Institutions own 43% of Invesco Mortgage Capital Inc. (NYSE:IVR) shares but individual investors control 57% of the company

editorial-team@simplywallst.com (Simply Wall St)

Thu, Feb 20, 2025, 4:05 AM 4 min read

If you want to know who really controls Invesco Mortgage Capital Inc. (NYSE:IVR), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 57% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Institutions, on the other hand, account for 43% of the company's stockholders. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.

Let's delve deeper into each type of owner of Invesco Mortgage Capital, beginning with the chart below.

Check out our latest analysis for Invesco Mortgage Capital

ownership-breakdown — NYSE:IVR Ownership Breakdown February 20th 2025

What Does The Institutional Ownership Tell Us About Invesco Mortgage Capital?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Invesco Mortgage Capital already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Invesco Mortgage Capital's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth — NYSE:IVR Earnings and Revenue Growth February 20th 2025

Hedge funds don't have many shares in Invesco Mortgage Capital. Our data shows that BlackRock, Inc. is the largest shareholder with 9.2% of shares outstanding. With 5.3% and 3.8% of the shares outstanding respectively, The Vanguard Group, Inc. and Invesco Capital Management LLC are the second and third largest shareholders.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Invesco Mortgage Capital

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own less than 1% of Invesco Mortgage Capital Inc.. It appears that the board holds about US$1.5m worth of stock. This compares to a market capitalization of US$534m. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 57% of Invesco Mortgage Capital shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Invesco Mortgage Capital better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Invesco Mortgage Capital (of which 1 makes us a bit uncomfortable!) you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.