Zacks Investment Research upgraded shares of Two Harbors Investments Corp (NYSE:TWO) from a sell rating to a hold rating in a research note published on Thursday, July 13th.
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. “
A number of other equities research analysts have also recently weighed in on the company. Wells Fargo & Company cut Two Harbors Investments Corp from an outperform rating to a market perform rating and set a $9.50 price target on the stock. in a report on Tuesday, April 11th. They noted that the move was a valuation call. Maxim Group reaffirmed a buy rating and set a $10.25 price target on shares of Two Harbors Investments Corp in a report on Wednesday, June 7th. Finally, Credit Suisse Group initiated coverage on Two Harbors Investments Corp in a report on Wednesday, July 5th. They set an outperform rating and a $10.50 price target on the stock. Three research analysts have rated the stock with a hold rating, three have issued a buy rating and one has issued a strong buy rating to the company. The company presently has a consensus rating of Buy and a consensus price target of $9.95.
Two Harbors Investments Corp (NYSE:TWO) traded down 0.50% during mid-day trading on Thursday, reaching $9.99. The company’s stock had a trading volume of 3,392,058 shares. The stock’s 50-day moving average is $9.91 and its 200-day moving average is $9.69. The firm has a market capitalization of $3.49 billion, a PE ratio of 6.52 and a beta of 0.59. Two Harbors Investments Corp has a 12 month low of $7.91 and a 12 month high of $10.54.
Two Harbors Investments Corp (NYSE:TWO) last issued its earnings results on Monday, August 7th. The real estate investment trust reported $0.28 EPS for the quarter, beating the Zacks’ consensus estimate of $0.26 by $0.02. The company had revenue of $117.79 million during the quarter, compared to the consensus estimate of $123.04 million. Two Harbors Investments Corp had a return on equity of 10.26% and a net margin of 72.15%. Two Harbors Investments Corp’s quarterly revenue was up 16.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.22 earnings per share. On average, equities analysts anticipate that Two Harbors Investments Corp will post $1.06 EPS for the current year.
The company also recently announced a quarterly dividend, which was paid on Thursday, July 27th. Investors of record on Friday, June 30th were issued a dividend of $0.26 per share. This is a boost from Two Harbors Investments Corp’s previous quarterly dividend of $0.25. The ex-dividend date was Wednesday, June 28th. This represents a $1.04 annualized dividend and a yield of 10.41%. Two Harbors Investments Corp’s payout ratio is presently 72.73%.
In related news, General Counsel Rebecca B. Sandberg sold 5,566 shares of the business’s stock in a transaction that occurred on Monday, May 15th. The stock was sold at an average price of $9.85, for a total transaction of $54,825.10. Following the sale, the general counsel now owns 179,466 shares of the company’s stock, valued at $1,767,740.10. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Brad Farrell sold 19,663 shares of the business’s stock in a transaction that occurred on Monday, May 15th. The stock was sold at an average price of $9.86, for a total value of $193,877.18. Following the sale, the chief financial officer now directly owns 410,727 shares in the company, valued at approximately $4,049,768.22. The disclosure for this sale can be found here. 1.16% of the stock is owned by insiders.
A number of hedge funds and other institutional investors have recently bought and sold shares of TWO. Sigma Planning Corp raised its position in Two Harbors Investments Corp by 16.6% in the first quarter. Sigma Planning Corp now owns 24,669 shares of the real estate investment trust’s stock valued at $237,000 after buying an additional 3,515 shares during the period. James Investment Research Inc. acquired a new position in Two Harbors Investments Corp during the first quarter valued at about $154,000. Hudson Valley Investment Advisors Inc. ADV raised its position in Two Harbors Investments Corp by 38.8% in the first quarter. Hudson Valley Investment Advisors Inc. ADV now owns 34,700 shares of the real estate investment trust’s stock valued at $333,000 after buying an additional 9,700 shares during the period. Nisa Investment Advisors LLC acquired a new position in Two Harbors Investments Corp during the first quarter valued at about $809,000. Finally, Americafirst Capital Management LLC acquired a new position in Two Harbors Investments Corp during the first quarter valued at about $852,000. Hedge funds and other institutional investors own 71.02% of the company’s stock.
Two Harbors Investments Corp Company Profile
Two Harbors Investment Corp. is a real estate investment trust. The Company is focused on investing in, financing and managing residential mortgage-backed securities (RMBS), mortgage servicing rights (MSR), commercial real estate and other financial assets (collectively known as target assets). Its investment objective is to provide attractive risk-adjusted total return to its stockholders over the long-term, primarily through dividends and secondarily through capital appreciation.
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