According to Zacks, “Two Harbors Investment Corp is a Real Estate Investment Trust that focuses on investing in, financing and managing residential mortgage-backed securities and mortgage loans. Its objective is to provide risk-adjusted returns to investors through dividends and capital appreciation. Two Harbors intends to acquire and manage a portfolio of mortgage-backed securities, focusing on security selection and the relative value of various sectors within the mortgage market. As an investment strategy, the company expects to deploy moderate borrowings through, with respect to Agency RMBS, short-term borrowings structured as repurchase agreements and, with respect to non-Agency RMBS and residential mortgage loans, private funding sources. It may also finance portions of its portfolio through non-recourse term borrowing facilities and equity financing under the Legacy Loan Program and Term Asset-Backed Securities Lending Facility (TALF), if such financing becomes available. “
Several other equities research analysts have also recently weighed in on TWO. JPMorgan Chase & Co. dropped their target price on Two Harbors Investment from $14.50 to $13.50 and set an overweight rating for the company in a report on Wednesday, July 24th. Nomura set a $14.00 target price on Two Harbors Investment and gave the company a hold rating in a report on Wednesday, August 7th. ValuEngine upgraded Two Harbors Investment from a sell rating to a hold rating in a report on Friday, August 23rd. Raymond James set a $15.00 price objective on Two Harbors Investment and gave the stock a buy rating in a report on Wednesday, August 21st. Finally, Royal Bank of Canada began coverage on Two Harbors Investment in a report on Wednesday, October 2nd. They issued an outperform rating and a $15.00 price objective for the company. One analyst has rated the stock with a sell rating, three have given a hold rating and six have given a buy rating to the company. Two Harbors Investment has a consensus rating of Buy and an average price target of $14.83.
Shares of TWO stock opened at $13.54 on Friday. The stock has a market capitalization of $3.68 billion, a PE ratio of 6.87 and a beta of 0.63. Two Harbors Investment has a 1-year low of $12.06 and a 1-year high of $14.86. The business has a 50-day moving average of $13.21 and a 200 day moving average of $13.16. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.12 and a quick ratio of 1.12.
Two Harbors Investment (NYSE:TWO) last issued its earnings results on Tuesday, August 6th. The real estate investment trust reported $0.39 earnings per share for the quarter, missing the consensus estimate of $0.42 by ($0.03). The company had revenue of $68.59 million for the quarter, compared to analysts’ expectations of $63.20 million. Two Harbors Investment had a negative net margin of 57.33% and a positive return on equity of 13.49%. During the same quarter in the prior year, the company earned $0.49 earnings per share. Analysts anticipate that Two Harbors Investment will post 1.64 EPS for the current year.
The company also recently announced a quarterly dividend, which will be paid on Monday, October 28th. Stockholders of record on Monday, September 30th will be paid a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 11.82%. The ex-dividend date of this dividend is Friday, September 27th. Two Harbors Investment’s payout ratio is presently 81.22%.
In other news, CEO Thomas Siering bought 5,000 shares of the stock in a transaction dated Wednesday, August 14th. The stock was bought at an average price of $13.11 per share, for a total transaction of $65,550.00. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Karen Hammond bought 5,600 shares of the stock in a transaction dated Thursday, August 22nd. The stock was purchased at an average price of $13.30 per share, with a total value of $74,480.00. Following the purchase, the director now owns 47,262 shares in the company, valued at $628,584.60. The disclosure for this purchase can be found here. Company insiders own 0.86% of the company’s stock.
Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Northern Trust Corp increased its position in Two Harbors Investment by 3.6% during the 2nd quarter. Northern Trust Corp now owns 1,358,493 shares of the real estate investment trust’s stock valued at $17,214,000 after buying an additional 47,064 shares in the last quarter. Cetera Advisor Networks LLC increased its position in Two Harbors Investment by 9.4% during the 2nd quarter. Cetera Advisor Networks LLC now owns 34,312 shares of the real estate investment trust’s stock valued at $436,000 after buying an additional 2,936 shares in the last quarter. Putnam Investments LLC increased its holdings in shares of Two Harbors Investment by 507.1% in the 2nd quarter. Putnam Investments LLC now owns 317,510 shares of the real estate investment trust’s stock worth $4,023,000 after purchasing an additional 265,207 shares in the last quarter. KAMES CAPITAL plc increased its holdings in shares of Two Harbors Investment by 35.9% in the 2nd quarter. KAMES CAPITAL plc now owns 834,232 shares of the real estate investment trust’s stock worth $10,561,000 after purchasing an additional 220,372 shares in the last quarter. Finally, AGF Investments LLC increased its holdings in shares of Two Harbors Investment by 52.3% in the 2nd quarter. AGF Investments LLC now owns 25,670 shares of the real estate investment trust’s stock worth $325,000 after purchasing an additional 8,816 shares in the last quarter. Institutional investors own 63.13% of the company’s stock.
About Two Harbors Investment
Two Harbors Investment Corp. operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS), non-agency securities, mortgage servicing rights, and other financial assets in the United States. Its target assets include agency RMBS collateralized by fixed rate mortgage loans, adjustable rate mortgage loans, and hybrid adjustable-rate mortgage (ARMs); non-agency securities collateralized by prime mortgage loans, Alt-A mortgage loans, pay-option ARM loans, and subprime mortgage loans; and other assets, such as financial and mortgage-related assets, as well as residential mortgage loans and non-hedging transactions.
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