Two Harbors Investments (NYSE:TWO) Stock Price Down 4.9% – Here’s Why

Two Harbors Investments Corp (NYSE:TWO)’s share price fell 4.9% on Friday . The company traded as low as $11.35 and last traded at $11.3550. 1,158,735 shares were traded during mid-day trading, a decline of 68% from the average session volume of 3,567,116 shares. The stock had previously closed at $11.94.

Wall Street Analysts Forecast Growth

TWO has been the subject of a number of recent analyst reports. Wall Street Zen raised Two Harbors Investments from a “sell” rating to a “hold” rating in a report on Saturday, November 1st. Zacks Research cut shares of Two Harbors Investments from a “hold” rating to a “strong sell” rating in a research note on Tuesday, January 27th. Weiss Ratings restated a “sell (d)” rating on shares of Two Harbors Investments in a research report on Monday, December 29th. UBS Group cut shares of Two Harbors Investments from a “buy” rating to a “neutral” rating and increased their target price for the company from $11.00 to $14.00 in a report on Friday, January 23rd. Finally, Maxim Group lowered Two Harbors Investments from a “buy” rating to a “hold” rating in a research note on Thursday, December 18th. Seven equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Reduce” and a consensus price target of $12.88.

Two Harbors Investments Trading Down 7.5%

The business’s 50-day moving average price is $11.46 and its two-hundred day moving average price is $10.43. The firm has a market cap of $1.15 billion, a price-to-earnings ratio of -2.26 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 issued its quarterly 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 for the quarter, compared to analysts’ expectations of ($15.44) million. Two Harbors Investments had a positive return on equity of 12.00% and a negative net margin of 109.90%. Equities analysts expect that Two Harbors Investments Corp will post 0.81 earnings per share for the current year.

Two Harbors Investments Dividend Announcement

The business also recently disclosed 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. The ex-dividend date of this dividend was Monday, January 5th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 12.3%. Two Harbors Investments’s dividend payout ratio is currently -27.81%.

Insiders Place Their Bets

In other news, CIO Nicholas Letica sold 55,488 shares of the firm’s stock in a transaction dated Friday, December 19th. The stock was sold at an average price of $11.42, for a total value of $633,672.96. Following the transaction, the executive directly owned 166,507 shares in the company, valued at $1,901,509.94. This trade represents a 25.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Robert Rush sold 23,594 shares of the business’s stock in a transaction dated Friday, December 19th. The stock was sold at an average price of $11.43, for a total value of $269,679.42. Following the sale, the insider owned 98,207 shares of the company’s stock, valued at $1,122,506.01. The trade was a 19.37% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 129,389 shares of company stock valued at $1,483,046. 0.70% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Two Harbors Investments

Several institutional investors and hedge funds have recently made changes to their positions in TWO. Simplicity Wealth LLC bought a new stake in Two Harbors Investments during the third quarter worth about $954,000. Wolverine Asset Management LLC raised its position in Two Harbors Investments by 168.5% in the 2nd quarter. Wolverine Asset Management LLC now owns 744,028 shares of the real estate investment trust’s stock valued at $8,013,000 after purchasing an additional 466,957 shares during the last quarter. Algebris UK Ltd. acquired a new position in Two Harbors Investments in the third quarter worth $17,558,000. Y Intercept Hong Kong Ltd grew its holdings in shares of Two Harbors Investments by 593.6% during the second quarter. Y Intercept Hong Kong Ltd now owns 137,674 shares of the real estate investment trust’s stock worth $1,483,000 after purchasing an additional 117,825 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC increased its stake in shares of Two Harbors Investments by 1.7% in the second quarter. Allspring Global Investments Holdings LLC now owns 5,240,983 shares of the real estate investment trust’s stock valued at $57,074,000 after buying an additional 88,518 shares in the last quarter. Institutional investors and hedge funds own 64.19% of the company’s stock.

About Two Harbors Investments

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.