Two Harbors Investment (NYSE:TWO) Stock Price Up 3.6% - Should You Buy?

Two Harbors Investment Corp. (NYSE:TWO - Get Free Report)'s stock price rose 3.6% during mid-day trading on Tuesday . The stock traded as high as $12.30 and last traded at $12.44. Approximately 327,580 shares changed hands during trading, a decline of 73% from the average daily volume of 1,194,294 shares. The stock had previously closed at $12.00.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on TWO shares. JMP Securities decreased their target price on Two Harbors Investment from $14.00 to $13.50 and set a "market outperform" rating on the stock in a research report on Thursday, April 17th. UBS Group lifted their price target on shares of Two Harbors Investment from $12.00 to $13.00 and gave the stock a "buy" rating in a research note on Thursday. StockNews.com cut shares of Two Harbors Investment from a "hold" rating to a "sell" rating in a research note on Wednesday. Keefe, Bruyette & Woods upped their price objective on Two Harbors Investment from $12.95 to $13.25 and gave the company a "market perform" rating in a research note on Wednesday. Finally, JPMorgan Chase & Co. decreased their price target on Two Harbors Investment from $12.50 to $10.50 and set a "neutral" rating on the stock in a research note on Wednesday, April 16th. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and four have issued a buy rating to the stock. According to MarketBeat.com, Two Harbors Investment presently has a consensus rating of "Hold" and an average price target of $13.29.

Two Harbors Investment Stock Performance

The company has a debt-to-equity ratio of 0.84, a current ratio of 1.09 and a quick ratio of 1.07. The stock's 50 day simple moving average is $12.62 and its two-hundred day simple moving average is $12.30. The company has a market capitalization of $1.24 billion, a P/E ratio of 5.62 and a beta of 1.36.

Two Harbors Investment (NYSE:TWO - Get Free Report) last issued its quarterly earnings results on Monday, April 28th. The real estate investment trust reported $0.24 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.28 by ($0.04). Two Harbors Investment had a net margin of 66.24% and a return on equity of 6.52%. The firm had revenue of ($20.33) million for the quarter, compared to analyst estimates of ($28.53) million. As a group, research analysts expect that Two Harbors Investment Corp. will post 0.81 earnings per share for the current year.

Two Harbors Investment Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, April 29th. Investors of record on Friday, April 4th were given a $0.45 dividend. The ex-dividend date of this dividend was Friday, April 4th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 15.16%. Two Harbors Investment's dividend payout ratio is -352.94%.

Insider Transactions at Two Harbors Investment

In other news, insider Rebecca B. Sandberg sold 2,561 shares of the firm's stock in a transaction that occurred on Monday, February 10th. The shares were sold at an average price of $12.96, for a total transaction of $33,190.56. Following the completion of the transaction, the insider now directly owns 146,803 shares of the company's stock, valued at $1,902,566.88. This trade represents a 1.71 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.70% of the company's stock.

Institutional Investors Weigh In On Two Harbors Investment

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. CWM LLC grew its holdings in shares of Two Harbors Investment by 68.4% in the 1st quarter. CWM LLC now owns 2,192 shares of the real estate investment trust's stock valued at $29,000 after acquiring an additional 890 shares in the last quarter. Sterling Capital Management LLC raised its stake in shares of Two Harbors Investment by 818.5% during the 4th quarter. Sterling Capital Management LLC now owns 3,325 shares of the real estate investment trust's stock worth $39,000 after purchasing an additional 2,963 shares in the last quarter. Murphy & Mullick Capital Management Corp acquired a new stake in shares of Two Harbors Investment in the 4th quarter valued at approximately $40,000. KBC Group NV raised its position in Two Harbors Investment by 86.5% during the fourth quarter. KBC Group NV now owns 6,635 shares of the real estate investment trust's stock worth $78,000 after acquiring an additional 3,077 shares in the last quarter. Finally, Wolverine Trading LLC lifted its stake in Two Harbors Investment by 866.3% in the fourth quarter. Wolverine Trading LLC now owns 10,533 shares of the real estate investment trust's stock valued at $122,000 after acquiring an additional 9,443 shares during the last quarter. 64.19% of the stock is currently owned by institutional investors and hedge funds.

Two Harbors Investment 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.