changes in its credit exposure strategy, maintaining a focus on agency mortgage-backed securities. These developments reflect the company’s strategic adjustments in response to current market conditions.

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