Top Buys by Top Brass: CEO King's $295.9K Bet on IVR

03/18/2015 7:00 am EST


When company officers make major buys, it is wise to pay attention, so the staff at examines 4 insider stock purchases made by Richard J. King, CEO of this company in the mortgage securities market.

A company's own top management tends to have the best inside view into the business, so when company officers make major buys, investors are wise to take notice. Presumably, the only reason an insider would take their hard-earned cash and use it to buy stock of their company 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 the ''top brass'' over the trailing six month period, one of which was a total of $295.9K invested across 4 purchases by Richard J. King, CEO at Invesco Mortgage Capital Inc. (IVR).

King Bets Big on IVR:

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King's average cost works out to $15.91/share. In trading on Tuesday, bargain hunters could buy shares of Invesco Mortgage Capital Inc. (IVR) and achieve a cost basis lower than King, with shares changing hands as low as $15.58 per share. Shares of Invesco Mortgage Capital Inc. were changing hands at $15.68 at last check, trading up about 0.4% on Tuesday. The chart below shows the one year performance of IVR shares, versus its 200-day moving average:

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Looking at the chart above, IVR's low point in its 52-week range is $15.10 per share, with $18.00 as the 52-week high point. That compares with a last trade of $15.68.

The current annualized dividend paid by Invesco Mortgage Capital Inc. is $1.80/share, currently paid in quarterly installments and its most recent dividend ex-date was on 12/24/2014. 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. 11.5% annualized yield is likely to continue.

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IVR makes up 4.47% of the Mortgage REIT Income ETF (MORT), which is trading higher by about 0.3% on the day Tuesday.

By the Staff of

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