The directors of a company tend to have a unique inside view into the business, so when directors make major buys, investors are wise to take notice. Presumably the only reason a director of a company would choose to take their hard-earned cash and use it to buy stock in the open market, is that they expect to make money - maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. So in this series we look at the largest insider buys by company directors over the trailing six month period, one of which was a total of $988K by Dennis P. Lockhart, Director at Invesco Mortgage Capital Inc (Symbol: IVR).
Dennis P. Lockhart
Lockhart's average cost works out to $16.00/share. In trading on Wednesday, bargain hunters could buy shares of Invesco Mortgage Capital Inc (Symbol: IVR) and achieve a cost basis lower than Lockhart, with shares changing hands as low as $15.94 per share. It should be noted that Lockhart has collected $0.42/share in dividends since the time of their purchase, so they are currently up 2.2% on their purchase from a total return basis. Shares of Invesco Mortgage Capital Inc were changing hands at $15.94 at last check, trading down about 0.5% on Wednesday. The chart below shows the one year performance of IVR shares, versus its 200 day moving average:
Looking at the chart above, IVR's low point in its 52 week range is $15.15 per share, with $18.86 as the 52 week high point - that compares with a last trade of $15.94.
The current annualized dividend paid by Invesco Mortgage Capital Inc is $1.68/share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of 06/04/2018. Below is a long-term dividend history chart for IVR, which can be of good help in judging whether the most recent dividend with approx. 10.5% annualized yield is likely to continue.
According to the ETF Finder at ETF Channel, IVR makes up 4.32% of the Mortgage REIT Income ETF (Symbol: MORT) which is trading lower by about 0.1% on the day Wednesday.