Two Harbors Investments (NYSE:TWO) Announces Quarterly Earnings Results

Key Points

• Two Harbors beat estimates — reported Q EPS of $0.34 versus $0.25 expected and revenue of $225.08M, despite a negative net margin of 109.9% and a positive ROE of 12.0%.
• The company paid a quarterly dividend of $0.34 (annualized $1.36), producing a 12.3% yield; the dividend was paid April 15 with an ex-dividend date of April 2.
• Shares traded at $11.03 post-report; analyst consensus is a "Reduce" rating with a $12.45 target and the stock carries a market cap of about $1.16B.

Two Harbors Investments (NYSE:TWO - Get Free Report) posted its earnings results on Tuesday. The real estate investment trust reported $0.34 EPS for the quarter, topping analysts' consensus estimates of $0.25 by $0.09, FiscalAI reports. The firm had revenue of $225.08 million during the quarter, compared to analysts' expectations of $2.63 million. Two Harbors Investments had a negative net margin of 109.90% and a positive return on equity of 12.00%.

Two Harbors Investments Trading Up 0.0%

Shares of TWO traded up $0.01 during trading hours on Tuesday, hitting $11.03. 1,060,529 shares of the stock were exchanged, compared to its average volume of 3,521,555. Two Harbors Investments has a fifty-two week low of $8.78 and a fifty-two week high of $14.17. The business has a 50-day moving average of $10.60 and a 200-day moving average of $10.71. The firm has a market capitalization of $1.16 billion, a P/E ratio of -2.25 and a beta of 1.08. The company has a debt-to-equity ratio of 1.09, a current ratio of 1.09 and a quick ratio of 1.09.

Two Harbors Investments Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Thursday, April 2nd were given a dividend of $0.34 per share. The ex-dividend date was Thursday, April 2nd. This represents a $1.36 annualized dividend and a dividend yield of 12.3%. Two Harbors Investments's dividend payout ratio is -27.81%.

Wall Street Analysts Forecast Growth

TWO has been the subject of several research reports. UBS Group downgraded shares of Two Harbors Investments from a "buy" rating to a "neutral" rating and increased their price objective for the company from $11.00 to $14.00 in a research note on Friday, January 23rd. Compass Point cut Two Harbors Investments from a "buy" rating to a "neutral" rating in a research note on Friday, March 27th. JPMorgan Chase & Co. lowered Two Harbors Investments from a "neutral" rating to an "underweight" rating and reduced their price objective for the stock from $12.50 to $11.00 in a research report on Thursday, April 16th. Zacks Research raised Two Harbors Investments from a "strong sell" rating to a "hold" rating in a report on Monday, April 6th. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of Two Harbors Investments in a research note on Monday, December 29th. Seven analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, Two Harbors Investments presently has an average rating of "Reduce" and a consensus target price of $12.45.

Institutional Trading of Two Harbors Investments

Large investors have recently bought and sold shares of the business. Smartleaf Asset Management LLC increased its position in Two Harbors Investments by 34.5% in the fourth quarter. Smartleaf Asset Management LLC now owns 3,825 shares of the real estate investment trust's stock worth $40,000 after buying an additional 981 shares during the last quarter. Osaic Holdings Inc. grew its stake in shares of Two Harbors Investments by 11.1% during the 2nd quarter. Osaic Holdings Inc. now owns 13,130 shares of the real estate investment trust's stock worth $142,000 after acquiring an additional 1,309 shares during the period. Janney Montgomery Scott LLC increased its holdings in Two Harbors Investments by 12.2% in the 4th quarter. Janney Montgomery Scott LLC now owns 15,317 shares of the real estate investment trust's stock worth $161,000 after acquiring an additional 1,663 shares during the last quarter. Commonwealth Equity Services LLC raised its stake in Two Harbors Investments by 14.7% in the 4th quarter. Commonwealth Equity Services LLC now owns 19,054 shares of the real estate investment trust's stock valued at $200,000 after acquiring an additional 2,441 shares during the period. Finally, Illinois Municipal Retirement Fund lifted its holdings in Two Harbors Investments by 5.0% during the fourth quarter. Illinois Municipal Retirement Fund now owns 56,571 shares of the real estate investment trust's stock valued at $594,000 after purchasing an additional 2,686 shares during the last quarter. 64.19% of the stock is currently owned by institutional investors and hedge funds.

Two Harbors Investments Company Profile

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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