Two Harbors Investments Corp (TWO) Raised to Hold at Zacks Investment Research
Zacks Investment Research upgraded shares of Two Harbors Investments Corp (NYSE:TWO) from a sell rating to a hold rating in a research report sent to investors 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. “
Several other research analysts also recently weighed in on the stock. Wells Fargo & Company downgraded shares of Two Harbors Investments Corp from an outperform rating to a market perform rating and set a $9.50 target price on the stock. in a research report on Tuesday, April 11th. They noted that the move was a valuation call. Maxim Group restated 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 began coverage on shares of Two Harbors Investments Corp in a report on Wednesday, July 5th. They set an outperform rating and a $10.50 price target for the company. Three research analysts have rated the stock with a hold rating, three have assigned a buy rating and one has given a strong buy rating to the company. The stock presently has a consensus rating of Buy and a consensus target price of $10.05.
Shares of Two Harbors Investments Corp (TWO) opened at 9.93 on Thursday. The stock has a market capitalization of $3.46 billion, a price-to-earnings ratio of 6.74 and a beta of 0.59. Two Harbors Investments Corp has a 1-year low of $7.91 and a 1-year high of $10.54. The stock’s 50 day moving average is $9.97 and its 200 day moving average is $9.65.
Two Harbors Investments Corp (NYSE:TWO) last released its earnings results on Monday, August 7th. The real estate investment trust reported $0.28 earnings per share for the quarter, topping the consensus estimate of $0.26 by $0.02. The business had revenue of $117.79 million for the quarter, compared to the consensus estimate of $123.04 million. Two Harbors Investments Corp had a net margin of 74.05% and a return on equity of 9.81%. The firm’s quarterly revenue was up 16.8% compared to the same quarter last year. During the same period last year, the firm posted $0.22 earnings per share. On average, equities analysts forecast that Two Harbors Investments Corp will post $1.06 EPS for the current year.
The firm also recently announced a quarterly dividend, which was paid on Thursday, July 27th. Shareholders of record on Friday, June 30th were paid a $0.26 dividend. The ex-dividend date was Wednesday, June 28th. This is a boost from Two Harbors Investments Corp’s previous quarterly dividend of $0.25. This represents a $1.04 dividend on an annualized basis and a yield of 10.47%. Two Harbors Investments Corp’s payout ratio is 75.91%.
In other Two Harbors Investments Corp news, General Counsel Rebecca B. Sandberg sold 5,566 shares of Two Harbors Investments Corp stock in a transaction that occurred on Monday, May 15th. The shares were sold at an average price of $9.85, for a total value of $54,825.10. Following the completion of the sale, the general counsel now directly owns 179,466 shares in the company, valued at $1,767,740.10. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Brad Farrell sold 19,663 shares of Two Harbors Investments Corp stock in a transaction that occurred on Monday, May 15th. The shares were sold at an average price of $9.86, for a total transaction of $193,877.18. Following the completion of the sale, the chief financial officer now owns 410,727 shares of the company’s stock, valued at $4,049,768.22. The disclosure for this sale can be found here. 1.16% of the stock is owned by insiders.
Several institutional investors have recently added to or reduced their stakes in TWO. Vanguard Group Inc. raised its position in Two Harbors Investments Corp by 4.0% in the first quarter. Vanguard Group Inc. now owns 28,170,629 shares of the real estate investment trust’s stock worth $270,156,000 after buying an additional 1,095,212 shares in the last quarter. Boston Partners raised its position in shares of Two Harbors Investments Corp by 21.8% in the first quarter. Boston Partners now owns 7,244,328 shares of the real estate investment trust’s stock worth $69,473,000 after buying an additional 1,295,633 shares during the period. State Street Corp raised its position in shares of Two Harbors Investments Corp by 2.0% in the fourth quarter. State Street Corp now owns 5,361,504 shares of the real estate investment trust’s stock worth $46,750,000 after buying an additional 107,660 shares during the period. Russell Investments Group Ltd. raised its position in shares of Two Harbors Investments Corp by 21.0% in the first quarter. Russell Investments Group Ltd. now owns 3,909,635 shares of the real estate investment trust’s stock worth $37,507,000 after buying an additional 679,415 shares during the period. Finally, UBS Group AG raised its position in shares of Two Harbors Investments Corp by 0.4% in the first quarter. UBS Group AG now owns 3,562,131 shares of the real estate investment trust’s stock worth $34,161,000 after buying an additional 12,683 shares during the period. 71.02% of the stock is currently owned by institutional investors.
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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