Trade-Ideas LLC identified Invesco Mortgage Capital ( IVR) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Invesco Mortgage Capital as such a stock due to the following factors:

  • IVR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.7 million.
  • IVR has traded 113,480 shares today.
  • IVR is trading at 2.85 times the normal volume for the stock at this time of day.
  • IVR is trading at a new high 3.02% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on IVR:

Invesco Mortgage Capital Inc., a real estate investment trust, focuses on investing in, financing, and managing residential and commercial mortgage-backed securities and mortgage loans. It invests in residential mortgage-backed securities (RMBS) for which the U.S. The stock currently has a dividend yield of 11.1%. Currently there are 2 analysts that rate Invesco Mortgage Capital a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Invesco Mortgage Capital has been 941,700 shares per day over the past 30 days. Invesco has a market cap of $1.6 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.90 and a short float of 3.6% with 6.16 days to cover. Shares are up 16.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Invesco Mortgage Capital as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and weak operating cash flow.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 1193.0% when compared to the same quarter one year ago, falling from -$11.72 million to -$151.59 million.
  • Net operating cash flow has declined marginally to $78.86 million or 9.79% when compared to the same quarter last year. Despite a decrease in cash flow of 9.79%, INVESCO MORTGAGE CAPITAL INC is still significantly exceeding the industry average of -65.75%.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, INVESCO MORTGAGE CAPITAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for INVESCO MORTGAGE CAPITAL INC is currently very high, coming in at 90.91%. Regardless of IVR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, IVR's net profit margin of -119.32% significantly underperformed when compared to the industry average.
  • The revenue fell significantly faster than the industry average of 10.4%. Since the same quarter one year prior, revenues fell by 26.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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