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Atlanta, Georgia-based Invesco Ltd. (IVZ) is a publicly owned investment manager with a market cap of $9.9 billion. The company manages separate client-focused equity and fixed income portfolios and also launches equity, commodity, fixed income, multi-asset, and balanced mutual funds for its clients.
Companies worth $2 billion or more are typically classified as “mid-cap stocks,” and Invesco fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the asset management industry. The company is particularly renowned for its leadership in exchange-traded funds (ETFs), ranking among the top providers globally. It operates with a client-centric approach, emphasizing a culture of inclusivity and collaboration, guided by principles such as "One Team," "Culture matters," and "Focused execution.”
This asset management company is currently trading 3.5% below its 52-week high of $22.99, reached on Sep. 23. Shares of IVZ have rallied 45.1% over the past three months, considerably outperforming the Dow Jones Industrial Average’s ($DOWI) 7% rise during the same time frame.
In the longer term, Invesco has soared 26.4% over the past 52 weeks, outpacing DOWI's 9.3% uptick over the same time period. Moreover, on a YTD basis, shares of IVZ are up 26.9%, compared to DOWI’s 8.4% rise.
To confirm its bullish trend, IVZ has been trading above its 200-day moving average since early July, and has remained above its 50-day moving average since early May.
Shares of Invesco surged 5.2% after its Q2 earnings release on Jul. 22. The company’s net revenue improved 1.7% year-over-year to $1.1 billion, primarily driven by higher investment management fees. Moreover, due to strong net inflows, its ending AUM reached a record high of $2 trillion, representing a notable 16.6% rise from the same period last year. However, its adjusted EPS of $0.36 dropped 16.3% from the year-ago quarter, missing consensus estimates by 12.2%.
IVZ has also outpaced its rival, BlackRock, Inc. (BLK), which gained 19.8% over the past 52 weeks and 10% on a YTD basis.
Despite IVZ’s recent outperformance, analysts remain cautious about its prospects. The stock has a consensus rating of "Hold" from the 15 analysts covering it, and the mean price target of $23.50 suggests a 6% premium to its current price levels.
