Two Harbors Investments Corp (NYSE:TWO) Receives Average Rating of "Hold" from 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 recommendation of "Hold" from the nine analysts that are currently covering the firm, MarketBeat Ratings reports. Five analysts have rated the stock with a hold recommendation and four have given a buy recommendation to the company. The average twelve-month price target among brokers that have issued a report on the stock in the last year is $12.8750.

TWO has been the subject of a number of recent analyst reports. Maxim Group lowered their target price on shares of Two Harbors Investments from $15.00 to $12.00 and set a "buy" rating for the company in a report on Tuesday, July 29th. Citizens Jmp restated a "market perform" rating on shares of Two Harbors Investments in a report on Thursday, July 3rd. Wall Street Zen downgraded shares of Two Harbors Investments from a "hold" rating to a "sell" rating in a report on Wednesday, April 30th. Keefe, Bruyette & Woods boosted their target price on shares of Two Harbors Investments from $12.95 to $13.25 and gave the company a "market perform" rating in a report on Wednesday, April 30th. Finally, UBS Group decreased their price objective on shares of Two Harbors Investments from $13.00 to $12.00 and set a "buy" rating for the company in a research note on Thursday, July 10th.

Two Harbors Investments Trading Up 0.3%

Two Harbors Investments stock traded up $0.04 during trading on Monday, reaching $10.14. The company had a trading volume of 234,341 shares, compared to its average volume of 1,680,262. Two Harbors Investments has a 12-month low of $9.67 and a 12-month high of $14.28. The stock's 50 day moving average price is $10.36 and its two-hundred day moving average price is $11.69. The firm has a market capitalization of $1.06 billion, a price-to-earnings ratio of -2.85 and a beta of 1.25. The company has a debt-to-equity ratio of 1.08, a quick ratio of 1.07 and a current ratio of 1.07.

Two Harbors Investments (NYSE:TWO - Get Free Report) last released its earnings results on Monday, July 28th. The real estate investment trust reported $0.28 earnings per share (EPS) 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 firm had revenue of ($18.12) million during the quarter, compared to the consensus estimate of ($23.29) million. As a group, equities analysts expect that Two Harbors Investments will post 0.81 earnings per share for the current fiscal year.

Two Harbors Investments Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, July 29th. Shareholders of record on Thursday, July 3rd were paid a dividend of $0.39 per share. This represents a $1.56 annualized dividend and a yield of 15.4%. The ex-dividend date was Thursday, July 3rd. Two Harbors Investments's payout ratio is currently -43.82%.

Institutional Investors Weigh In On Two Harbors Investments

Several institutional investors have recently bought and sold shares of the business. Raymond James Financial Inc. purchased a new position in shares of Two Harbors Investments in the fourth quarter valued at $172,000. LPL Financial LLC boosted its stake in shares of Two Harbors Investments by 18.8% in 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 purchasing an additional 18,682 shares during the period. JPMorgan Chase & Co. boosted its stake in shares of Two Harbors Investments by 63.1% in 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 purchasing an additional 162,781 shares during the period. Alliancebernstein L.P. boosted its stake in shares of Two Harbors Investments by 7.1% in 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 purchasing an additional 9,090 shares during the period. Finally, Wells Fargo & Company MN boosted its stake in shares of Two Harbors Investments by 30.1% in 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 purchasing an additional 20,853 shares during the period. 64.19% of the stock is currently owned by hedge funds and other institutional investors.

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.