Two Harbors Investments (NYSE:TWO) Rating Increased to Hold at Zacks Research

Key Points

• Zacks upgraded Two Harbors Investments from a "strong sell" to a "hold," though the broader analyst consensus remains a "Reduce" rating with an average price target of $12.88 (eight Holds, one Sell).
• The company reported a quarterly EPS of $0.26, missing estimates of $0.30 and showing a negative net margin of 109.9%; shares traded around $10.96 (12‑month range $8.78–$14.17) with a market cap of about $1.15 billion.
• Two Harbors is a mortgage REIT focused on residential mortgage-backed securities and uses leverage to boost net interest income, with roughly 64% of the stock held by institutional investors.

Two Harbors Investments (NYSE:TWO - Get Free Report) was upgraded by equities researchers at Zacks Research from a "strong sell" rating to a "hold" rating in a note issued to investors on Monday,Zacks.com reports.

TWO has been the topic of a number of other research reports. Compass Point lowered Two Harbors Investments from a "buy" rating to a "hold" rating in a research report on Friday, March 27th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Two Harbors Investments in a report on Monday, December 29th. UBS Group downgraded Two Harbors Investments from a "buy" rating to a "neutral" rating and lifted their target price for the stock from $11.00 to $14.00 in a report on Friday, January 23rd. Maxim Group downgraded Two Harbors Investments from a "buy" rating to a "hold" rating in a report on Thursday, December 18th. Finally, JPMorgan Chase & Co. cut their target price on Two Harbors Investments from $13.50 to $12.50 and set a "neutral" rating on the stock in a report on Wednesday, February 4th. Eight analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Reduce" and an average target price of $12.88.

Two Harbors Investments Trading Down 0.5%

Shares of TWO stock opened at $10.96 on Monday. The firm has a market capitalization of $1.15 billion, a P/E ratio of -2.24 and a beta of 1.08. Two Harbors Investments has a twelve month low of $8.78 and a twelve month high of $14.17. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 1.09. The stock's fifty day simple moving average is $10.79 and its 200 day simple moving average is $10.59.

Two Harbors Investments (NYSE:TWO - Get Free Report) last issued its quarterly earnings data on Monday, February 2nd. The real estate investment trust reported $0.26 earnings per share for the quarter, missing analysts' consensus estimates of $0.30 by ($0.04). The firm had revenue of $182.18 million for the quarter, compared to the consensus estimate of ($15.44) million. Two Harbors Investments had a positive return on equity of 12.00% and a negative net margin of 109.90%. As a group, sell-side analysts predict that Two Harbors Investments will post 0.81 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Mowery & Schoenfeld Wealth Management LLC bought a new position in shares of Two Harbors Investments in the 3rd quarter worth about $25,000. Quarry LP raised its position in shares of Two Harbors Investments by 695.6% in the 3rd quarter. Quarry LP now owns 3,421 shares of the real estate investment trust's stock worth $34,000 after acquiring an additional 2,991 shares in the last quarter. Smartleaf Asset Management LLC raised its position in shares of Two Harbors Investments by 34.5% in the 4th quarter. Smartleaf Asset Management LLC now owns 3,825 shares of the real estate investment trust's stock worth $40,000 after acquiring an additional 981 shares in the last quarter. Advisory Services Network LLC bought a new position in shares of Two Harbors Investments in the 3rd quarter worth about $42,000. Finally, CWM LLC raised its position in shares of Two Harbors Investments by 456.0% in the 3rd quarter. CWM LLC now owns 5,465 shares of the real estate investment trust's stock worth $54,000 after acquiring an additional 4,482 shares in the last quarter. 64.19% of the stock is owned by institutional investors.

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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