Two Harbors Investments (NYSE:TWO) Trading 6.1% Higher – What’s Next?

Two Harbors Investments Corp (NYSE:TWO) traded up 6.1% during mid-day trading on Wednesday . The company traded as high as $9.63 and last traded at $9.6940. 718,216 shares traded hands during trading, a decline of 78% from the average session volume of 3,258,582 shares. The stock had previously closed at $9.14.

Analyst Ratings Changes

Several equities research analysts recently weighed in on TWO shares. Maxim Group downgraded shares of Two Harbors Investments from a “buy” rating to a “hold” rating in a research report on Thursday, December 18th. Zacks Research downgraded Two Harbors Investments from a “hold” rating to a “strong sell” rating in a research report on Tuesday, January 27th. JPMorgan Chase & Co. reduced 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 research note on Wednesday, February 4th. Weiss Ratings reissued a “sell (d)” rating on shares of Two Harbors Investments in a report on Monday, December 29th. Finally, UBS Group lowered shares of Two Harbors Investments from a “buy” rating to a “neutral” rating and increased their price objective for the company from $11.00 to $14.00 in a report on Friday, January 23rd. Six research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Reduce” and an average target price of $12.88.

Two Harbors Investments Stock Performance

The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 1.09. The company has a market capitalization of $1.03 billion, a P/E ratio of -2.00 and a beta of 1.18. The business has a 50 day moving average of $11.33 and a 200 day moving average of $10.49.

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

Two Harbors Investments Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, January 29th. Stockholders of record on Monday, January 5th were issued a $0.34 dividend. The ex-dividend date was Monday, January 5th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 13.9%. Two Harbors Investments’s payout ratio is -27.81%.

Insider Activity

In other news, CIO Nicholas Letica sold 55,488 shares of Two Harbors Investments stock in a transaction that occurred on Friday, December 19th. The stock was sold at an average price of $11.42, for a total value of $633,672.96. Following the completion of the transaction, the executive owned 166,507 shares in the company, valued at approximately $1,901,509.94. The trade was a 25.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Rebecca B. Sandberg sold 27,370 shares of the business’s stock in a transaction that occurred on Friday, December 19th. The shares were sold at an average price of $11.43, for a total value of $312,839.10. Following the transaction, the insider directly owned 156,718 shares in the company, valued at approximately $1,791,286.74. This represents a 14.87% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 129,389 shares of company stock worth $1,483,046. 0.61% of the stock is owned by insiders.

Institutional Trading of Two Harbors Investments

A number of institutional investors have recently bought and sold shares of the stock. Millennium Management LLC increased its position in Two Harbors Investments by 45.3% during the third quarter. Millennium Management LLC now owns 4,535,534 shares of the real estate investment trust’s stock valued at $44,766,000 after acquiring an additional 1,415,062 shares during the last quarter. Balyasny Asset Management L.P. lifted its holdings in shares of Two Harbors Investments by 490.7% in the 2nd quarter. Balyasny Asset Management L.P. now owns 3,583,939 shares of the real estate investment trust’s stock worth $38,599,000 after acquiring an additional 2,977,196 shares during the last quarter. Invesco Ltd. lifted its holdings in shares of Two Harbors Investments by 44.5% in the 2nd quarter. Invesco Ltd. now owns 2,649,977 shares of the real estate investment trust’s stock worth $28,540,000 after acquiring an additional 815,931 shares during the last quarter. Geode Capital Management LLC boosted its stake in shares of Two Harbors Investments by 0.9% during the 4th quarter. Geode Capital Management LLC now owns 2,485,048 shares of the real estate investment trust’s stock worth $26,098,000 after purchasing an additional 21,212 shares during the period. Finally, Marshall Wace LLP purchased a new position in shares of Two Harbors Investments during the 4th quarter worth about $23,886,000. 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.