StockNews.com Upgrades Two Harbors Investment (NYSE:TWO) to “Hold”

StockNews.com upgraded shares of Two Harbors Investment (NYSE:TWO) from a sell rating to a hold rating in a report released on Wednesday.

A number of other equities research analysts have also commented on the company. Compass Point dropped their target price on Two Harbors Investment from $15.75 to $14.75 and set a “buy” rating on the stock in a research report on Monday, November 25th. JMP Securities reaffirmed a “market outperform” rating and set a $14.00 target price on shares of Two Harbors Investment in a report on Thursday, January 23rd. Royal Bank of Canada decreased their price target on Two Harbors Investment from $14.00 to $12.00 and set a “sector perform” rating for the company in a report on Friday, November 1st. Finally, JPMorgan Chase & Co. raised their price objective on shares of Two Harbors Investment from $11.00 to $12.50 and gave the stock a “neutral” rating in a research note on Friday, January 31st. Four research analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $13.79.

Two Harbors Investment Price Performance

Shares of TWO stock opened at $12.90 on Wednesday. The company has a debt-to-equity ratio of 0.84, a current ratio of 1.09 and a quick ratio of 1.07. The company has a market cap of $1.34 billion, a P/E ratio of 6.11 and a beta of 1.84. The stock’s 50-day moving average is $11.86 and its 200 day moving average is $12.63. Two Harbors Investment has a 1-year low of $10.84 and a 1-year high of $14.27.

Two Harbors Investment (NYSE:TWO) last posted its quarterly earnings data on Wednesday, January 29th. The real estate investment trust reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.27 by ($0.07). Two Harbors Investment had a net margin of 66.24% and a return on equity of 6.52%. Research analysts predict that Two Harbors Investment will post 0.82 earnings per share for the current fiscal year.

Two Harbors Investment Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, January 29th. Stockholders of record on Friday, January 3rd were paid a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a dividend yield of 13.96%. The ex-dividend date was Friday, January 3rd. Two Harbors Investment’s payout ratio is 85.31%.

Insider Activity

In other news, insider Rebecca B. Sandberg sold 3,785 shares of the firm’s stock in a transaction that occurred on Friday, January 10th. The stock was sold at an average price of $11.14, for a total value of $42,164.90. Following the transaction, the insider now owns 152,378 shares in the company, valued at $1,697,490.92. This trade represents a 2.42 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CIO Nicholas Letica sold 6,040 shares of the business’s stock in a transaction that occurred on Friday, January 10th. The stock was sold at an average price of $11.13, for a total value of $67,225.20. Following the sale, the executive now owns 174,672 shares of the company’s stock, valued at $1,944,099.36. The trade was a 3.34 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 29,754 shares of company stock worth $333,307 in the last quarter. Corporate insiders own 0.61% of the company’s stock.

Institutional Investors Weigh In On Two Harbors Investment

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. AQR Capital Management LLC acquired a new stake in shares of Two Harbors Investment in the second quarter valued at about $147,000. The Manufacturers Life Insurance Company raised its holdings in Two Harbors Investment by 4.6% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 51,242 shares of the real estate investment trust’s stock valued at $677,000 after acquiring an additional 2,241 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in Two Harbors Investment by 1,680.0% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,225 shares of the real estate investment trust’s stock worth $29,000 after purchasing an additional 2,100 shares in the last quarter. Handelsbanken Fonder AB boosted its holdings in shares of Two Harbors Investment by 12.7% during the 3rd quarter. Handelsbanken Fonder AB now owns 31,149 shares of the real estate investment trust’s stock worth $432,000 after purchasing an additional 3,500 shares during the last quarter. Finally, LifePro Asset Management grew its position in shares of Two Harbors Investment by 30.9% in the third quarter. LifePro Asset Management now owns 201,792 shares of the real estate investment trust’s stock valued at $2,801,000 after purchasing an additional 47,689 shares in the last quarter. Institutional investors and hedge funds own 64.19% of the company’s stock.

Two Harbors Investment Company Profile

Two Harbors Investment Corp. invests in, finances, and manages mortgage servicing rights (MSRs), agency residential mortgage-backed securities (RMBS), and other financial assets through RoundPoint in the United States. The company target assets include agency RMBS collateralized by fixed rate mortgage loans, adjustable rate mortgage loans, hybrid mortgage loans, or derivatives; and other assets, such as financial and mortgage-related assets, including non-agency securities and non-hedging transactions.