Two Harbors Investments (NYSE:TWO) Reaches New 12-Month Low - Here's What Happened

Key Points

• Two Harbors Investments has reached a new 12-month low, trading as low as $9.49, with the current price at $9.58, indicating a significant decline in its stock value.
• The company's quarterly earnings report revealed a loss of $18.67 million, alongside a negative profit margin of 67.06% and an estimated EPS of 0.81 for the current year.
• Analysts have mixed ratings on the stock, with three Buy ratings, five Hold ratings, and one Sell rating, reflecting uncertainty about the company's future performance; the consensus price target stands at $12.43.

Two Harbors Investments Corp (NYSE:TWO - Get Free Report) hit a new 52-week low during mid-day trading on Friday . The stock traded as low as $9.49 and last traded at $9.58, with a volume of 136578 shares traded. The stock had previously closed at $9.52.

Analyst Ratings Changes

TWO has been the topic of several research reports. Citizens Jmp reiterated a "market perform" rating on shares of Two Harbors Investments in a research report on Thursday, July 3rd. JMP Securities reiterated a "market perform" rating on shares of Two Harbors Investments in a research report on Thursday, July 3rd. Maxim Group reduced their price target on shares of Two Harbors Investments from $15.00 to $12.00 and set a "buy" rating on the stock in a research report on Tuesday, July 29th. UBS Group dropped their price objective on Two Harbors Investments from $12.00 to $11.00 and set a "buy" rating for the company in a report on Wednesday, September 3rd. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of Two Harbors Investments in a report on Wednesday, October 8th. Three analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Two Harbors Investments currently has an average rating of "Hold" and a consensus price target of $12.43.

Two Harbors Investments Trading Up 0.7%

The stock has a market cap of $998.28 million, a price-to-earnings ratio of -2.69 and a beta of 1.28. The company has a debt-to-equity ratio of 1.08, a quick ratio of 1.07 and a current ratio of 1.07. The business has a 50-day simple moving average of $9.94 and a two-hundred day simple moving average of $10.60.

Two Harbors Investments (NYSE:TWO - Get Free Report) last released its quarterly earnings data on Monday, March 7th. The real estate investment trust reported $0.24 EPS for the quarter. The company had revenue of ($18.67) million during the quarter. Two Harbors Investments had a positive return on equity of 9.39% and a negative net margin of 67.06%. As a group, research analysts forecast that Two Harbors Investments Corp will post 0.81 EPS for the current year.

Two Harbors Investments Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 29th. Stockholders of record on Friday, October 3rd will be issued a $0.34 dividend. This represents a $1.36 annualized dividend and a dividend yield of 14.2%. The ex-dividend date of this dividend is Friday, October 3rd. Two Harbors Investments's dividend payout ratio is presently -38.20%.

Insider Activity at Two Harbors Investments

In other news, CIO Nicholas Letica sold 8,654 shares of the stock in a transaction that occurred on Monday, August 18th. The stock was sold at an average price of $10.02, for a total value of $86,713.08. Following the completion of the sale, the executive owned 160,281 shares of the company's stock, valued at approximately $1,606,015.62. This represents a 5.12% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 0.70% of the company's stock.

Institutional Investors Weigh In On Two Harbors Investments

A number of large investors have recently added to or reduced their stakes in the business. Allspring Global Investments Holdings LLC raised its stake in Two Harbors Investments by 1.7% in the 2nd quarter. Allspring Global Investments Holdings LLC now owns 5,240,983 shares of the real estate investment trust's stock valued at $57,074,000 after acquiring an additional 88,518 shares during the period. Balyasny Asset Management L.P. raised its stake in Two Harbors Investments by 490.7% in the 2nd quarter. Balyasny Asset Management L.P. now owns 3,583,939 shares of the real estate investment trust's stock valued at $38,599,000 after acquiring an additional 2,977,196 shares during the period. Invesco Ltd. raised its stake in Two Harbors Investments by 44.5% in the 2nd quarter. Invesco Ltd. now owns 2,649,977 shares of the real estate investment trust's stock valued at $28,540,000 after acquiring an additional 815,931 shares during the period. Millennium Management LLC raised its stake 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 acquiring an additional 115,698 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Two Harbors Investments by 7.8% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 959,992 shares of the real estate investment trust's stock valued at $10,339,000 after acquiring an additional 69,365 shares during the period. Institutional investors own 64.19% of the company's stock.

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.

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