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Atlanta, Georgia-based Invesco Ltd. (IVZ) operates as an independent investment manager and offers a wide range of investment products and services. With a market cap of $8 billion, Invesco’s clientele includes retail investors, institutions, HNIs, corporations, endowments, pension funds, and more.
Invesco has underperformed the broader market over the past 52 weeks. IVZ stock prices have observed a marginal decline in 2024 and surged 28.2% over the past 52 weeks, compared to the S&P 500 Index’s ($SPX) 20.1% gains in 2024 and 35.2% returns over the past year.
Zooming in further, Invesco has also underperformed the Financial Select Sector SPDR Fund’s (XLF) 23.8% gains in 2024 and 37.7% returns over the past year.
Invesco observed a substantial surge in stock prices in Q4 last year but failed to continue the positive momentum in the starting months of 2024. Invesco has faced pressure on its revenues due to the continued shift in its AUM mix towards lower fee-generating investment products like QQQs and ETFs, driven by broader markets’ shift towards passive investing products which generate lower fee revenues for asset managers.
INV stock experienced a marginal gain after the release of its Q3 earnings on Oct. 22. Despite the pressures on its topline, Invesco reported a robust 5.1% year-over-year growth in total operating revenues, reaching $1.5 billion. It also reported a 1.8% growth in adjusted EPS to $0.44 compared to the year-ago quarter, matching analysts' earnings estimates.
For the current fiscal year, ending in December, analysts expect Invesco to report an 11.9% year-over-year growth in adjusted EPS to $1.69. The company’s earnings surprise history is mixed. It has surpassed or matched analysts’ earnings estimates in three of the past four quarters while missing on another occasion.
IVZ stock has a consensus “Hold” rating overall. Among the 16 analysts covering the stock, one advises “Strong Buy,” 14 suggest “Hold,” and one recommends a “Strong Sell” rating.
On Oct. 23, RBC Capital analyst Kenneth Lee maintained a “Sector Perform” rating and raised the price target to $19. The mean price target of $19.07 represents a premium of just 7.3% to current price levels and the Street-high target of $22 suggests a potential upside of 23.7%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
