Invesco’s Jan. Assets Rise On Favorable Inflows, Market Returns; Shares Gain

Invesco said that its preliminary assets under management (AUM) during the month ended Jan. 31 rose 1.3% to $1.37 trillion from the prior month, boosted by favorable market returns and positive inflows.

Invesco (IVZ) recorded total net inflows of $14.3 billion. Foreign exchange movements grew AUM by $0.6 billion. Shares of the Hamilton-based investment manager increased 2.2% in early morning trading.

The company’s equity AUM remained stable at $689.5 billion versus the prior month. Money market AUM gained 5.3% to $114.3 billion. Alternatives AUM grew nearly 1% to $178.2 billion, while fixed income AUM rose 1.4%.

On Jan. 26, the company reported 4Q results. Invesco’s 4Q adjusted earnings climbed 12.5% year-over-year to $0.72 per share and outpaced Street estimates of $0.55. Adjusted revenues decreased 3.1% to $1.23 billion but exceeded analysts’ expectations of $1.13 billion. (See Invesco stock analysis on TipRanks)

Following the earnings results, BMO Capital analyst James Fotheringham lifted the stock’s price target from $19 to $22 but maintained a Hold rating. In a note to investors, the analyst wrote that, “the company’s higher performance fees and gains from seed investments drove its Q4 earnings beat.”

Fotheringham expects Invesco’s “improving net flows, positive operating leverage, and expense savings to continue.”

In line with Fotheringham’s outlook, the Street’s consensus rating on the stock is a Hold. That’s based on 6 Holds, 2 Buys and 3 Sells. The average price target stands at $21.45 and implies downside potential of about 7.3% to current levels. Shares have appreciated about 32.3% over the past year.

TipRanks’ Hedge Fund Trading Activity tool shows that confidence in IVZ is currently Very Positive as 4 hedge funds increased their cumulative holdings of the stock by 37 million shares in the last quarter.

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