Two Harbors Investments (NYSE:TWO) Sees Unusually-High Trading Volume - Still a Buy?

Key Points

• Trading volume surged 24% to 3.61 million shares, while Two Harbors Investments’ stock slipped 0.3% to $12.055.
• Analyst sentiment remains mixed: the stock has a consensus “Hold” rating and an average price target of $12.75, with ratings ranging from Strong Buy to Sell.
• The mREIT met quarterly earnings expectations at $0.28 per share and declared a $0.34 quarterly dividend, equivalent to a 11.3% annualized yield.

Shares of Two Harbors Investments Corp (NYSE:TWO - Get Free Report) saw unusually-high trading volume on Monday . 3,610,001 shares changed hands during trading, an increase of 24% from the previous session's volume of 2,919,974 shares.The stock last traded at $12.0550 and had previously closed at $12.09.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the company. Compass Point reaffirmed a "neutral" rating and set a $13.00 target price on shares of Two Harbors Investments in a research report on Tuesday, June 9th. JPMorgan Chase & Co. boosted their price target on shares of Two Harbors Investments from $11.00 to $12.00 and gave the stock an "underweight" rating in a report on Friday, July 17th. Weiss Ratings restated a "sell (d+)" rating on shares of Two Harbors Investments in a research report on Friday, July 24th. Zacks Research upgraded 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 price objective on shares of Two Harbors Investments from $11.00 to $12.00 and gave the stock a "sector perform" rating in a research report on Monday, July 27th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $12.75.

Two Harbors Investments Stock Down 0.3%

The company has a debt-to-equity ratio of 0.85, a current ratio of 1.08 and a quick ratio of 1.08. The company has a fifty day moving average price of $12.25 and a 200 day moving average price of $11.71. The company has a market cap of $1.27 billion, a PE ratio of -16.29 and a beta of 1.04.

Two Harbors Investments (NYSE:TWO - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The real estate investment trust reported $0.28 earnings per share for the quarter, meeting analysts' consensus estimates of $0.28. The business had revenue of $247.57 million for the quarter, compared to the consensus estimate of $9.45 million. Two Harbors Investments had a positive return on equity of 12.79% and a negative net margin of 6.09%. As a group, analysts anticipate that Two Harbors Investments Corp will post 0.89 EPS 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 dividend on an annualized basis 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 currently -66.22%.

Hedge Funds Weigh In On Two Harbors Investments

Institutional investors and hedge funds have recently modified their holdings of the company. Quarry LP grew its position in shares of Two Harbors Investments by 695.6% during the 3rd quarter. Quarry LP now owns 3,421 shares of the real estate investment trust's stock worth $34,000 after buying an additional 2,991 shares in the last quarter. Smartleaf Asset Management LLC grew its holdings in Two Harbors Investments by 34.5% during 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 purchased a new position in Two Harbors Investments during the 3rd quarter valued at about $42,000. Ballast Advisors LLC purchased a new position in Two Harbors Investments during the 1st quarter valued at about $50,000. Finally, Kemnay Advisory Services Inc. bought a new stake in shares of Two Harbors Investments in the 4th quarter valued at about $68,000. 64.19% of the stock is currently owned by hedge funds and other 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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