Goldman Sachs Group Inc. Decreases Stock Holdings in Two Harbors Investments Corp $TWO

Key Points

• Goldman Sachs Group Inc. has reduced its stake in Two Harbors Investments Corp by 20.3%, selling 97,353 shares, and now holds approximately 0.37% of the company, valued at about $5.1 million.
• Two Harbors Investments recently announced a quarterly dividend of $0.34, representing a 13.6% annual yield, but also disclosed a negative net margin of 67.06% in their latest earnings report.
• Analysts have lowered their price targets for Two Harbors Investments, with Maxim Group and Royal Bank Of Canada adjusting their objectives from $15 and $13 to $12, indicating a cautious outlook for the stock.

Goldman Sachs Group Inc. reduced its position in Two Harbors Investments Corp (NYSE:TWO - Free Report) by 20.3% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 381,128 shares of the real estate investment trust's stock after selling 97,353 shares during the quarter. Goldman Sachs Group Inc. owned about 0.37% of Two Harbors Investments worth $5,092,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also bought and sold shares of the company. CWM LLC grew its holdings in shares of Two Harbors Investments by 68.4% during the first quarter. CWM LLC now owns 2,192 shares of the real estate investment trust's stock valued at $29,000 after buying an additional 890 shares during the last quarter. Montag A & Associates Inc. grew its holdings in shares of Two Harbors Investments by 29.2% during the first quarter. Montag A & Associates Inc. now owns 5,285 shares of the real estate investment trust's stock valued at $71,000 after buying an additional 1,193 shares during the last quarter. Smartleaf Asset Management LLC raised its stake in shares of Two Harbors Investments by 233.0% during the 1st quarter. Smartleaf Asset Management LLC now owns 6,506 shares of the real estate investment trust's stock valued at $86,000 after buying an additional 4,552 shares during the last quarter. Wolverine Trading LLC lifted its holdings in shares of Two Harbors Investments by 866.3% in the 4th quarter. Wolverine Trading LLC now owns 10,533 shares of the real estate investment trust's stock valued at $122,000 after buying an additional 9,443 shares during the period. Finally, Federated Hermes Inc. acquired a new position in shares of Two Harbors Investments in the 1st quarter valued at about $140,000. 64.19% of the stock is owned by hedge funds and other institutional investors.

Two Harbors Investments Stock Down 0.2%

Shares of TWO traded down $0.02 during midday trading on Friday, reaching $9.91. The stock had a trading volume of 3,459,361 shares, compared to its average volume of 1,571,173. Two Harbors Investments Corp has a 1-year low of $9.49 and a 1-year high of $14.28. The company's fifty day simple moving average is $10.04 and its two-hundred day simple moving average is $11.10. The company has a market cap of $1.03 billion, a price-to-earnings ratio of -2.78 and a beta of 1.28. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.07 and a quick ratio of 1.07.

Two Harbors Investments (NYSE:TWO - Get Free Report) last announced its quarterly earnings data on Monday, 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 67.06% and a positive return on equity of 9.39%. The business had revenue of ($18.12) million for the quarter, compared to analyst estimates of ($23.29) million. Equities research analysts expect that Two Harbors Investments Corp will post 0.81 earnings per share for the current year.

Two Harbors Investments Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 29th. Investors of record on Friday, October 3rd will be paid a dividend of $0.34 per share. This represents a $1.36 annualized dividend and a yield of 13.7%. The ex-dividend date is Friday, October 3rd. Two Harbors Investments's dividend payout ratio (DPR) is currently -43.82%.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. UBS Group decreased their price objective on Two Harbors Investments from $12.00 to $11.00 and set a "buy" rating for the company in a report on Wednesday, September 3rd. Maxim Group lowered their target price on shares of Two Harbors Investments from $15.00 to $12.00 and set a "buy" rating on the stock in a research note on Tuesday, July 29th. JMP Securities reissued a "market perform" rating on shares of Two Harbors Investments in a research note on Thursday, July 3rd. Royal Bank Of Canada lowered their target price on shares of Two Harbors Investments from $13.00 to $12.00 and set a "sector perform" rating on the stock in a research note on Wednesday, May 28th. Finally, Citizens Jmp restated a "market perform" rating on shares of Two Harbors Investments in a research report on Thursday, July 3rd. Three research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $12.43.

Insider Buying and Selling

In related news, CIO Nicholas Letica sold 8,654 shares of Two Harbors Investments stock in a transaction on Monday, August 18th. The shares were sold at an average price of $10.02, for a total transaction of $86,713.08. Following the sale, the executive directly owned 160,281 shares in the company, valued at $1,606,015.62. This trade represents a 5.12% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.70% of the stock is owned by corporate insiders.

Two Harbors Investments Company Profile

Two Harbors Investment Corp. invests in, finances, and manages mortgage servicing rights (MSRs), agency residential mortgage-backed securities (RMBS), and other financial assets through RoundPoint in the United States. The company target assets include agency RMBS collateralized by fixed rate mortgage loans, adjustable rate mortgage loans, hybrid mortgage loans, or derivatives; and other assets, such as financial and mortgage-related assets, including non-agency securities and non-hedging transactions.