Two Harbors Investment (NYSE:TWO) was upgraded by Zacks Investment Research from a "hold" rating to a "buy" rating in a research report issued on Saturday, Zacks.com reports. The firm currently has a $7.25 target price on the real estate investment trust's stock. Zacks Investment Research's price target would suggest a potential upside of 12.06% from the stock's previous close.
According to Zacks, "Two Harbors Investment Corp is a Real Estate Investment Trust that focuses on investing in, financing and managing residential mortgage-backed securities and mortgage loans. Its objective is to provide risk-adjusted returns to investors through dividends and capital appreciation. Two Harbors intends to acquire and manage a portfolio of mortgage-backed securities, focusing on security selection and the relative value of various sectors within the mortgage market. As an investment strategy, the company expects to deploy moderate borrowings through, with respect to Agency RMBS, short-term borrowings structured as repurchase agreements and, with respect to non-Agency RMBS and residential mortgage loans, private funding sources. It may also finance portions of its portfolio through non-recourse term borrowing facilities and equity financing under the Legacy Loan Program and Term Asset-Backed Securities Lending Facility (TALF), if such financing becomes available. "
Other equities analysts have also recently issued research reports about the stock. BTIG Research began coverage on shares of Two Harbors Investment in a research note on Monday, November 23rd. They set a "neutral" rating for the company. Maxim Group restated a "hold" rating on shares of Two Harbors Investment in a research report on Tuesday, August 11th. ValuEngine cut shares of Two Harbors Investment from a "hold" rating to a "sell" rating in a report on Monday, August 3rd. Finally, Raymond James downgraded Two Harbors Investment from an "outperform" rating to a "market perform" rating in a research report on Tuesday. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and six have issued a buy rating to the company. The stock presently has a consensus rating of "Hold" and a consensus price target of $9.62.
Two Harbors Investment stock opened at $6.47 on Friday. The firm has a market capitalization of $1.77 billion, a P/E ratio of -1.04 and a beta of 1.60. Two Harbors Investment has a one year low of $2.25 and a one year high of $15.85. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.14 and a quick ratio of 1.14. The business has a fifty day moving average price of $5.64 and a 200-day moving average price of $5.28.
Two Harbors Investment (NYSE:TWO) last issued its earnings results on Wednesday, November 4th. The real estate investment trust reported $0.28 EPS for the quarter, topping the consensus estimate of $0.23 by $0.05. The business had revenue of $60.53 million during the quarter, compared to the consensus estimate of $64.20 million. Two Harbors Investment had a positive return on equity of 8.85% and a negative net margin of 139.57%. The firm's revenue was up 3.2% compared to the same quarter last year. During the same quarter last year, the company earned $0.24 EPS. Sell-side analysts expect that Two Harbors Investment will post 0.63 earnings per share for the current fiscal year.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Private Advisor Group LLC bought a new position in shares of Two Harbors Investment during the second quarter valued at about $35,000. J.W. Cole Advisors Inc. purchased a new stake in Two Harbors Investment during the 2nd quarter valued at $55,000. IHT Wealth Management LLC grew its holdings in Two Harbors Investment by 20.2% in the 3rd quarter. IHT Wealth Management LLC now owns 12,709 shares of the real estate investment trust's stock worth $65,000 after acquiring an additional 2,132 shares during the last quarter. Public Employees Retirement System of Ohio increased its position in shares of Two Harbors Investment by 17.2% in the third quarter. Public Employees Retirement System of Ohio now owns 13,015 shares of the real estate investment trust's stock valued at $66,000 after acquiring an additional 1,909 shares during the period. Finally, PNC Financial Services Group Inc. raised its stake in shares of Two Harbors Investment by 47.0% during the second quarter. PNC Financial Services Group Inc. now owns 13,451 shares of the real estate investment trust's stock valued at $67,000 after acquiring an additional 4,300 shares during the last quarter. 61.62% 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, and hybrid adjustable-rate mortgage (ARMs); non-agency securities collateralized by residential 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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