Two Harbors Investments (NYSE:TWO) Releases Quarterly Earnings Results, Hits Estimates

Key Points

• Two Harbors Investments met earnings expectations, reporting quarterly EPS of $0.28, while revenue reached $247.57 million. The company posted a 13.62% return on equity but a negative net margin of 87.72%.
• Shares slipped 0.1% to $12.11, while the company announced a quarterly dividend of $0.34 per share, equivalent to a 11.2% annualized yield.
• Institutional investors own 64.19% of the stock, and analysts maintain a consensus “Hold” rating with an average price target of $12.60.

Two Harbors Investments (NYSE:TWO - Get Free Report) issued its quarterly earnings data on Tuesday. The real estate investment trust reported $0.28 earnings per share for the quarter, meeting analysts' consensus estimates of $0.28, FiscalAI reports. Two Harbors Investments had a positive return on equity of 13.62% and a negative net margin of 87.72%.The business had revenue of $247.57 million during the quarter, compared to analysts' expectations of $9.45 million.

Two Harbors Investments Trading Down 0.1%

Shares of Two Harbors Investments stock traded down $0.01 during trading hours on Tuesday, reaching $12.11. 1,990,336 shares of the company's stock were exchanged, compared to its average volume of 2,894,809. The company has a fifty day moving average of $12.28 and a 200-day moving average of $11.69. Two Harbors Investments has a 52-week low of $8.78 and a 52-week high of $14.17. The firm has a market capitalization of $1.27 billion, a price-to-earnings ratio of -3.17 and a beta of 1.03. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.91.

Two Harbors Investments Dividend Announcement

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

Institutional Trading of Two Harbors Investments

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. AQR Capital Management LLC purchased a new position in shares of Two Harbors Investments during the 1st quarter worth about $344,000. Millennium Management LLC increased its position in Two Harbors Investments by 10.6% during the first quarter. Millennium Management LLC now owns 1,206,549 shares of the real estate investment trust's stock worth $16,119,000 after purchasing an additional 115,698 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in Two Harbors Investments by 24.6% during the first 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 purchasing an additional 28,535 shares during the last quarter. Intech Investment Management LLC boosted its holdings in shares of 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, Norges Bank purchased a new stake in shares of Two Harbors Investments during the 2nd quarter valued at $955,000. Hedge funds and other institutional investors own 64.19% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. Compass Point reiterated a "neutral" rating and set a $13.00 target price on shares of Two Harbors Investments in a report on Tuesday, June 9th. JPMorgan Chase & Co. increased their price target on shares of Two Harbors Investments from $11.00 to $12.00 and gave the company an "underweight" rating in a research note on Friday, July 17th. Weiss Ratings upgraded Two Harbors Investments from a "sell (d)" rating to a "sell (d+)" rating in a research report on Wednesday, April 29th. Zacks Research raised shares of Two Harbors Investments from a "hold" rating to a "strong-buy" rating in a report on Tuesday, July 21st. Finally, Royal Bank Of Canada lifted their target price on Two Harbors Investments from $11.00 to $12.00 and gave the company a "sector perform" rating in a research note on Monday. One research analyst has rated the stock with a Strong Buy rating, four have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $12.60.

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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