Two Harbors Investments (NYSE:TWO) Sets New 52-Week Low - Should You Sell?

Key Points

• Two Harbors Investments hit a new 52-week low of $12.03, below its 50-day moving average of $12.22, while its 200-day average stands at $11.69.
• Analyst sentiment remains mixed: the stock has a consensus “Hold” rating and a $12.75 average price target, with ratings ranging from Strong Buy to Sell.
• The company met quarterly earnings expectations at $0.28 per share and maintains a quarterly dividend of $0.34, representing an annualized yield of approximately 11.3%.

Two Harbors Investments Corp (NYSE:TWO - Get Free Report) shares hit a new 52-week low during mid-day trading on Thursday . The stock traded as low as $12.03 and last traded at $12.0450, with a volume of 64648 shares trading hands. The stock had previously closed at $12.03.

Analyst Upgrades and Downgrades

Several research firms have weighed in on TWO. Zacks Research upgraded Two Harbors Investments from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, July 21st. Weiss Ratings restated a "sell (d+)" rating on shares of Two Harbors Investments in a research report on Friday, July 24th. JPMorgan Chase & Co. raised their target price 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. Compass Point reiterated a "neutral" rating and issued a $13.00 price target on shares of Two Harbors Investments in a research note on Tuesday, June 9th. Finally, Royal Bank Of Canada boosted their price target on shares of Two Harbors Investments from $11.00 to $12.00 and gave the stock a "sector perform" rating in a research note on Monday, July 27th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $12.75.

Two Harbors Investments Price Performance

The company has a quick ratio of 1.08, a current ratio of 1.08 and a debt-to-equity ratio of 0.85. The company has a market capitalization of $1.27 billion, a PE ratio of -16.28 and a beta of 1.04. The firm's 50 day simple moving average is $12.22 and its 200 day simple moving average is $11.69.

Two Harbors Investments (NYSE:TWO - Get Free Report) last announced its earnings results on Tuesday, July 28th. The real estate investment trust reported $0.28 earnings per share for the quarter, meeting the consensus estimate 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 negative net margin of 6.09% and a positive return on equity of 12.79%. As a group, research analysts anticipate that Two Harbors Investments Corp will post 0.89 EPS for the current fiscal year.

Two Harbors Investments Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Thursday, July 2nd were issued a dividend of $0.34 per share. This represents a $1.36 annualized dividend and a yield of 11.3%. The ex-dividend date was Thursday, July 2nd. Two Harbors Investments's dividend payout ratio is presently -66.22%.

Institutional Trading of Two Harbors Investments

Institutional investors have recently added to or reduced their stakes in the company. GAMMA Investing LLC boosted its position in shares of Two Harbors Investments by 37.8% during the second quarter. GAMMA Investing LLC now owns 7,162 shares of the real estate investment trust's stock valued at $89,000 after buying an additional 1,964 shares during the period. Ballast Advisors LLC bought a new position in shares of Two Harbors Investments during the first quarter valued at approximately $50,000. Amundi raised its holdings in shares of Two Harbors Investments by 63.9% in the first quarter. Amundi now owns 19,420 shares of the real estate investment trust's stock worth $222,000 after buying an additional 7,568 shares during the period. California State Teachers Retirement System raised its holdings in shares of Two Harbors Investments by 47.7% in the first quarter. California State Teachers Retirement System now owns 141,286 shares of the real estate investment trust's stock worth $1,613,000 after buying an additional 45,602 shares during the period. Finally, Quantinno Capital Management LP lifted its stake in shares of Two Harbors Investments by 243.0% during the 1st quarter. Quantinno Capital Management LP now owns 139,717 shares of the real estate investment trust's stock worth $1,596,000 after acquiring an additional 98,987 shares during 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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