Two Harbors Investment Corp. (NYSE:TWO) Receives Consensus Rating of “Moderate Buy” from Analysts
Shares of Two Harbors Investment Corp. (NYSE:TWO) have been assigned an average rating of “Moderate Buy” from the seven research firms that have been following the stock. Among these firms, three analysts have issued a hold recommendation while four have given it a buy recommendation. The average target price among analysts covering the stock over the last year is $15.04.
Recent research reports have focused on Two Harbors Investment, indicating a positive outlook. StockNews.com raised their rating on the shares from “sell” to “hold” in a note released on October 6th. Compass Point initiated coverage on October 3rd, providing a “buy” rating along with a target price of $15.75. Similarly, Janney Montgomery Scott began their coverage on August 16th, assigning a “buy” rating with a price objective of $15.00. On July 16th, JPMorgan Chase & Co. increased their target price from $12.50 to $13.00 while maintaining a “neutral” rating. JMP Securities reiterated a “market outperform” rating and set a target of $15.00 in a report on August 28th.
As of Tuesday, the stock opened at $12.84. Two Harbors Investment has recorded a one-year low of $9.83 and a high of $14.59. Financial metrics indicate a debt-to-equity ratio of 0.97, along with a quick ratio and current ratio of 1.08 each. The market capitalization stands at approximately $1.33 billion, with a PE ratio of 31.30 and a beta of 1.85. The company’s fifty-day moving average is $13.60, while its 200-day moving average is $13.16.
In its latest quarterly earnings data shared on July 30th, Two Harbors Investment reported earnings per share (EPS) of $0.17, exceeding the consensus estimate of $0.02 by $0.15. The firm achieved a return on equity of 3.64% and a net margin of 27.71%. Revenue for the quarter was $115.95 million, compared to a loss of $0.04 EPS during the same quarter last year. Current forecasts suggest that Two Harbors Investment could post an EPS of 0.46 for the year.
Recently, the company announced a quarterly dividend that is set for payment on October 29th. Investors on record as of October 1st will receive a dividend of $0.45 per share, translating to an annualized dividend of $1.80 and a dividend yield of 14.02%. The ex-dividend date was October 1st, and Two Harbors Investment’s payout ratio is standing at 439.02%.
In terms of institutional investment activity, several large investors have been active in buying and selling shares of Two Harbors Investment. For instance, Vanguard Group Inc. increased its stake by 10.7% during the first quarter, now owning approximately 11.7 million shares valued at around $155 million, following an acquisition of 1.1 million additional shares. Mirae Asset Global Investments Co. Ltd. raised their stake by an impressive 155.4% during the same quarter, owning 1.3 million shares valued at $18.5 million after purchasing an extra 801,837 shares.
Furthermore, Van ECK Associates Corp. boosted their position by 48.2%, owning 857,246 shares worth $11.3 million following an additional buy of 278,666 shares. Other institutional players include LifePro Asset Management, which made a new purchase worth $2.0 million, and SG Americas Securities LLC, which grew its stake by an astonishing 879.9%, now holding 129,227 shares valued at $1.7 million. Overall, institutional investors and hedge funds currently own around 64.19% of the company’s stock.
Two Harbors Investment Corp. is primarily engaged in investing in, financing, and managing mortgage servicing rights (MSRs), agency residential mortgage-backed securities (RMBS), and various financial assets through its subsidiary, RoundPoint. The firm targets a range of assets, including agency RMBS collateralized by fixed-rate mortgage loans, adjustable-rate loans, hybrid mortgage loans, and other financial or mortgage-related assets.
