Invesco Mortgage Capital: 3 Different Insiders Have Purchased Shares This Month

May.19.14 | About: Invesco Mortgage (IVR)

Summary

3 insiders purchased Invesco Mortgage Capital stock within one month.

The stock was sold by no insiders in the month of intensive purchasing.

2 of these 3 insiders increased their holdings by more than 10%.

Invesco Mortgage Capital (NYSE:IVR), a real estate investment trust, focuses on investing in, financing, and managing residential and commercial mortgage-backed securities and mortgage loans.

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Insider buying during the last 30 days

Here is a table of Invesco Mortgage Capital's insider activity during the last 30 days.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
John Anzalone CIO May 14 4,000 35,157 shares +12.8%
Robson Kuster COO May 8 2,624 17,805 shares +17.3%
Richard King CEO May 8 5,500 74,669 shares +8.0%
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There have been 12,124 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Invesco Mortgage Capital's insider activity by calendar month.

Month Insider buying / shares Insider selling / shares
May 2014 12,124 0
April 2014 0 0
March 2014 9,000 0
February 2014 1,000 0
January 2014 0 0
December 2013 5,000 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 6,500 0
July 2013 0 0
June 2013 0 0
May 2013 7,100 0
April 2013 0 0
March 2013 5,000 0
February 2013 0 0
January 2013 0 0
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There have been 45,724 shares purchased and there have been zero shares sold by insiders since January 2013. The month of May 2014 has seen the most insider buying.

Financials

Invesco Mortgage Capital reported the first-quarter financial results on May 5 with the following highlights:

Revenue $171.1 million
Core earnings $56.9 million
Net loss $75.3 million
Book value $18.53 per share
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The three insiders purchased their shares after these results.

Invesco Mortgage Capital is currently trading below the book value.

Competition

Invesco Mortgage Capital's competitors include Annaly Capital Management (NYSE:NLY) and Capstead Mortgage Corp. (NYSE:CMO). Here is a table comparing these companies.

Company IVR NLY CMO
Market Cap: 2.09B 11.08B 1.24B
Net Income: -27.66M 2.58B 94.40M
PEG (5 yr expected): 1.69 -7.87 0.89
P/B: 0.91 0.95 1.02
Dividend Yield: 11.80% 10.30% 10.50%
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Invesco Mortgage Capital has the lowest P/B ratio among these three companies.

Here is a table of these competitors' insider activities during the last six months.

Company Insider buying / shares Insider selling / shares
NLY 20,406 0
CMO 0 0
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Only Invesco Mortgage Capital has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying Invesco Mortgage Capital, and there have not been any insiders selling Invesco Mortgage Capital during the last 30 days. Two of these three insiders increased their holdings by more than 10%. Invesco Mortgage Capital has an insider ownership of 0.12%.

The three insiders purchased their shares at prices ranging from $16.82 to $16.99. I believe Invesco Mortgage Capital could be a good pick below $16.99 based on the intensive insider buying.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in IVR over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.