Two Harbors Investments' (TWO) Neutral Rating Reaffirmed at Compass Point

Key Points

• Compass Point reaffirmed a Neutral rating on Two Harbors, while the broader analyst consensus is a "Reduce" (seven Holds, two Sells) with an average price target of $12.88.
• The stock traded down about 2.1% to $11.17 on heavy volume, leaving market capitalization near $1.17 billion and a 12‑month range of $8.78–$14.17.
• Two Harbors missed quarterly estimates with EPS of $0.26 vs. $0.30 expected and shows signs of financial strain (debt/equity ~1.09 and a negative net margin), while institutional investors own roughly 64% of the shares.

Two Harbors Investments (NYSE:TWO - Get Free Report)'s stock had its "neutral" rating reissued by investment analysts at Compass Point in a report issued on Friday,Benzinga reports.

A number of other equities research analysts also recently weighed in on the company. Maxim Group downgraded Two Harbors Investments from a "buy" rating to a "hold" rating in a research note on Thursday, December 18th. UBS Group downgraded Two Harbors Investments from a "buy" rating to a "neutral" rating and increased their price objective for the stock from $11.00 to $14.00 in a report on Friday, January 23rd. JPMorgan Chase & Co. decreased their target price on shares of Two Harbors Investments from $13.50 to $12.50 and set a "neutral" rating for the company in a research report on Wednesday, February 4th. Zacks Research downgraded shares of Two Harbors Investments from a "hold" rating to a "strong sell" rating in a report on Tuesday, January 27th. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Two Harbors Investments in a report on Monday, December 29th. Seven research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, Two Harbors Investments currently has a consensus rating of "Reduce" and an average price target of $12.88.

Two Harbors Investments Trading Down 2.1%

NYSE TWO traded down $0.24 on Friday, hitting $11.17. 5,589,933 shares of the company were exchanged, compared to its average volume of 3,812,434. The company has a debt-to-equity ratio of 1.09, a current ratio of 1.09 and a quick ratio of 1.09. Two Harbors Investments has a twelve month low of $8.78 and a twelve month high of $14.17. The firm has a market capitalization of $1.17 billion, a P/E ratio of -2.28 and a beta of 1.18. The company's 50 day moving average price is $11.17 and its 200-day moving average price is $10.53.

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

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. AQR Capital Management LLC acquired a new stake in shares of Two Harbors Investments in the first quarter valued at about $344,000. Millennium Management LLC grew its holdings 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 valued at $16,119,000 after buying an additional 115,698 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased 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 buying an additional 28,535 shares during the period. Intech Investment Management LLC lifted its holdings in shares of Two Harbors Investments by 54.4% during 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 buying an additional 32,361 shares during the last quarter. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS boosted its position in shares of Two Harbors Investments by 7.6% in the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 26,707 shares of the real estate investment trust's stock valued at $288,000 after acquiring an additional 1,896 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.

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