Two Harbors Investments (NYSE:TWO) Sets New 52-Week High - Time to Buy?

Key Points

• Two Harbors Investments hit a new 52-week high at $12.18, up from its previous close of $12.05, with a market capitalization of approximately $1.28 billion.
• Analyst sentiment remains mixed but leans neutral: the consensus rating is Hold, with an average price target of $12.75. Ratings range from Strong Buy to Sell.
• The mortgage REIT met quarterly earnings expectations at $0.28 per share and announced a $0.34 quarterly dividend, equivalent to a 11.2% annualized yield; institutional investors own 64.19% of its stock.

Two Harbors Investments Corp (NYSE:TWO - Get Free Report) shares reached a new 52-week high during mid-day trading on Monday . The company traded as high as $12.18 and last traded at $12.18, with a volume of 51884 shares trading hands. The stock had previously closed at $12.05.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the company. Compass Point restated a "neutral" rating and issued a $13.00 price target on shares of Two Harbors Investments in a research note on Tuesday, June 9th. Weiss Ratings upgraded shares of Two Harbors Investments from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, August 7th. Zacks Research upgraded shares of Two Harbors Investments from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, July 21st. Royal Bank Of Canada boosted their price objective on Two Harbors Investments from $11.00 to $12.00 and gave the stock a "sector perform" rating in a report on Monday, July 27th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Two Harbors Investments from $11.00 to $12.00 and gave the company an "underweight" rating in a report on Friday, July 17th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $12.75.

Two Harbors Investments Stock Performance

The firm has a market capitalization of $1.28 billion, a price-to-earnings ratio of -16.46 and a beta of 1.04. The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 0.85. The stock's 50-day moving average is $12.14 and its 200-day moving average is $11.59.

Two Harbors Investments (NYSE:TWO - Get Free Report) last issued its 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. Two Harbors Investments had a negative net margin of 6.09% and a positive return on equity of 12.79%. The firm had revenue of $247.57 million for the quarter, compared to analyst estimates of $9.45 million. On average, analysts predict that Two Harbors Investments Corp will post 0.89 EPS for the current fiscal year.

Two Harbors Investments Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Thursday, July 2nd were given a $0.34 dividend. The ex-dividend date of this dividend was Thursday, July 2nd. This represents a $1.36 annualized dividend and a dividend yield of 11.2%. Two Harbors Investments's dividend payout ratio (DPR) is -64.86%.

Institutional Trading of Two Harbors Investments

Several hedge funds have recently modified their holdings of the stock. Smartleaf Asset Management LLC grew its stake in 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 valued at $40,000 after buying an additional 981 shares in the last quarter. Osaic Holdings Inc. grew its position in shares of Two Harbors Investments by 11.1% in the second quarter. Osaic Holdings Inc. now owns 13,130 shares of the real estate investment trust's stock valued at $142,000 after purchasing an additional 1,309 shares in the last quarter. Janney Montgomery Scott LLC raised its stake in shares of Two Harbors Investments by 12.2% during the 4th quarter. Janney Montgomery Scott LLC now owns 15,317 shares of the real estate investment trust's stock valued at $161,000 after purchasing an additional 1,663 shares during the period. JNBA Financial Advisors purchased a new stake in Two Harbors Investments during the 2nd quarter worth about $48,000. Finally, GAMMA Investing LLC lifted its holdings in Two Harbors Investments by 37.8% during the 2nd quarter. GAMMA Investing LLC now owns 7,162 shares of the real estate investment trust's stock worth $89,000 after purchasing an additional 1,964 shares in the last quarter. 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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