Invesco Q4 EPS Beats by $0.04 on 6.1% Revenue Growth; $0.21 Dividend
In the third quarter, Foundations Investment Advisors initiated a 21,905-share stake in Invesco, valued at approximately $502,000, as institutional ownership rose to 66.1%. Invesco reported fourth-quarter EPS of $0.62 beating estimates by $0.04 on $1.26 billion revenue (+6.1% y/y) and announced a $0.21 quarterly dividend (3.1% yield).
1. Institutional Investor Activity
Foundations Investment Advisors LLC initiated a new position of 21,905 shares in Invesco Ltd. during the third quarter, representing a commitment of roughly $502,000, according to the firm’s latest Form 13F filing with the SEC. Other notable adjustments included KLP Kapitalforvaltning AS increasing its stake by 700 shares to 97,000 shares valued at $2.23 million, IFP Advisors Inc augmenting its holding by 55.7% to 2,127 shares worth $34,000, Forum Financial Management LP adding 791 shares to reach 17,327 shares valued at $273,000, Russell Investments Group Ltd. boosting its position by 0.8% to 102,584 shares worth $1.62 million, and Poehling Capital Management INC. adding 824 shares for a total stake valued at $4.03 million. Overall, institutional investors now control 66.09% of the company’s shares.
2. Quarterly Earnings Results
Invesco reported quarterly EPS of $0.62, outperforming consensus estimates by $0.04. The firm generated revenue of $1.26 billion, topping analyst forecasts by $20 million and marking a 6.1% year-over-year increase. Net margin remained negative at 6.92%, but return on equity improved to 9.69%. On a year-ago basis, earnings per share rose from $0.52, underscoring ongoing operational leverage and cost management within the asset management business.
3. Dividend Announcement
The board declared a quarterly cash dividend of $0.21 per share, payable March 3 to shareholders of record as of February 13. This distribution implies an annualized dividend of $0.84 and a yield of approximately 3.1%, while the company’s dividend payout ratio stands at -52.5%. The ex-dividend date is February 13.
4. Analyst Ratings and Outlook
Research firms have offered mixed views on Invesco’s near-term prospects. Zacks Research upgraded the stock from Hold to Strong Buy, while Barclays adjusted its rating to Equal Weight and trimmed its target price. JPMorgan Chase & Co. maintained a Neutral stance but raised its target, and TD Cowen assigned the highest price target among recent reports. Consensus across one Strong Buy, five Buy and nine Hold ratings yields an average target of $28.43, reflecting moderate upside potential given current market conditions.