Two Harbors Investments (NYSE:TWO) Issues Quarterly Earnings Results, Hits Expectations

Key Points

• Two Harbors Investments reported quarterly earnings of $0.28 per share, exactly meeting analysts' expectations.
• The company has announced a dividend cut with a quarterly payment of $0.39, leading to an annualized yield of 15.06%.
• Institutional investors own approximately 64.19% of Two Harbors Investments, indicating strong interest from large funds.

Two Harbors Investments (NYSE:TWO - Get Free Report) announced its earnings results on Monday. The real estate investment trust reported $0.28 earnings per share for the quarter, meeting the consensus estimate of $0.28, Zacks reports. The business had revenue of ($18.12) million during the quarter, compared to the consensus estimate of ($23.29) million. Two Harbors Investments had a negative net margin of 67.06% and a positive return on equity of 9.39%.

Two Harbors Investments Stock Performance

Shares of NYSE:TWO traded down $0.04 on Friday, reaching $9.71. 816,241 shares of the company's stock were exchanged, compared to its average volume of 1,668,604. The firm has a market capitalization of $1.01 billion, a price-to-earnings ratio of -2.73 and a beta of 1.26. Two Harbors Investments has a fifty-two week low of $9.70 and a fifty-two week high of $14.28. The business's 50-day moving average is $10.52 and its two-hundred day moving average is $11.82. The company has a quick ratio of 1.05, a current ratio of 1.07 and a debt-to-equity ratio of 1.08.

Two Harbors Investments Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, July 29th. Shareholders 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 16.1%. The ex-dividend date of this dividend was Thursday, July 3rd. Two Harbors Investments's dividend payout ratio is -43.82%.

Analysts Set New Price Targets

Several research analysts have recently weighed in on TWO shares. Maxim Group decreased 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 research note on Tuesday. JPMorgan Chase & Co. reduced their price objective on shares of Two Harbors Investments from $12.50 to $10.50 and set a "neutral" rating on the stock in a research note on Wednesday, April 16th. Keefe, Bruyette & Woods increased their price objective on shares of Two Harbors Investments from $12.95 to $13.25 and gave the company a "market perform" rating in a research note on Wednesday, April 30th. Royal Bank Of Canada reduced their price objective on shares of Two Harbors Investments from $13.00 to $12.00 and set a "sector perform" rating on the stock in a research note on Wednesday, May 28th. Finally, Citizens Jmp reiterated a "market perform" rating on shares of Two Harbors Investments in a research note on Thursday, July 3rd. One research analyst has rated the stock with a sell rating, five have given a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $12.88.

Institutional Trading of Two Harbors Investments

A number of institutional investors and hedge funds have recently modified their holdings of the business. AQR Capital Management LLC acquired a new stake in shares of Two Harbors Investments during the first quarter worth $344,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Two Harbors Investments by 24.6% in 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 valued at $1,933,000 after purchasing an additional 28,535 shares during the last quarter. Intech Investment Management LLC lifted its position in Two Harbors Investments by 54.4% in the 1st quarter. Intech Investment Management LLC now owns 91,847 shares of the real estate investment trust's stock valued at $1,227,000 after purchasing an additional 32,361 shares during the last quarter. Finally, Millennium Management LLC lifted its position in Two Harbors Investments by 10.6% in the 1st quarter. Millennium Management LLC now owns 1,206,549 shares of the real estate investment trust's stock valued at $16,119,000 after purchasing an additional 115,698 shares during the last quarter. 64.19% of the stock is owned by institutional investors and hedge funds.

About Two Harbors Investments

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.