Two Harbors Investment (NYSE:TWO) Sets New 12-Month Low – Here’s What Happened

Two Harbors Investment Corp. (NYSE:TWO)’s share price reached a new 52-week low during trading on Tuesday . The stock traded as low as $10.84 and last traded at $11.12, with a volume of 1107174 shares changing hands. The stock had previously closed at $11.10.

Wall Street Analysts Forecast Growth

TWO has been the subject of several research reports. Compass Point reduced their price target on Two Harbors Investment from $15.75 to $14.75 and set a “buy” rating for the company in a report on Monday, November 25th. JPMorgan Chase & Co. cut their target price on Two Harbors Investment from $13.50 to $11.50 and set a “neutral” rating on the stock in a report on Wednesday, October 30th. StockNews.com upgraded Two Harbors Investment to a “sell” rating in a research note on Thursday, December 12th. Royal Bank of Canada cut their price objective on Two Harbors Investment from $14.00 to $12.00 and set a “sector perform” rating on the stock in a research note on Friday, November 1st. Finally, JMP Securities decreased their target price on Two Harbors Investment from $15.00 to $14.50 and set a “market outperform” rating for the company in a research report on Thursday, October 17th. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and four have assigned a buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $13.71.

Two Harbors Investment Price Performance

The firm has a 50-day moving average price of $11.69 and a two-hundred day moving average price of $12.76. The company has a debt-to-equity ratio of 0.80, a current ratio of 1.07 and a quick ratio of 1.07.

Two Harbors Investment (NYSE:TWO) last posted its quarterly earnings results on Monday, October 28th. The real estate investment trust reported $0.13 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.35 by ($0.22). The company had revenue of $112.64 million during the quarter. Two Harbors Investment had a positive return on equity of 4.45% and a negative net margin of 87.84%. During the same quarter last year, the company earned ($0.01) EPS. As a group, sell-side analysts predict that Two Harbors Investment Corp. will post 0.47 EPS for the current year.

Two Harbors Investment Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 29th. Shareholders of record on Friday, January 3rd will be given a $0.45 dividend. The ex-dividend date is Friday, January 3rd. This represents a $1.80 dividend on an annualized basis and a dividend yield of 15.48%. Two Harbors Investment’s dividend payout ratio is currently -37.34%.

Insider Transactions at Two Harbors Investment

In other Two Harbors Investment news, CIO Nicholas Letica sold 3,956 shares of Two Harbors Investment stock in a transaction that occurred on Wednesday, January 8th. The stock was sold at an average price of $11.21, for a total transaction of $44,346.76. Following the sale, the executive now directly owns 180,712 shares of the company’s stock, valued at approximately $2,025,781.52. The trade was a 2.14 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Rebecca B. Sandberg sold 3,014 shares of the stock in a transaction that occurred on Tuesday, January 14th. The stock was sold at an average price of $11.24, for a total value of $33,877.36. Following the completion of the transaction, the insider now directly owns 149,364 shares of the company’s stock, valued at approximately $1,678,851.36. The trade was a 1.98 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 29,754 shares of company stock valued at $333,307. 0.61% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. Phocas Financial Corp. bought a new stake in shares of Two Harbors Investment in the 3rd quarter worth about $3,505,000. International Assets Investment Management LLC boosted its position in Two Harbors Investment by 1,392.7% in the third quarter. International Assets Investment Management LLC now owns 193,478 shares of the real estate investment trust’s stock valued at $2,685,000 after buying an additional 180,516 shares in the last quarter. Barclays PLC grew its stake in Two Harbors Investment by 346.0% during the third quarter. Barclays PLC now owns 172,557 shares of the real estate investment trust’s stock worth $2,395,000 after buying an additional 133,869 shares during the last quarter. State Street Corp increased its holdings in shares of Two Harbors Investment by 2.7% during the third quarter. State Street Corp now owns 3,877,111 shares of the real estate investment trust’s stock worth $53,814,000 after buying an additional 102,294 shares in the last quarter. Finally, Allspring Global Investments Holdings LLC raised its stake in shares of Two Harbors Investment by 1.6% in the third quarter. Allspring Global Investments Holdings LLC now owns 5,281,220 shares of the real estate investment trust’s stock valued at $73,303,000 after acquiring an additional 84,038 shares during the last quarter. 64.19% of the stock is currently owned by institutional investors and hedge funds.

About Two Harbors Investment

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.