Two Harbors Investments (NYSE:TWO) Stock Price Crosses Above 200 Day Moving Average - Here's Why

Key Points

• Two Harbors shares crossed above its 200‑day moving average of $10.64, trading as high as $11.12 and last at $11.0950 on the day.
• Analysts are largely cautious — eight Hold and one Sell produce a MarketBeat consensus of Reduce with a $12.88 target, following several recent downgrades and mixed price‑target adjustments.
• The firm pays a quarterly dividend of $0.34 (annualized $1.36), implying a 12.3% yield, while recent quarterly EPS of $0.26 missed consensus estimates.

Two Harbors Investments Corp (NYSE:TWO - Get Free Report) shares crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $10.64 and traded as high as $11.12. Two Harbors Investments shares last traded at $11.0950, with a volume of 902,459 shares changing hands.

Wall Street Analysts Forecast Growth

Several research analysts have commented on TWO shares. UBS Group downgraded shares of Two Harbors Investments from a "buy" rating to a "neutral" rating and increased their price objective for the company from $11.00 to $14.00 in a report on Friday, January 23rd. Maxim Group downgraded shares of Two Harbors Investments from a "buy" rating to a "hold" rating in a report on Thursday, December 18th. JPMorgan Chase & Co. dropped their price objective on shares of Two Harbors Investments from $13.50 to $12.50 and set a "neutral" rating for the company in a report on Wednesday, February 4th. Weiss Ratings reissued a "sell (d)" rating on shares of Two Harbors Investments in a report on Monday, December 29th. Finally, Zacks Research raised shares of Two Harbors Investments from a "strong sell" rating to a "hold" rating in a report on Monday, April 6th. Eight investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Two Harbors Investments currently has an average rating of "Reduce" and a consensus target price of $12.88.

Two Harbors Investments Price Performance

The firm's fifty day simple moving average is $10.63 and its 200 day simple moving average is $10.64. The company has a debt-to-equity ratio of 1.09, a quick ratio of 1.09 and a current ratio of 1.09. The firm has a market cap of $1.17 billion, a P/E ratio of -2.27 and a beta of 1.08.

Two Harbors Investments (NYSE:TWO - Get Free Report) last announced its earnings results on Monday, February 2nd. The real estate investment trust reported $0.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.30 by ($0.04). The business had revenue of $182.18 million for the quarter, compared to analysts' expectations of ($15.44) million. Two Harbors Investments had a negative net margin of 109.90% and a positive return on equity of 12.00%. As a group, analysts forecast that Two Harbors Investments Corp will post 0.81 earnings per share for the current year.

Two Harbors Investments Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Thursday, April 2nd were given a $0.34 dividend. This represents a $1.36 dividend on an annualized basis and a yield of 12.3%. The ex-dividend date of this dividend was Thursday, April 2nd. Two Harbors Investments's dividend payout ratio is -27.81%.

Institutional Trading of Two Harbors Investments

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TWO. AQR Capital Management LLC purchased a new stake in Two Harbors Investments in the 1st quarter worth about $344,000. Millennium Management LLC raised its position in Two Harbors Investments by 10.6% in the 1st quarter. Millennium Management LLC now owns 1,206,549 shares of the real estate investment trust's stock worth $16,119,000 after purchasing an additional 115,698 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in Two Harbors Investments by 24.6% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 144,670 shares of the real estate investment trust's stock worth $1,933,000 after purchasing an additional 28,535 shares during the period. Intech Investment Management LLC raised its position in Two Harbors Investments by 54.4% in the 1st quarter. Intech Investment Management LLC now owns 91,847 shares of the real estate investment trust's stock worth $1,227,000 after purchasing an additional 32,361 shares during the period. Finally, Norges Bank purchased a new stake in Two Harbors Investments in the 2nd quarter worth about $955,000. 64.19% of the stock is 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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