Two Harbors Investments (NYSE:TWO) Reaches New 1-Year Low – Time to Sell?

Shares of Two Harbors Investments Corp (NYSE:TWO) reached a new 52-week low on Thursday . The stock traded as low as $9.00 and last traded at $9.68, with a volume of 9972826 shares. The stock had previously closed at $10.68.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the stock. JPMorgan Chase & Co. decreased their price objective on shares of Two Harbors Investments from $13.50 to $12.50 and set a “neutral” rating for the company in a report on Wednesday, February 4th. Zacks Research lowered Two Harbors Investments from a “hold” rating to a “strong sell” rating in a research note on Tuesday, January 27th. UBS Group cut shares of Two Harbors Investments from a “buy” rating to a “neutral” rating and raised their target price for the stock from $11.00 to $14.00 in a report on Friday, January 23rd. Maxim Group downgraded Two Harbors Investments from a “buy” rating to a “hold” rating in a report on Thursday, December 18th. Finally, Weiss Ratings restated a “sell (d)” rating on shares of Two Harbors Investments in a report on Monday, December 29th. Six research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Reduce” and an average target price of $12.88.

Two Harbors Investments Price Performance

The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 1.09. The stock has a market cap of $1.09 billion, a P/E ratio of -2.11 and a beta of 1.19. The company’s fifty day simple moving average is $11.64 and its 200-day simple moving average is $10.52.

Two Harbors Investments (NYSE:TWO) last released its quarterly earnings results on Monday, February 2nd. The real estate investment trust reported $0.26 EPS for the quarter, missing analysts’ consensus estimates of $0.30 by ($0.04). Two Harbors Investments had a negative net margin of 109.90% and a positive return on equity of 12.00%. The firm had revenue of $182.18 million during the quarter, compared to analyst estimates of ($15.44) million. As a group, sell-side analysts forecast that Two Harbors Investments Corp will post 0.81 EPS for the current year.

Two Harbors Investments Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, January 29th. Stockholders of record on Monday, January 5th were paid a dividend of $0.34 per share. This represents a $1.36 annualized dividend and a dividend yield of 13.2%. The ex-dividend date of this dividend was Monday, January 5th. Two Harbors Investments’s dividend payout ratio is -27.81%.

Insider Transactions at Two Harbors Investments

In other Two Harbors Investments news, insider Alecia Hanson sold 10,768 shares of the company’s stock in a transaction dated Friday, December 19th. The shares were sold at an average price of $11.41, for a total transaction of $122,862.88. Following the transaction, the insider directly owned 45,288 shares in the company, valued at approximately $516,736.08. This represents a 19.21% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO William Dellal sold 7,087 shares of the business’s stock in a transaction that occurred on Monday, December 22nd. The stock was sold at an average price of $11.44, for a total transaction of $81,075.28. Following the sale, the chief financial officer directly owned 36,703 shares of the company’s stock, valued at approximately $419,882.32. This trade represents a 16.18% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 129,389 shares of company stock worth $1,483,046 over the last ninety days. 0.70% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Smartleaf Asset Management LLC increased its holdings in Two Harbors Investments by 34.5% in the fourth quarter. Smartleaf Asset Management LLC now owns 3,825 shares of the real estate investment trust’s stock valued at $40,000 after purchasing an additional 981 shares during the last quarter. Amalgamated Bank boosted its stake in Two Harbors Investments by 3.9% during the 3rd quarter. Amalgamated Bank now owns 30,604 shares of the real estate investment trust’s stock worth $302,000 after acquiring an additional 1,158 shares during the last quarter. Intech Investment Management LLC grew its holdings in Two Harbors Investments by 1.4% during the third quarter. Intech Investment Management LLC now owns 85,985 shares of the real estate investment trust’s stock valued at $849,000 after purchasing an additional 1,202 shares during the period. Wealth Enhancement Advisory Services LLC increased its stake in Two Harbors Investments by 11.3% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 12,391 shares of the real estate investment trust’s stock valued at $129,000 after purchasing an additional 1,261 shares in the last quarter. Finally, Osaic Holdings Inc. raised its holdings in Two Harbors Investments by 11.1% in the second quarter. Osaic Holdings Inc. now owns 13,130 shares of the real estate investment trust’s stock worth $142,000 after purchasing an additional 1,309 shares during the period. Institutional investors and hedge funds own 64.19% of the company’s stock.

Two Harbors Investments Company Profile

Two Harbors Investments Corp. is a mortgage real estate investment trust (mREIT) that primarily invests in residential mortgage-backed securities (RMBS) issued or guaranteed by government-sponsored enterprises, as well as non-agency residential mortgage loans, mortgage servicing rights and credit risk transfer securities. The company seeks to generate attractive risk-adjusted returns for its shareholders by employing leverage to enhance net interest income derived from its portfolio of high-quality fixed-income assets.

Headquartered in Minneapolis, Minnesota, Two Harbors operates through a self-managed platform that combines portfolio management, risk-management and securitization expertise.