Two Harbors Investment (NYSE:TWO) Sets New 52-Week Low – What’s Next?

Two Harbors Investment Corp. (NYSE:TWO)’s stock price hit a new 52-week low on Tuesday . The company traded as low as $10.84 and last traded at $11.12, with a volume of 1107174 shares changing hands. The stock had previously closed at $11.10.

Analysts Set New Price Targets

Several brokerages recently issued reports on TWO. StockNews.com upgraded shares of Two Harbors Investment to a “sell” rating in a research report on Thursday, December 12th. Royal Bank of Canada reduced their target price on shares of Two Harbors Investment from $14.00 to $12.00 and set a “sector perform” rating on the stock in a research report on Friday, November 1st. JMP Securities lowered their price target on shares of Two Harbors Investment from $15.00 to $14.50 and set a “market outperform” rating for the company in a report on Thursday, October 17th. Compass Point reduced their price objective on Two Harbors Investment from $15.75 to $14.75 and set a “buy” rating on the stock in a report on Monday, November 25th. Finally, JPMorgan Chase & Co. lowered their target price on Two Harbors Investment from $13.50 to $11.50 and set a “neutral” rating for the company in a research note on Wednesday, October 30th. One investment analyst has rated the stock with a sell rating, three have given a hold rating and four have given a buy rating to the company’s stock. Based on data from MarketBeat.com, Two Harbors Investment presently has an average rating of “Hold” and a consensus price target of $13.71.

Two Harbors Investment Trading Up 2.6 %

The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.80. The company’s fifty day simple moving average is $11.69 and its two-hundred day simple moving average is $12.76.

Two Harbors Investment (NYSE:TWO) last posted its earnings results on Monday, October 28th. The real estate investment trust reported $0.13 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.35 by ($0.22). Two Harbors Investment had a positive return on equity of 4.45% and a negative net margin of 87.84%. The business had revenue of $112.64 million for the quarter. During the same period last year, the firm posted ($0.01) earnings per share. Research analysts predict that Two Harbors Investment Corp. will post 0.47 earnings per share for the current year.

Two Harbors Investment Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 29th. Stockholders of record on Friday, January 3rd will be issued a $0.45 dividend. The ex-dividend date of this dividend is Friday, January 3rd. This represents a $1.80 dividend on an annualized basis and a dividend yield of 15.48%. Two Harbors Investment’s dividend payout ratio (DPR) is presently -37.34%.

Insiders Place Their Bets

In other news, CIO Nicholas Letica sold 3,956 shares of the company’s stock in a transaction that occurred on Wednesday, January 8th. The stock was sold at an average price of $11.21, for a total transaction of $44,346.76. Following the sale, the executive now owns 180,712 shares in the company, valued at $2,025,781.52. This represents a 2.14 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, insider Rebecca B. Sandberg sold 3,785 shares of the stock in a transaction on Friday, January 10th. The shares were sold at an average price of $11.14, for a total transaction of $42,164.90. Following the completion of the sale, the insider now owns 152,378 shares of the company’s stock, valued at approximately $1,697,490.92. This represents a 2.42 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 29,754 shares of company stock valued at $333,307 in the last three months. 0.61% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Two Harbors Investment

Institutional investors have recently bought and sold shares of the business. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Two Harbors Investment by 1,680.0% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,225 shares of the real estate investment trust’s stock worth $29,000 after acquiring an additional 2,100 shares during the period. McIlrath & Eck LLC bought a new position in Two Harbors Investment during the third quarter worth $64,000. Simplify Asset Management Inc. bought a new position in Two Harbors Investment during the third quarter worth $134,000. AQR Capital Management LLC acquired a new position in shares of Two Harbors Investment in the second quarter valued at $147,000. Finally, QRG Capital Management Inc. raised its position in shares of Two Harbors Investment by 11.3% in the third quarter. QRG Capital Management Inc. now owns 12,100 shares of the real estate investment trust’s stock valued at $168,000 after purchasing an additional 1,230 shares during the period. Institutional investors and hedge funds own 64.19% of the company’s stock.

About Two Harbors Investment

Two Harbors Investment Corp. invests in, finances, and manages mortgage servicing rights (MSRs), agency residential mortgage-backed securities (RMBS), and other financial assets through RoundPoint in the United States. The company target assets include agency RMBS collateralized by fixed rate mortgage loans, adjustable rate mortgage loans, hybrid mortgage loans, or derivatives; and other assets, such as financial and mortgage-related assets, including non-agency securities and non-hedging transactions.