New 52-Week Low Could Prompt More Insider Buying At IVR

In trading on Thursday, shares of Invesco Mortgage Capital Inc. ( IVR) touched a new 52-week low of $15.05/share. That's a $2.78 share price drop, or -15.59% decline from the 52-week high of $17.83 set back on 06/24/2014. Large percentage drops always require that the stock post even larger percentage gains from the low in order to recover the old price point, and for IVR that means the stock would have to gain 18.47% to get back to the 52-week high. For a move like that, Invesco Mortgage Capital Inc. would need fundamental strength at the business level.

Here's a rhetorical question: Who knows more about fundamentals at the business level than the company's own insiders? So let's take a look to see whether any company insiders were taking the other side of the trade as IVR shares were being sold down to this new 52-week low, focusing on the most recent trailing six month period. As summarized by the table below, IVR has seen 4 different instances of insiders buying over the past six months.

START SLIDESHOW:
Ten Bargains You Can Buy Cheaper Than The Insiders Did »

Purchased Insider Title Shares Price/Share Value
02/27/2015 John Anzalone CIO 5,000 $15.98 $79,900.00
02/26/2015 Richard J. King President & CEO 4,300 $15.97 $68,671.00
03/06/2015 Robson Kuster Chief Operating Officer 699 $15.66 $10,943.07
03/06/2015 Richard J. King President & CEO 6,300 $15.70 $98,887.00
03/09/2015 Richard Lee Phegley Jr. Chief Financial Officer 1,300 $15.68 $20,384.00
05/13/2015 Richard J. King President & CEO 3,000 $15.91 $47,730.00

In the short run, while the new 52-week low suggests the stock is at the cheapest price and perhaps therefore the best bargain it has been over the last 52 weeks, the low print also means anyone who has purchased the stock over that timeframe is staring at an unrealized loss. Oftentimes, that factor drives a stock's technical analysis metrics by creating overhead resistance, with investors who bought higher now anxious to reverse their trade once they are back to breakeven. The chart below shows where IVR has traded over the past year, with the 50-day and 200-day moving averages included.

Invesco Mortgage Capital Inc. Moving Averages Chart

Time will tell whether the insider purchases foretell a future rebound for IVR shares, which are presently showing a last trade of $15.05/share, right at the new 52-week low.

If you liked this article you might like

Income-REIT New Residential Investment Looks Worth It

Income-REIT New Residential Investment Looks Worth It

Here Are the Best Bourses for International ETFs in 2017

Here Are the Best Bourses for International ETFs in 2017

3 Stocks With Dividend Yields of More Than 10%

3 Stocks With Dividend Yields of More Than 10%

Invesco Mortgage Capital (IVR) Is Today's Strong On High Volume Stock

Invesco Mortgage Capital (IVR) Is Today's Strong On High Volume Stock

What To Sell: 3 Sell-Rated Dividend Stocks ENLK, WPG, IVR

What To Sell: 3 Sell-Rated Dividend Stocks ENLK, WPG, IVR