Two Harbors Investments (NYSE:TWO) Releases Earnings Results, Hits Estimates

Two Harbors Investments (NYSE:TWO) released its quarterly earnings data on Tuesday. The real estate investment trust reported $0.28 EPS for the quarter, hitting analysts’ consensus estimates of $0.28, FiscalAI reports. The company had revenue of $247.57 million for the quarter, compared to the consensus estimate of $9.45 million. Two Harbors Investments had a positive return on equity of 13.62% and a negative net margin of 87.72%.

Two Harbors Investments Stock Down 0.1%

Shares of TWO traded down $0.01 during mid-day trading on Tuesday, reaching $12.11. 1,990,336 shares of the stock traded hands, compared to its average volume of 2,894,809. The stock has a fifty day simple moving average of $12.28 and a 200 day simple moving average of $11.69. Two Harbors Investments has a 12-month low of $8.78 and a 12-month high of $14.17. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.91. The firm has a market cap of $1.27 billion, a price-to-earnings ratio of -3.17 and a beta of 1.03.

Two Harbors Investments Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Thursday, July 2nd were paid a dividend of $0.34 per share. The ex-dividend date was Thursday, July 2nd. This represents a $1.36 dividend on an annualized basis and a dividend yield of 11.2%. Two Harbors Investments’s dividend payout ratio (DPR) is currently -35.60%.

Institutional Investors Weigh In On Two Harbors Investments

A number of large investors have recently added to or reduced their stakes in the company. Smartleaf Asset Management LLC increased its stake in Two Harbors Investments by 34.5% during the 4th quarter. Smartleaf Asset Management LLC now owns 3,825 shares of the real estate investment trust’s stock worth $40,000 after buying an additional 981 shares during the period. Osaic Holdings Inc. lifted its holdings in Two Harbors Investments by 11.1% in the 2nd quarter. Osaic Holdings Inc. now owns 13,130 shares of the real estate investment trust’s stock worth $142,000 after buying an additional 1,309 shares in the last quarter. Janney Montgomery Scott LLC boosted its position in Two Harbors Investments by 12.2% in the 4th quarter. Janney Montgomery Scott LLC now owns 15,317 shares of the real estate investment trust’s stock valued at $161,000 after buying an additional 1,663 shares during the last quarter. Commonwealth Equity Services LLC raised its holdings in Two Harbors Investments by 14.7% in the fourth quarter. Commonwealth Equity Services LLC now owns 19,054 shares of the real estate investment trust’s stock valued at $200,000 after acquiring an additional 2,441 shares in the last quarter. Finally, Illinois Municipal Retirement Fund raised its holdings in Two Harbors Investments by 5.0% in the fourth quarter. Illinois Municipal Retirement Fund now owns 56,571 shares of the real estate investment trust’s stock valued at $594,000 after acquiring an additional 2,686 shares in the last quarter. 64.19% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on TWO. Royal Bank Of Canada boosted their target price on Two Harbors Investments from $11.00 to $12.00 and gave the stock a “sector perform” rating in a report on Monday. Weiss Ratings upgraded shares of Two Harbors Investments from a “sell (d)” rating to a “sell (d+)” rating in a report on Wednesday, April 29th. Zacks Research raised shares of Two Harbors Investments from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, July 21st. JPMorgan Chase & Co. increased their price target on Two Harbors Investments from $11.00 to $12.00 and gave the company an “underweight” rating in a report on Friday, July 17th. Finally, Compass Point reiterated a “neutral” rating and issued a $13.00 price target on shares of Two Harbors Investments in a report on Tuesday, June 9th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $12.60.

About Two Harbors Investments

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.