BlackRock Inc. Buys New Holdings in Two Harbors Investments Corp $TWO

Key Points

• BlackRock acquired 17.06 million shares of Two Harbors Investments during the second quarter, worth approximately $211.7 million and representing a 16.22% stake. Institutional investors collectively own 64.19% of the company.
• Two Harbors reported quarterly EPS of $0.28, in line with analyst expectations, and declared a $0.34 quarterly dividend, or $1.36 annually, yielding approximately 11.2%.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating with an average price target of $12.75, despite one firm upgrading it to “Strong Buy.”

BlackRock Inc. acquired a new stake in Two Harbors Investments Corp (NYSE:TWO - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 17,057,600 shares of the real estate investment trust's stock, valued at approximately $211,685,000. BlackRock Inc. owned 16.22% of Two Harbors Investments at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently modified their holdings of TWO. Quantinno Capital Management LP raised its holdings in shares of Two Harbors Investments by 243.0% during the first quarter. Quantinno Capital Management LP now owns 139,717 shares of the real estate investment trust's stock valued at $1,596,000 after acquiring an additional 98,987 shares in the last quarter. UBS Group AG boosted its holdings in Two Harbors Investments by 42.3% in the fourth quarter. UBS Group AG now owns 1,564,418 shares of the real estate investment trust's stock valued at $16,426,000 after acquiring an additional 464,929 shares in the last quarter. Gabelli Funds LLC boosted its holdings in Two Harbors Investments by 200.0% in the first quarter. Gabelli Funds LLC now owns 150,000 shares of the real estate investment trust's stock valued at $1,713,000 after acquiring an additional 100,000 shares in the last quarter. Credit Industriel ET Commercial purchased a new position in Two Harbors Investments during the 1st quarter valued at $1,062,000. Finally, ABC Arbitrage SA purchased a new position in Two Harbors Investments during the 4th quarter valued at $1,033,000. 64.19% of the stock is owned by institutional investors.

Two Harbors Investments Stock Performance

NYSE:TWO opened at $12.18 on Friday. The firm has a market capitalization of $1.28 billion, a P/E ratio of -16.46 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 Corp has a one year low of $11.98 and a one year high of $12.19. The company's 50-day simple moving average is $12.13 and its 200 day simple moving average is $11.60.

Two Harbors Investments (NYSE:TWO - Get Free Report) last announced its earnings results on Tuesday, July 28th. The real estate investment trust reported $0.28 earnings per share for the quarter, meeting analysts' consensus estimates 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 during the quarter, compared to the consensus estimate of $9.45 million. As a group, analysts forecast that Two Harbors Investments Corp will post 0.89 EPS for the current fiscal year.

Two Harbors Investments Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders 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 yield of 11.2%. Two Harbors Investments's payout ratio is presently -64.86%.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on TWO shares. Zacks Research raised shares of Two Harbors Investments from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, July 21st. Weiss Ratings raised shares of Two Harbors Investments from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Friday, August 7th. Compass Point restated a "neutral" rating and issued a $13.00 price objective on shares of Two Harbors Investments in a report on Tuesday, June 9th. BTIG Research reaffirmed a "neutral" rating on shares of Two Harbors Investments in a research report on Wednesday. Finally, JPMorgan Chase & Co. upped their target price on Two Harbors Investments from $11.00 to $12.00 and gave the stock an "underweight" rating in a report on Friday, July 17th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Two Harbors Investments currently has a consensus rating of "Hold" and an average price target of $12.75.

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.

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