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2 Underperforming Holdings to Reduce

GuruFocus.com
·2 mins read

Shareholders of Invesco Mortgage Capital Inc (NYSE:IVR) and Innoviva Inc (NASDAQ:INVA) have witnessed their stocks underperform the S&P 500 index over the past one-year, three-year and five-year periods.

Furthermore, Wall Street sell-side analysts have issued negative recommendation ratings for these two stocks, which means they expect their share prices to continue to disappoint in the months ahead.


Invesco Mortgage Capital Inc

Shares of the Atlanta, Georgia-based real estate investment trust focusing on residential and commercial mortgage-backed assets have declined 78.5% in the past year, 79% in the past three years and 76% in the past five years through July 2. The stock has underperformed the S&P 500 by 83.2%, 108.2% and 126.7%, respectively.

Invesco Mortgage Capital Inc has cut its quarterly dividend by 96% to 2 cents per common share for the July 28 payment.

Shares were trading at a price of $3.50 per unit at close on July 2 for a market capitalization of $577.38 million and a 52-week range of $1.82 to $18.30.

The 14-day relative strength index of 44 suggests that the stock is still far from oversold levels despite the sharp downturn.

Wall Street sell-side analysts recommend an underweight rating for this stock.

Innoviva Inc

Shares of the Burlingame, California-based biotech developer of treatments for chronic obstructive pulmonary disease and asthma have fallen by almost 1% over the past year, 9.3% over the past three years and 13.5% over the past five years through July 2. The stock has underperformed the S&P 500 by 6%, 38.5% and 64.2%, respectively.

Innoviva Inc stopped paying dividends in 2015.

The stock price was trading at $13.99 per share at close on July 2 for a market capitalization of $1.42 billion and a 52-week range of $7.58 to $15.62.

The 14-day relative strength index of 50 indicates that the stock is still far from oversold levels despite the significant decline in the share price.

Wall Street sell-side analysts recommend a sell rating for this stock.

Disclosure: I have no positions in any securities mentioned in this article.

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This article first appeared on GuruFocus.