Two Harbors Investments Corp (NYSE:TWO) Given Average Recommendation of "Hold" by Analysts

Key Points

• Two Harbors Investments Corp (NYSE:TWO) has received a consensus rating of "Hold" from nine analysts, with five ratings being "hold" and four as "buy".
• The average 12-month price target for the stock has been set at $12.8750, though recent reports have seen revisions in target prices from various analysts.
• The company has recently declared a quarterly dividend of $0.39 per share, representing an annualized yield of 15.8%, although it has a negative payout ratio of -43.82%.

Two Harbors Investments Corp (NYSE:TWO - Get Free Report) has earned a consensus rating of "Hold" from the nine analysts that are presently covering the stock, Marketbeat reports. Five analysts have rated the stock with a hold rating and four have given a buy rating to the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $12.8750.

TWO has been the subject of several recent analyst reports. JPMorgan Chase & Co. lowered their target price on Two Harbors Investments from $12.50 to $10.50 and set a "neutral" rating for the company in a research note on Wednesday, April 16th. JMP Securities restated a "market perform" rating on shares of Two Harbors Investments in a research note on Thursday, July 3rd. Wall Street Zen cut shares of Two Harbors Investments from a "hold" rating to a "sell" rating in a research report on Wednesday, April 30th. UBS Group reduced their price target on shares of Two Harbors Investments from $13.00 to $12.00 and set a "buy" rating on the stock in a research report on Thursday, July 10th. Finally, Maxim Group reduced their price target on shares of Two Harbors Investments from $15.00 to $12.00 and set a "buy" rating on the stock in a research report on Tuesday, July 29th.

Institutional Investors Weigh In On Two Harbors Investments

A number of hedge funds have recently made changes to their positions in TWO. Raymond James Financial Inc. bought a new stake in shares of Two Harbors Investments during the fourth quarter valued at approximately $172,000. LPL Financial LLC increased its stake in shares of Two Harbors Investments by 18.8% during the fourth quarter. LPL Financial LLC now owns 117,994 shares of the real estate investment trust's stock valued at $1,396,000 after acquiring an additional 18,682 shares during the period. JPMorgan Chase & Co. increased its stake in shares of Two Harbors Investments by 63.1% during the fourth quarter. JPMorgan Chase & Co. now owns 420,923 shares of the real estate investment trust's stock valued at $4,980,000 after acquiring an additional 162,781 shares during the period. Alliancebernstein L.P. increased its stake in shares of Two Harbors Investments by 7.1% during the fourth quarter. Alliancebernstein L.P. now owns 137,185 shares of the real estate investment trust's stock valued at $1,623,000 after acquiring an additional 9,090 shares during the period. Finally, Wells Fargo & Company MN increased its stake in shares of Two Harbors Investments by 30.1% during the fourth quarter. Wells Fargo & Company MN now owns 90,129 shares of the real estate investment trust's stock valued at $1,066,000 after acquiring an additional 20,853 shares during the period. Institutional investors own 64.19% of the company's stock.

Two Harbors Investments Stock Down 0.5%

Shares of NYSE TWO opened at $9.87 on Monday. Two Harbors Investments has a 12-month low of $9.67 and a 12-month high of $14.28. The company has a market cap of $1.03 billion, a P/E ratio of -2.77 and a beta of 1.25. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 1.08. The stock has a fifty day moving average price of $10.40 and a 200 day moving average price of $11.74.

Two Harbors Investments (NYSE:TWO - Get Free Report) last announced its earnings results on Monday, July 28th. The real estate investment trust reported $0.28 earnings per share for the quarter, meeting the consensus estimate of $0.28. The company had revenue of ($18.12) million during the quarter, compared to the consensus estimate of ($23.29) million. Two Harbors Investments had a positive return on equity of 9.39% and a negative net margin of 67.06%. Research analysts anticipate that Two Harbors Investments will post 0.81 EPS for the current fiscal year.

Two Harbors Investments Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 29th. Stockholders of record on Thursday, July 3rd were issued a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a dividend yield of 15.8%. The ex-dividend date of this dividend was Thursday, July 3rd. Two Harbors Investments's payout ratio is -43.82%.

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.

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