Two Harbors Investments (NYSE:TWO) Hits New 52-Week Low - Here's Why

Two Harbors Investments Corp (NYSE:TWO - Get Free Report)'s stock price hit a new 52-week low during trading on Monday . The company traded as low as $10.15 and last traded at $10.15, with a volume of 675373 shares trading hands. The stock had previously closed at $10.28.

Analyst Upgrades and Downgrades

TWO has been the topic of a number of analyst reports. JPMorgan Chase & Co. lowered their target price on Two Harbors Investments from $12.50 to $10.50 and set a "neutral" rating on the stock in a report on Wednesday, April 16th. Royal Bank Of Canada lowered their target price on Two Harbors Investments from $13.00 to $12.00 and set a "sector perform" rating on the stock in a report on Wednesday, May 28th. Citizens Jmp reiterated a "market perform" rating on shares of Two Harbors Investments in a report on Thursday, July 3rd. JMP Securities reissued a "market perform" rating on shares of Two Harbors Investments in a research note on Thursday, July 3rd. Finally, Keefe, Bruyette & Woods increased their price target on Two Harbors Investments from $12.95 to $13.25 and gave the stock a "market perform" rating in a research note on Wednesday, April 30th. One analyst has rated the stock with a sell rating, five have given a hold rating and three have given a buy rating to the company. According to MarketBeat.com, Two Harbors Investments has a consensus rating of "Hold" and a consensus price target of $13.00.

Two Harbors Investments Stock Down 1.3%

The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.77. The firm has a market capitalization of $1.04 billion, a PE ratio of -19.62 and a beta of 1.26. The firm has a 50-day moving average of $10.89 and a two-hundred day moving average of $11.92.

Two Harbors Investments (NYSE:TWO - Get Free Report) last issued its earnings results on Monday, April 28th. The real estate investment trust reported $0.24 earnings per share for the quarter, missing the consensus estimate of $0.28 by ($0.04). The firm had revenue of ($20.33) million during the quarter, compared to analysts' expectations of ($28.53) million. Two Harbors Investments had a return on equity of 8.06% and a net margin of 3.50%. On average, equities research analysts forecast that Two Harbors Investments Corp will post 0.81 EPS for the current year.

Two Harbors Investments Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, July 29th. Investors of record on Thursday, July 3rd will be given a $0.39 dividend. This represents a $1.56 annualized dividend and a dividend yield of 15.59%. The ex-dividend date is Thursday, July 3rd. Two Harbors Investments's dividend payout ratio (DPR) is currently -305.88%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. CWM LLC raised its position in Two Harbors Investments by 68.4% in the first quarter. CWM LLC now owns 2,192 shares of the real estate investment trust's stock valued at $29,000 after purchasing an additional 890 shares during the period. Sterling Capital Management LLC raised its position in Two Harbors Investments by 818.5% in the fourth quarter. Sterling Capital Management LLC now owns 3,325 shares of the real estate investment trust's stock valued at $39,000 after purchasing an additional 2,963 shares during the period. Murphy & Mullick Capital Management Corp purchased a new position in Two Harbors Investments in the fourth quarter valued at about $40,000. Montag A & Associates Inc. raised its position in Two Harbors Investments by 29.2% in the first quarter. Montag A & Associates Inc. now owns 5,285 shares of the real estate investment trust's stock valued at $71,000 after purchasing an additional 1,193 shares during the period. Finally, Smartleaf Asset Management LLC raised its position in Two Harbors Investments by 233.0% in the first quarter. Smartleaf Asset Management LLC now owns 6,506 shares of the real estate investment trust's stock valued at $86,000 after purchasing an additional 4,552 shares during the period. 64.19% of the stock is owned by hedge funds and other institutional investors.

Two Harbors Investments Company Profile

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.