Two Harbors Investments (NYSE:TWO) Sees Strong Trading Volume – Should You Buy?

Two Harbors Investments Corp (NYSE:TWO) saw unusually-high trading volume on Monday . 3,610,001 shares were traded during mid-day trading, an increase of 24% from the previous session’s volume of 2,919,974 shares.The stock last traded at $12.0550 and had previously closed at $12.09.

Analysts Set New Price Targets

Several equities research analysts have weighed in on TWO shares. Royal Bank Of Canada increased their price target on shares of Two Harbors Investments from $11.00 to $12.00 and gave the company a “sector perform” rating in a research report on Monday, July 27th. Compass Point reaffirmed a “neutral” rating and set a $13.00 price objective on shares of Two Harbors Investments in a research note on Tuesday, June 9th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Two Harbors Investments in a research note on Friday, July 24th. JPMorgan Chase & Co. increased their target price on shares of Two Harbors Investments from $11.00 to $12.00 and gave the stock an “underweight” rating in a report on Friday, July 17th. Finally, Zacks Research raised Two Harbors Investments from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, July 21st. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, Two Harbors Investments currently has a consensus rating of “Hold” and an average price target of $12.75.

Two Harbors Investments Price Performance

The business has a 50 day moving average of $12.23 and a 200 day moving average of $11.70. The company has a market cap of $1.27 billion, a PE ratio of -16.29 and a beta of 1.04. The company has a debt-to-equity ratio of 0.85, a current ratio of 1.08 and a quick ratio of 1.08.

Two Harbors Investments (NYSE:TWO) last released its quarterly earnings results on Tuesday, July 28th. The real estate investment trust reported $0.28 earnings per share for the quarter, meeting the consensus estimate of $0.28. Two Harbors Investments had a negative net margin of 6.09% and a positive return on equity of 12.79%. The business had revenue of $247.57 million for the quarter, compared to analysts’ expectations of $9.45 million. As a group, research analysts predict that Two Harbors Investments Corp will post 0.89 EPS for the current year.

Two Harbors Investments Dividend Announcement

The business also recently announced 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 of this dividend was Thursday, July 2nd. This represents a $1.36 dividend on an annualized basis and a dividend yield of 11.3%. Two Harbors Investments’s payout ratio is presently -66.22%.

Hedge Funds Weigh In On Two Harbors Investments

A number of institutional investors have recently bought and sold shares of the stock. Millennium Management LLC boosted its position in Two Harbors Investments by 45.3% during the 3rd quarter. Millennium Management LLC now owns 4,535,534 shares of the real estate investment trust’s stock valued at $44,766,000 after acquiring an additional 1,415,062 shares in the last quarter. Balyasny Asset Management L.P. raised its position in shares of Two Harbors Investments by 490.7% in the 2nd quarter. Balyasny Asset Management L.P. now owns 3,583,939 shares of the real estate investment trust’s stock worth $38,599,000 after acquiring an additional 2,977,196 shares in the last quarter. Invesco Ltd. raised its position in shares of Two Harbors Investments by 44.5% in the 2nd quarter. Invesco Ltd. now owns 2,649,977 shares of the real estate investment trust’s stock worth $28,540,000 after acquiring an additional 815,931 shares in the last quarter. Geode Capital Management LLC lifted its stake in shares of Two Harbors Investments by 0.9% in the 4th quarter. Geode Capital Management LLC now owns 2,485,048 shares of the real estate investment trust’s stock valued at $26,098,000 after purchasing an additional 21,212 shares during the period. Finally, Marshall Wace LLP purchased a new position in shares of Two Harbors Investments in the 4th quarter valued at approximately $23,886,000. 64.19% of the stock is owned by institutional investors.

Two Harbors Investments Company Profile

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.