Two Harbors Investments (NYSE:TWO) Hits New 12-Month Low – Time to Sell?

Two Harbors Investments Corp (NYSE:TWO)’s share price hit a new 52-week low during trading on Thursday . The stock traded as low as $12.03 and last traded at $12.0450, with a volume of 64648 shares changing hands. The stock had previously closed at $12.03.

Analyst Ratings Changes

Several analysts have recently weighed in on the company. JPMorgan Chase & Co. lifted their target price on Two Harbors Investments from $11.00 to $12.00 and gave the stock an “underweight” rating in a research report on Friday, July 17th. Compass Point restated a “neutral” rating and issued a $13.00 price target on shares of Two Harbors Investments in a report on Tuesday, June 9th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Two Harbors Investments in a research note on Friday, July 24th. Zacks Research raised shares of Two Harbors Investments from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, July 21st. Finally, Royal Bank Of Canada lifted their price objective on shares of Two Harbors Investments from $11.00 to $12.00 and gave the company a “sector perform” rating in a report on Monday, July 27th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $12.75.

Two Harbors Investments Stock Performance

The company has a market cap of $1.27 billion, a P/E ratio of -16.28 and a beta of 1.04. The firm has a 50 day moving average of $12.22 and a 200-day moving average of $11.69. The company has a quick ratio of 1.08, a current ratio of 1.08 and a debt-to-equity ratio of 0.85.

Two Harbors Investments (NYSE:TWO) last released its quarterly earnings data on Tuesday, July 28th. The real estate investment trust reported $0.28 EPS for the quarter, hitting the consensus estimate of $0.28. The company had revenue of $247.57 million for the quarter, compared to the consensus estimate of $9.45 million. Two Harbors Investments had a positive return on equity of 12.79% and a negative net margin of 6.09%. As a group, sell-side analysts anticipate that Two Harbors Investments Corp will post 0.89 EPS for the current fiscal year.

Two Harbors Investments Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Thursday, July 2nd were given a dividend of $0.34 per share. The ex-dividend date of this dividend was Thursday, July 2nd. This represents a $1.36 dividend on an annualized basis and a dividend yield of 11.3%. Two Harbors Investments’s dividend payout ratio is presently -66.22%.

Institutional Trading of Two Harbors Investments

A number of hedge funds have recently added to or reduced their stakes in TWO. Smartleaf Asset Management LLC raised its position in Two Harbors Investments by 34.5% during 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 acquiring an additional 981 shares in the last quarter. Wealth Enhancement Advisory Services LLC lifted its holdings 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 acquiring an additional 1,261 shares during the period. Osaic Holdings Inc. boosted its position in Two Harbors Investments by 11.1% in the 2nd 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 in the last quarter. Janney Montgomery Scott LLC boosted its position in Two Harbors Investments by 12.2% in the 4th quarter. Janney Montgomery Scott LLC now owns 15,317 shares of the real estate investment trust’s stock worth $161,000 after purchasing an additional 1,663 shares in the last quarter. Finally, GAMMA Investing LLC grew its stake in shares of Two Harbors Investments by 37.8% during the 2nd quarter. GAMMA Investing LLC now owns 7,162 shares of the real estate investment trust’s stock worth $89,000 after purchasing an additional 1,964 shares during the period. 64.19% of the stock is owned by hedge funds and other 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.