Two Harbors Investments (NYSE:TWO) Upgraded to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded Two Harbors Investments from hold to strong-buy, making it the most bullish call in the latest analyst updates.
• Overall analyst sentiment remains mixed: the stock has an average Hold rating and a consensus price target of $12.75, with other firms including Compass Point and JPMorgan maintaining cautious views.
• Two Harbors recently beat earnings expectations, reporting $0.34 EPS versus $0.21 expected, while institutional investors continue to increase their stakes and now own 64.19% of the company.

Two Harbors Investments (NYSE:TWO - Get Free Report) was upgraded by investment analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a note issued to investors on Tuesday,Zacks.com reports.

Other analysts have also issued research reports about the company. Compass Point reissued a "neutral" rating and set a $13.00 price objective on shares of Two Harbors Investments in a research note on Tuesday, June 9th. JPMorgan Chase & Co. upped their price target 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. Finally, Weiss Ratings raised shares of Two Harbors Investments from a "sell (d)" rating to a "sell (d+)" rating in a research report on Wednesday, April 29th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $12.75.

Two Harbors Investments Trading Down 0.0%

NYSE TWO opened at $12.10 on Tuesday. Two Harbors Investments has a 1-year low of $8.78 and a 1-year high of $14.17. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.91. The stock has a 50-day moving average of $12.31 and a 200-day moving average of $11.66. The firm has a market cap of $1.27 billion, a PE ratio of -3.17 and a beta of 1.03.

Two Harbors Investments (NYSE:TWO - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The real estate investment trust reported $0.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.21 by $0.13. The business had revenue of $225.08 million for the quarter, compared to analyst estimates of $2.33 million. Two Harbors Investments had a positive return on equity of 13.62% and a negative net margin of 87.72%. As a group, sell-side analysts forecast that Two Harbors Investments will post 0.89 EPS for the current year.

Institutional Trading of Two Harbors Investments

A number of hedge funds have recently modified their holdings of TWO. GAMMA Investing LLC increased its stake in shares of Two Harbors Investments by 37.8% in the 2nd quarter. GAMMA Investing LLC now owns 7,162 shares of the real estate investment trust's stock worth $89,000 after acquiring an additional 1,964 shares in the last quarter. Ballast Advisors LLC bought a new stake in Two Harbors Investments during the first quarter worth about $50,000. Amundi grew its holdings in 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 purchasing an additional 7,568 shares during the period. California State Teachers Retirement System grew its holdings in 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 purchasing an additional 45,602 shares during the period. Finally, Quantinno Capital Management LP grew its holdings in Two Harbors Investments by 243.0% in the first quarter. Quantinno Capital Management LP now owns 139,717 shares of the real estate investment trust's stock worth $1,596,000 after purchasing an additional 98,987 shares during the period. Institutional investors own 64.19% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.