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

Key Points

• Analysts have a consensus “Hold” rating on Two Harbors Investments, with two sell ratings, three hold ratings, and one strong-buy rating. The average 12-month price target is $12.75, compared with the stock’s recent price of $12.11.
• Institutional investors increased their exposure, and hedge funds and other institutions now own 64.19% of the company’s stock.
• Two Harbors reported quarterly EPS of $0.34, exceeding the $0.21 analyst consensus, and maintains a quarterly dividend of $0.34 per share—an annualized yield of approximately 11.2%.

Two Harbors Investments Corp (NYSE:TWO - Get Free Report) has been given a consensus recommendation of "Hold" by the six ratings firms that are currently covering the firm, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a sell rating, three have issued a hold rating and one has given a strong buy rating to the company. The average 1-year price target among brokerages that have covered the stock in the last year is $12.75.

A number of analysts have weighed in on the company. Weiss Ratings upgraded Two Harbors Investments from a "sell (d)" rating to a "sell (d+)" rating in a research note on Wednesday, April 29th. JPMorgan Chase & Co. upped their price target on shares of Two Harbors Investments from $11.00 to $12.00 and gave the stock an "underweight" rating in a report on Friday, July 17th. Compass Point restated a "neutral" rating and issued a $13.00 price target on shares of Two Harbors Investments in a report on Tuesday, June 9th. Finally, Zacks Research raised shares of Two Harbors Investments from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, July 21st.

Institutional Trading of Two Harbors Investments

Large investors have recently modified their holdings of the company. AQR Capital Management LLC purchased a new position in Two Harbors Investments during the 1st quarter worth $344,000. Millennium Management LLC grew its position in shares of Two Harbors Investments by 10.6% during the 1st quarter. Millennium Management LLC now owns 1,206,549 shares of the real estate investment trust's stock worth $16,119,000 after buying an additional 115,698 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of Two Harbors Investments by 24.6% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 144,670 shares of the real estate investment trust's stock worth $1,933,000 after buying an additional 28,535 shares in the last quarter. Intech Investment Management LLC increased its stake in shares of Two Harbors Investments by 54.4% during the first quarter. Intech Investment Management LLC now owns 91,847 shares of the real estate investment trust's stock valued at $1,227,000 after buying an additional 32,361 shares during the period. Finally, Norges Bank purchased a new position in shares of Two Harbors Investments during the second quarter valued at $955,000. Hedge funds and other institutional investors own 64.19% of the company's stock.

Two Harbors Investments Trading Up 0.0%

TWO opened at $12.11 on Monday. The company has a debt-to-equity ratio of 0.91, a quick ratio of 1.06 and a current ratio of 1.06. The stock's 50 day moving average price is $12.29 and its 200-day moving average price is $11.68. Two Harbors Investments has a one year low of $8.78 and a one year high of $14.17. The stock has a market cap of $1.27 billion, a price-to-earnings ratio of -3.17 and a beta of 1.03.

Two Harbors Investments (NYSE:TWO - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The real estate investment trust reported $0.34 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.21 by $0.13. Two Harbors Investments had a positive return on equity of 13.62% and a negative net margin of 87.72%.The firm had revenue of $225.08 million during the quarter, compared to analyst estimates of $2.33 million. On average, equities analysts forecast that Two Harbors Investments will post 0.89 EPS for the current year.

Two Harbors Investments Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Thursday, July 2nd were given a dividend of $0.34 per share. The ex-dividend date of this dividend was Thursday, July 2nd. This represents a $1.36 dividend on an annualized basis and a dividend yield of 11.2%. Two Harbors Investments's dividend payout ratio (DPR) is -35.60%.

About Two Harbors Investments

Two Harbors Investments Corp. is a mortgage real estate investment trust (mREIT) that primarily invests in residential mortgage-backed securities (RMBS) issued or guaranteed by government-sponsored enterprises, as well as non-agency residential mortgage loans, mortgage servicing rights and credit risk transfer securities. The company seeks to generate attractive risk-adjusted returns for its shareholders by employing leverage to enhance net interest income derived from its portfolio of high-quality fixed-income assets.

Headquartered in Minneapolis, Minnesota, Two Harbors operates through a self-managed platform that combines portfolio management, risk-management and securitization expertise.

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