Two Harbors Investments (NYSE:TWO) Trading Down 8% – Here’s Why

Two Harbors Investments Corp (NYSE:TWO)’s stock price dropped 8% during mid-day trading on Wednesday . The company traded as low as $9.89 and last traded at $9.8270. Approximately 604,289 shares changed hands during trading, a decline of 80% from the average daily volume of 3,095,175 shares. The stock had previously closed at $10.68.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on TWO shares. UBS Group cut Two Harbors Investments from a “buy” rating to a “neutral” rating and lifted their price target for the stock from $11.00 to $14.00 in a report on Friday, January 23rd. JPMorgan Chase & Co. dropped their target price on Two Harbors Investments from $13.50 to $12.50 and set a “neutral” rating for the company in a report on Wednesday, February 4th. Maxim Group downgraded shares of Two Harbors Investments from a “buy” rating to a “hold” rating in a research note on Thursday, December 18th. Wall Street Zen upgraded shares of Two Harbors Investments from a “sell” rating to a “hold” rating in a research note on Saturday, November 1st. Finally, Zacks Research downgraded shares of Two Harbors Investments from a “hold” rating to a “strong sell” rating in a report on Tuesday, January 27th. Six research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average price target of $12.88.

Two Harbors Investments Trading Down 2.2%

The stock’s 50 day simple moving average is $11.64 and its two-hundred day simple moving average is $10.52. The stock has a market capitalization of $1.09 billion, a PE ratio of -2.11 and a beta of 1.19. The company has a debt-to-equity ratio of 1.09, a current ratio of 1.09 and a quick ratio of 1.09.

Two Harbors Investments (NYSE:TWO) last posted 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 positive return on equity of 12.00% and a negative net margin of 109.90%.The company had revenue of $182.18 million during the quarter, compared to the consensus estimate of ($15.44) million. On average, sell-side analysts expect that Two Harbors Investments Corp will post 0.81 EPS for the current year.

Two Harbors Investments Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, January 29th. Stockholders of record on Monday, January 5th were given a dividend of $0.34 per share. This represents a $1.36 dividend on an annualized basis 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 currently -27.81%.

Insider Activity at Two Harbors Investments

In other Two Harbors Investments news, insider Rebecca B. Sandberg sold 27,370 shares of the stock in a transaction dated Friday, December 19th. The shares were sold at an average price of $11.43, for a total transaction of $312,839.10. Following the completion of the transaction, the insider owned 156,718 shares in the company, valued at $1,791,286.74. This trade represents a 14.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO William Dellal sold 7,087 shares of the business’s stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $11.44, for a total transaction of $81,075.28. Following the completion of the sale, the chief financial officer directly owned 36,703 shares in the company, valued at approximately $419,882.32. This trade represents a 16.18% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 129,389 shares of company stock worth $1,483,046 in the last three months. Corporate insiders own 0.70% of the company’s stock.

Institutional Investors Weigh In On Two Harbors Investments

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Mowery & Schoenfeld Wealth Management LLC bought a new position in shares of Two Harbors Investments in the third quarter valued at approximately $25,000. Quarry LP lifted its stake in Two Harbors Investments by 695.6% in the 3rd quarter. Quarry LP now owns 3,421 shares of the real estate investment trust’s stock worth $34,000 after purchasing an additional 2,991 shares in the last quarter. AlphaQuest LLC lifted its stake in Two Harbors Investments by 240.4% in the 2nd quarter. AlphaQuest LLC now owns 3,370 shares of the real estate investment trust’s stock worth $36,000 after purchasing an additional 2,380 shares in the last quarter. Smartleaf Asset Management LLC boosted its holdings in Two Harbors Investments by 34.5% in the 4th 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 period. Finally, Advisory Services Network LLC purchased a new position in shares of Two Harbors Investments during the 3rd quarter valued at $42,000. 64.19% of the stock is currently owned by institutional investors.

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.