Two Harbors Investments (NYSE:TWO) Reaches New 12-Month Low – Here’s Why

Two Harbors Investments Corp (NYSE:TWO)’s stock price hit a new 52-week low during mid-day trading on Thursday . The company traded as low as $9.00 and last traded at $9.68, with a volume of 9972826 shares traded. The stock had previously closed at $10.68.

Analysts Set New Price Targets

TWO has been the topic of several recent analyst reports. UBS Group lowered shares of Two Harbors Investments from a “buy” rating to a “neutral” rating and increased their price objective for the stock from $11.00 to $14.00 in a report on Friday, January 23rd. Weiss Ratings reiterated a “sell (d)” rating on shares of Two Harbors Investments in a report on Monday, December 29th. Wall Street Zen upgraded Two Harbors Investments from a “sell” rating to a “hold” rating in a research note on Saturday, November 1st. JPMorgan Chase & Co. reduced their price objective on Two Harbors Investments from $13.50 to $12.50 and set a “neutral” rating on the stock in a research note on Wednesday, February 4th. Finally, Maxim Group downgraded shares of Two Harbors Investments from a “buy” rating to a “hold” rating in a research report on Thursday, December 18th. Six analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus target price of $12.88.

Two Harbors Investments Trading Down 9.4%

The firm has a market cap of $1.02 billion, a price-to-earnings ratio of -1.98 and a beta of 1.19. 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 business has a 50 day moving average price of $11.67 and a 200-day moving average price of $10.52.

Two Harbors Investments (NYSE:TWO) last issued its quarterly earnings data on Monday, February 2nd. The real estate investment trust reported $0.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.30 by ($0.04). The firm had revenue of $182.18 million during the quarter, compared to analyst estimates of ($15.44) million. Two Harbors Investments had a negative net margin of 109.90% and a positive return on equity of 12.00%. As a group, research analysts expect that Two Harbors Investments Corp will post 0.81 EPS for the current fiscal year.

Two Harbors Investments Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, January 29th. Shareholders 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 yield of 14.0%. Two Harbors Investments’s payout ratio is currently -27.81%.

Insider Activity at Two Harbors Investments

In other Two Harbors Investments news, CIO Nicholas Letica sold 55,488 shares of the firm’s stock in a transaction that occurred on Friday, December 19th. The stock was sold at an average price of $11.42, for a total transaction of $633,672.96. Following the completion of the sale, the executive owned 166,507 shares in the company, valued at $1,901,509.94. This trade represents a 25.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Robert Rush sold 23,594 shares of Two Harbors Investments stock in a transaction that occurred on Friday, December 19th. The stock was sold at an average price of $11.43, for a total value of $269,679.42. Following the sale, the insider owned 98,207 shares in the company, valued at $1,122,506.01. This represents a 19.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 129,389 shares of company stock valued at $1,483,046. 0.70% of the stock is currently owned by insiders.

Institutional Trading of Two Harbors Investments

Hedge funds have recently made changes to their positions in the stock. AQR Capital Management LLC acquired a new stake in Two Harbors Investments in the first quarter valued at $344,000. Millennium Management LLC raised its stake in shares of Two Harbors Investments by 10.6% in the 1st quarter. Millennium Management LLC now owns 1,206,549 shares of the real estate investment trust’s stock valued at $16,119,000 after purchasing an additional 115,698 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of Two Harbors Investments by 24.6% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 144,670 shares of the real estate investment trust’s stock worth $1,933,000 after purchasing an additional 28,535 shares during the last quarter. Intech Investment Management LLC grew its stake in Two Harbors Investments by 54.4% in the first quarter. Intech Investment Management LLC now owns 91,847 shares of the real estate investment trust’s stock worth $1,227,000 after purchasing an additional 32,361 shares in the last quarter. Finally, AlphaQuest LLC raised its stake in Two Harbors Investments by 240.4% during the second quarter. AlphaQuest LLC now owns 3,370 shares of the real estate investment trust’s stock valued at $36,000 after buying an additional 2,380 shares in the last quarter. Institutional investors and hedge funds own 64.19% of the company’s stock.

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.