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ATLANTA - Invesco Ltd. (NYSE: IVZ), a global investment management firm with a market capitalization of $5.58 billion, has entered into an agreement with Massachusetts Mutual Life Insurance Company (MassMutual) to repurchase $1 billion of its outstanding Series A Preferred Stock. The transaction, which is part of a $4 billion issue and is noncallable until May 2040, will be completed through debt financing and is expected to close in May 2025. According to InvestingPro analysis, Invesco’s stock is currently trading below its Fair Value, presenting a potential opportunity for investors interested in the financial sector.
This repurchase is anticipated to be earnings accretive for Invesco starting in the second half of 2025, improving the company’s leverage profile and balance sheet flexibility. Invesco also plans to continue investing in growth initiatives and returning capital to shareholders, as evidenced by a recent increase in its quarterly dividend from $0.205 to $0.210 per share. InvestingPro data shows the company has maintained dividend payments for 19 consecutive years, currently offering a substantial 6.58% dividend yield. The company’s P/E ratio of 10.48 and consistent profitability over the last twelve months further support its commitment to shareholder value.
MassMutual, which retains approximately 18.2% ownership of Invesco’s common shares, remains a significant shareholder and strategic partner. MassMutual has previously made seed and co-investment capital commitments exceeding $3 billion and has sold approximately $9 billion of Invesco-managed assets through its platforms.
In addition, Invesco and Barings, a global asset management subsidiary of MassMutual, have announced a strategic product and distribution partnership targeting the U.S. Wealth market. This collaboration aims to deliver private credit solutions leveraging both firms’ expertise in private and public fixed income markets. MassMutual is set to support the initiative with an initial $650 million investment to enhance the partnership’s wealth management product offerings.
The partnership is expected to expand over time, focusing on multi-strategy credit solutions across various investment vehicles to meet clients’ income needs. This strategic move is part of Invesco’s ongoing efforts to strengthen its balance sheet and deliver new investment solutions to clients, enhancing its market position without hindering its ability to invest in business growth. For a deeper understanding of Invesco’s financial health and growth prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro, which provides detailed insights into the company’s valuation, financial metrics, and future outlook.
The information in this article is based on a press release statement from Invesco Ltd.
In other recent news, Invesco Ltd. reported a 2.3% decrease in its assets under management (AUM) for March 2025, with AUM standing at $1,844.8 billion, down from $1,888.6 billion in February. Despite this, the company saw net long-term inflows of $6.5 billion, although these were offset by non-management fee earning net outflows and unfavorable market returns. Invesco’s Q4 2024 earnings per share (EPS) of $0.52 surpassed expectations, while revenues matched forecasts at $1.16 billion. This performance contributed to a 16% year-over-year increase in total AUM to $1.85 trillion, driven by growth in ETFs and private markets.
Analysts at TD Cowen maintained a Buy rating on Invesco shares with a price target of $22.00, citing positive signals in the company’s fundamentals such as improved flows and operating leverage. They also noted the potential for Invesco’s adjusted operating margin to rise, despite a temporary dip in the fee rate. Invesco’s CEO highlighted strategic initiatives and market adaptability as key drivers of the company’s success in 2024, with expectations for operating margin expansion in 2025. The company plans to focus on organic growth opportunities and potential partnerships for inorganic growth.
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