Two Harbors Investments (NYSE:TWO) Issues Quarterly Earnings Results, Misses Expectations By $0.04 EPS

Two Harbors Investments (NYSE:TWO) posted its earnings results on Monday. The real estate investment trust reported $0.26 EPS for the quarter, missing analysts’ consensus estimates of $0.30 by ($0.04), FiscalAI reports. The company had revenue of $182.18 million during the quarter, compared to the consensus estimate of ($15.44) million. Two Harbors Investments had a positive return on equity of 11.92% and a negative net margin of 44.10%.

Two Harbors Investments Price Performance

TWO stock traded up $0.36 during midday trading on Monday, hitting $11.83. The company’s stock had a trading volume of 3,996,756 shares, compared to its average volume of 3,662,580. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 1.13. Two Harbors Investments has a 12 month low of $9.30 and a 12 month high of $14.28. The company has a 50 day moving average of $11.31 and a two-hundred day moving average of $10.39. The firm has a market capitalization of $1.23 billion, a price-to-earnings ratio of -4.73 and a beta of 1.19.

Two Harbors Investments Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, January 29th. Shareholders of record on Monday, January 5th were paid a $0.34 dividend. This represents a $1.36 annualized dividend and a yield of 11.5%. The ex-dividend date was Monday, January 5th. Two Harbors Investments’s dividend payout ratio is presently -54.40%.

Insider Transactions at Two Harbors Investments

In related news, CIO Nicholas Letica sold 55,488 shares of the company’s stock in a transaction on Friday, December 19th. The shares were sold at an average price of $11.42, for a total transaction of $633,672.96. Following the completion of the transaction, the executive owned 166,507 shares in the company, valued at approximately $1,901,509.94. This represents a 25.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Robert Rush sold 23,594 shares of the company’s stock in a transaction that occurred on Friday, December 19th. The stock was sold at an average price of $11.43, for a total value of $269,679.42. Following the sale, the insider directly owned 98,207 shares in the company, valued at $1,122,506.01. This trade represents a 19.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 129,389 shares of company stock valued at $1,483,046. 0.61% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Two Harbors Investments

Several institutional investors have recently bought and sold shares of the business. Quarry LP increased its holdings in shares of Two Harbors Investments by 695.6% in the 3rd quarter. Quarry LP now owns 3,421 shares of the real estate investment trust’s stock worth $34,000 after buying an additional 2,991 shares during the last quarter. Advisory Services Network LLC purchased a new position in Two Harbors Investments in the third quarter worth about $42,000. CIBC Bancorp USA Inc. purchased a new position in Two Harbors Investments in the third quarter worth about $110,000. Tower Research Capital LLC TRC increased its stake in Two Harbors Investments by 88.2% during the second quarter. Tower Research Capital LLC TRC now owns 12,208 shares of the real estate investment trust’s stock worth $131,000 after acquiring an additional 5,720 shares during the last quarter. Finally, Osaic Holdings Inc. raised its position in Two Harbors Investments by 11.1% during the second quarter. Osaic Holdings Inc. now owns 13,130 shares of the real estate investment trust’s stock valued at $142,000 after purchasing an additional 1,309 shares during the period. Institutional investors own 64.19% of the company’s stock.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. Zacks Research downgraded Two Harbors Investments from a “hold” rating to a “strong sell” rating in a research note on Tuesday, January 27th. Wall Street Zen raised Two Harbors Investments from a “sell” rating to a “hold” rating in a research report on Saturday, November 1st. Maxim Group downgraded Two Harbors Investments from a “buy” rating to a “hold” rating in a research note on Thursday, December 18th. UBS Group lowered shares of Two Harbors Investments from a “buy” rating to a “neutral” rating and upped their price target for the company from $11.00 to $14.00 in a research report on Friday, January 23rd. Finally, JPMorgan Chase & Co. raised their price objective on shares of Two Harbors Investments from $9.50 to $10.00 and gave the stock a “neutral” rating in a report on Monday, October 20th. Seven analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Reduce” and an average target price of $12.46.

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.