Invesco Municipal Income Trust Reports Major Drop in Short Interest

Invesco Municipal Income Trust (NYSE: VKQ) experienced a significant decline in short interest throughout December 2023. As of December 31, the short interest stood at 46,982 shares, a striking decrease of 47.3% from the mid-month total of 89,232 shares. With an average daily trading volume of 239,036 shares, the current days-to-cover ratio is approximately 0.2 days, indicating that only about 0.1% of the company’s shares are currently sold short.

The stock performance of Invesco Municipal Income Trust showed modest activity, with shares trading up by $0.01 to reach $9.77 during mid-day trading on Friday. A total of 143,823 shares changed hands, surpassing the average volume of 189,320 for the investment management company. Over the past year, the stock has fluctuated, recording a low of $8.86 and a high of $10.18. The fifty-day simple moving average is currently $9.65, while the two-hundred-day simple moving average sits at $9.47.

Dividend Announcement and Institutional Investments

Invesco Municipal Income Trust also declared a monthly dividend, set to be paid on January 30, 2024. Shareholders on record as of January 15 will receive a dividend of $0.0628 per share, which translates to an annualized yield of 7.7%. The ex-dividend date is also January 15, providing a key date for investors looking to benefit from this income opportunity.

Several institutional investors have recently adjusted their holdings in Invesco Municipal Income Trust. Notably, Guggenheim Capital LLC increased its stake by 3.1% during the second quarter, now owning 1,201,076 shares valued at approximately $10.99 million after acquiring an additional 36,134 shares. Similarly, Van ECK Associates Corp raised its investment by 4.9% in the third quarter, bringing its total to 357,403 shares valued at about $3.45 million.

Raymond James Financial Inc. saw a substantial increase of 27.4% in its position during the same period, now holding 259,246 shares worth around $2.50 million after buying an additional 55,702 shares. Bank of America Corp DE also expanded its stake by 16.2%, resulting in ownership of 184,530 shares valued at $1.78 million. Moreover, Smith Moore & CO. boosted its holdings by an impressive 59.4%, acquiring an additional 61,742 shares and bringing its total to 165,652 shares valued at approximately $1.60 million. Institutional investors collectively own 32.00% of Invesco Municipal Income Trust.

Company Overview

Invesco Municipal Income Trust is a closed-end management investment company dedicated to providing shareholders with a high level of current income that is exempt from federal income tax. The fund primarily invests in municipal securities, including general obligation and revenue bonds issued by U.S. states, municipalities, counties, and territories. This tax-advantaged vehicle offers investors access to the municipal bond market through a diversified portfolio managed by experienced fixed income professionals. Generally, the trust allocates at least 80% of its assets to investment-grade municipal securities, with the option to invest in lower-rated obligations when deemed suitable by its management team.