Two Harbors Investments (NYSE:TWO) Trading 7.9% Higher - Here's Why

Key Points

• Two Harbors stock jumped 7.9% intraday to about $11.80 on Friday, with roughly 1.94 million shares traded (about 35% below its average daily volume).
• Analysts' consensus rating is a "Hold" with a $11.96 target (one Buy, seven Holds, one Sell), reflecting mixed upgrades and downgrades in recent months.
• The company announced a quarterly dividend of $0.34 (annualized $1.36) for an 11.0% yield with an ex-dividend date of Jan. 5, while insiders have sold about 124,307 shares (~$1.42M) in the last three months.

Two Harbors Investments Corp (NYSE:TWO - Get Free Report)'s share price was up 7.9% during trading on Friday . The stock traded as high as $11.99 and last traded at $11.8010. Approximately 1,942,796 shares were traded during mid-day trading, a decline of 35% from the average daily volume of 2,985,057 shares. The stock had previously closed at $10.94.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the stock. Wall Street Zen upgraded shares of Two Harbors Investments from a "sell" rating to a "hold" rating in a report on Saturday, November 1st. Zacks Research lowered shares of Two Harbors Investments from a "strong-buy" rating to a "hold" rating in a research report on Monday, December 29th. Maxim Group downgraded shares of Two Harbors Investments from a "buy" rating to a "hold" rating in a research note on Thursday, December 18th. JPMorgan Chase & Co. boosted their price target on Two Harbors Investments from $9.50 to $10.00 and gave the company a "neutral" rating in a report on Monday, October 20th. Finally, Weiss Ratings restated a "sell (d)" rating on shares of Two Harbors Investments in a report on Monday, December 29th. One investment analyst has rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Two Harbors Investments presently has an average rating of "Hold" and a consensus target price of $11.96.

Two Harbors Investments Stock Up 12.7%

The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 1.13. The firm has a market cap of $1.28 billion, a PE ratio of -4.97 and a beta of 1.19. The business's 50-day simple moving average is $10.20 and its 200 day simple moving average is $10.09.

Two Harbors Investments (NYSE:TWO - Get Free Report) last announced its quarterly earnings results on Monday, March 7th. The real estate investment trust reported $0.24 earnings per share for the quarter. The firm had revenue of ($18.67) million during the quarter. Two Harbors Investments had a negative net margin of 44.10% and a positive return on equity of 11.92%. As a group, equities research analysts expect that Two Harbors Investments Corp will post 0.81 earnings per share for the current year.

Two Harbors Investments Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, January 29th. Shareholders of record on Monday, January 5th will be issued a dividend of $0.34 per share. The ex-dividend date is Monday, January 5th. This represents a $1.36 dividend on an annualized basis and a yield of 11.0%. Two Harbors Investments's dividend payout ratio is currently -54.40%.

Insider Buying and Selling at Two Harbors Investments

In related news, CIO Nicholas Letica sold 55,488 shares of the firm's stock in a transaction dated Friday, December 19th. The stock was sold at an average price of $11.42, for a total transaction of $633,672.96. Following the sale, the executive owned 166,507 shares of the company's stock, valued at $1,901,509.94. This trade represents a 25.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Alecia Hanson sold 10,768 shares of Two Harbors Investments stock in a transaction dated Friday, December 19th. The shares were sold at an average price of $11.41, for a total value of $122,862.88. Following the completion of the transaction, the insider owned 45,288 shares in the company, valued at $516,736.08. This trade represents a 19.21% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 124,307 shares of company stock worth $1,420,130. 0.70% of the stock is currently owned by company insiders.

Institutional Trading of Two Harbors Investments

Hedge funds have recently modified their holdings of the company. AQR Capital Management LLC purchased a new position in shares of Two Harbors Investments in the 1st quarter worth approximately $344,000. Millennium Management LLC boosted its stake in Two Harbors Investments by 10.6% in the first quarter. Millennium Management LLC now owns 1,206,549 shares of the real estate investment trust's stock valued at $16,119,000 after acquiring an additional 115,698 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Two Harbors Investments by 24.6% in the first 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 valued at $1,933,000 after acquiring an additional 28,535 shares in the last quarter. Intech Investment Management LLC grew its holdings in Two Harbors Investments by 54.4% in the first 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 last quarter. Finally, Strs Ohio acquired a new position in shares of Two Harbors Investments during the first quarter worth $255,000. 64.19% of the stock is owned by hedge funds and other institutional investors.

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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