Two Harbors Investments (NYSE:TWO) Sees Strong Trading Volume - Time to Buy?

Key Points

• Trading volume rose 20% to 3.24 million shares, while Two Harbors Investments traded near $12.02. The stock has a $1.26 billion market capitalization and trades below its 50-day moving average but above its 200-day average.
• Analyst sentiment remains mixed but centers on “Hold”, with one Strong Buy, five Holds, and one Sell; the consensus price target is $12.75. Recent target increases from RBC and JPMorgan were to $12.00, while Compass Point maintained a $13.00 target.
• The mortgage REIT met quarterly earnings expectations at $0.28 per share and declared a $0.34 quarterly dividend, equating to a 11.3% annualized yield. Institutional investors own 64.19% of the company, including sizable positions from BlackRock and Millennium Management.

Shares of Two Harbors Investments Corp (NYSE:TWO - Get Free Report) saw strong trading volume on Tuesday . 3,242,028 shares changed hands during mid-day trading, an increase of 20% from the previous session's volume of 2,699,656 shares.The stock last traded at $12.0150 and had previously closed at $12.03.

Wall Street Analyst Weigh In

Several research analysts have commented on the stock. Weiss Ratings upgraded shares of Two Harbors Investments from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday. Compass Point reiterated a "neutral" rating and set a $13.00 price target on shares of Two Harbors Investments in a report on Tuesday, June 9th. Royal Bank Of Canada upped their target price on shares of Two Harbors Investments from $11.00 to $12.00 and gave the company a "sector perform" rating in a research note on Monday, July 27th. Zacks Research upgraded Two Harbors Investments from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, July 21st. Finally, JPMorgan Chase & Co. lifted their price target on shares of Two Harbors Investments from $11.00 to $12.00 and gave the stock an "underweight" rating in a research note on Friday, July 17th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Two Harbors Investments presently has an average rating of "Hold" and a consensus price target of $12.75.

Two Harbors Investments Price Performance

The company has a market cap of $1.26 billion, a P/E ratio of -16.21 and a beta of 1.04. The firm's 50-day moving average is $12.20 and its two-hundred day moving average is $11.65. The company has a debt-to-equity ratio of 0.85, a current ratio of 1.08 and a quick ratio of 1.08.

Two Harbors Investments (NYSE:TWO - Get Free Report) last posted its earnings results on Tuesday, July 28th. The real estate investment trust reported $0.28 earnings per share for the quarter, hitting analysts' consensus estimates of $0.28. The firm had revenue of $247.57 million for the quarter, compared to the consensus estimate of $9.45 million. Two Harbors Investments had a negative net margin of 6.09% and a positive return on equity of 12.79%. Analysts anticipate that Two Harbors Investments Corp will post 0.89 earnings per share for the current year.

Two Harbors Investments Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Thursday, July 2nd were given a $0.34 dividend. This represents a $1.36 annualized dividend and a dividend yield of 11.3%. The ex-dividend date of this dividend was Thursday, July 2nd. Two Harbors Investments's payout ratio is presently -64.86%.

Institutional Investors Weigh In On Two Harbors Investments

A number of institutional investors have recently added to or reduced their stakes in TWO. BlackRock Inc. acquired a new stake in Two Harbors Investments during the 2nd quarter valued at approximately $211,685,000. Balyasny Asset Management L.P. grew its position in shares of Two Harbors Investments by 490.7% during 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. Marshall Wace LLP purchased a new position in Two Harbors Investments during the fourth quarter worth approximately $23,886,000. Schonfeld Strategic Advisors LLC acquired a new stake in Two Harbors Investments in the fourth quarter valued at approximately $16,523,000. Finally, Millennium Management LLC grew its holdings in Two Harbors Investments by 45.3% in the third quarter. Millennium Management LLC now owns 4,535,534 shares of the real estate investment trust's stock valued at $44,766,000 after purchasing an additional 1,415,062 shares during the period. Institutional investors own 64.19% of the company's stock.

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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