Two Harbors Investment (TWO) Earns “Buy” Rating from Maxim Group
Maxim Group reissued their buy rating on shares of Two Harbors Investment (NYSE:TWO) in a research note issued to investors on Thursday. They currently have a $15.00 price target on the real estate investment trust’s stock.
“TWO reported a 4Q18 comprehensive loss of ($1.24) per share, versus its $0.47 dividend, so book value per share was down 11.5%. the decline was attributable to spread-widening in Agency RMBS and about 3% to spread-widening in non-Agency RMBS, in a volatile and difficult quarter for all mortgage REITs. According to management, book value recovered about 4% in January 2019 (excluding accrual of dividends).”,” the firm’s analyst commented.
Several other research firms also recently weighed in on TWO. ValuEngine upgraded Two Harbors Investment from a strong sell rating to a sell rating in a research report on Tuesday, November 6th. JMP Securities lowered their target price on Two Harbors Investment from $17.00 to $16.00 and set a market outperform rating on the stock in a research report on Thursday, November 15th. Zacks Investment Research upgraded Two Harbors Investment from a hold rating to a buy rating and set a $16.00 target price on the stock in a research report on Saturday, October 27th. Barclays set a $16.00 target price on Two Harbors Investment and gave the company a buy rating in a research report on Thursday, November 8th. Finally, Raymond James initiated coverage on Two Harbors Investment in a research report on Thursday, October 11th. They set an outperform rating and a $16.50 target price on the stock. One research analyst has rated the stock with a sell rating, three have issued a hold rating and five have given a buy rating to the stock. The stock has a consensus rating of Hold and a consensus price target of $15.63.
Two Harbors Investment (NYSE:TWO) last released its earnings results on Wednesday, February 6th. The real estate investment trust reported $0.49 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.47 by $0.02. The company had revenue of $89.65 million for the quarter, compared to the consensus estimate of $106.46 million. Two Harbors Investment had a positive return on equity of 13.78% and a negative net margin of 4.12%. Two Harbors Investment’s quarterly revenue was down 10.6% compared to the same quarter last year. During the same period in the previous year, the business earned $0.47 earnings per share. On average, equities research analysts anticipate that Two Harbors Investment will post 1.91 EPS for the current year.
The firm also recently declared a quarterly dividend, which was paid on Monday, January 28th. Shareholders of record on Monday, December 31st were issued a dividend of $0.47 per share. The ex-dividend date was Friday, December 28th. This represents a $1.88 dividend on an annualized basis and a yield of 13.30%. Two Harbors Investment’s dividend payout ratio is presently 95.43%.
In other Two Harbors Investment news, insider William Roth sold 58,040 shares of the firm’s stock in a transaction dated Wednesday, January 30th. The stock was sold at an average price of $14.46, for a total transaction of $839,258.40. Following the sale, the insider now directly owns 730,122 shares of the company’s stock, valued at $10,557,564.12. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Brad Farrell sold 29,095 shares of the firm’s stock in a transaction dated Wednesday, January 30th. The shares were sold at an average price of $14.48, for a total value of $421,295.60. Following the sale, the chief financial officer now directly owns 265,087 shares in the company, valued at $3,838,459.76. The disclosure for this sale can be found here. Over the last three months, insiders have sold 132,572 shares of company stock worth $1,916,447. Insiders own 1.41% of the company’s stock.
A number of large investors have recently bought and sold shares of TWO. Vanguard Group Inc raised its holdings in Two Harbors Investment by 44.9% during the third quarter. Vanguard Group Inc now owns 21,929,421 shares of the real estate investment trust’s stock valued at $327,406,000 after acquiring an additional 6,798,312 shares during the period. Vanguard Group Inc. increased its holdings in shares of Two Harbors Investment by 44.9% in the third quarter. Vanguard Group Inc. now owns 21,929,421 shares of the real estate investment trust’s stock worth $327,406,000 after purchasing an additional 6,798,312 shares during the last quarter. State Treasurer State of Michigan increased its holdings in shares of Two Harbors Investment by 37.8% in the third quarter. State Treasurer State of Michigan now owns 11,552,142 shares of the real estate investment trust’s stock worth $172,473,000 after purchasing an additional 3,170,000 shares during the last quarter. Nan Shan Life Insurance Co. Ltd. increased its holdings in shares of Two Harbors Investment by 79.2% in the third quarter. Nan Shan Life Insurance Co. Ltd. now owns 5,652,380 shares of the real estate investment trust’s stock worth $84,390,000 after purchasing an additional 2,498,679 shares during the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of Two Harbors Investment in the third quarter worth about $32,716,000. 60.47% of the stock is currently owned by institutional investors and hedge funds.
About Two Harbors Investment
Two Harbors Investment Corp. operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS), non-agency securities, mortgage servicing rights, and other financial assets in the United States. Its target assets include agency RMBS collateralized by fixed rate mortgage loans, adjustable rate mortgage loans, hybrid mortgage loans, or derivatives; non-agency securities collateralized by prime mortgage loans, Alt-A mortgage loans, pay-option ARM loans, and subprime mortgage loans; and other assets, such as financial and mortgage-related assets, as well as residential mortgage loans and non-hedging transactions.
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