Zacks Investment Research cut shares of Two Harbors Investments Corp (NYSE:TWO) from a hold rating to a strong sell rating in a report released on Wednesday.

According to Zacks, “Two Harbors Investment Corp is a Real Estate Investment Trust that focuses on investing in, financing and managing residential mortgage-backed securities and mortgage loans. Its objective is to provide risk-adjusted returns to investors through dividends and capital appreciation. Two Harbors intends to acquire and manage a portfolio of mortgage-backed securities, focusing on security selection and the relative value of various sectors within the mortgage market. As an investment strategy, the company expects to deploy moderate borrowings through, with respect to Agency RMBS, short-term borrowings structured as repurchase agreements and, with respect to non-Agency RMBS and residential mortgage loans, private funding sources. It may also finance portions of its portfolio through non-recourse term borrowing facilities and equity financing under the Legacy Loan Program and Term Asset-Backed Securities Lending Facility (TALF), if such financing becomes available. “

Several other research firms have also recently weighed in on TWO. BidaskClub raised Two Harbors Investments Corp from a buy rating to a strong-buy rating in a research report on Friday, August 4th. Credit Suisse Group started coverage on Two Harbors Investments Corp in a research report on Wednesday, July 5th. They set an outperform rating and a $10.50 price objective for the company. Finally, Maxim Group reissued a buy rating and set a $10.25 price objective on shares of Two Harbors Investments Corp in a research report on Tuesday, August 8th. One equities research analyst has rated the stock with a sell rating, two have given a hold rating, three have issued a buy rating and one has issued a strong buy rating to the company. The stock currently has an average rating of Buy and a consensus price target of $9.95.

Shares of Two Harbors Investments Corp (TWO) opened at 10.12 on Wednesday. Two Harbors Investments Corp has a 52 week low of $8.20 and a 52 week high of $10.54. The firm’s 50-day moving average price is $10.11 and its 200-day moving average price is $9.99. The firm has a market cap of $3.53 billion, a price-to-earnings ratio of 6.60 and a beta of 0.58. Two Harbors Investments Corp’s stock is set to reverse split on the morning of Thursday, November 2nd. The 1-2 reverse split was announced on Thursday, September 14th. The number of shares owned by shareholders will be adjusted after the closing bell on Wednesday, November 1st.

Two Harbors Investments Corp (NYSE:TWO) last posted its quarterly earnings data on Monday, August 7th. The real estate investment trust reported $0.28 earnings per share for the quarter, topping the consensus estimate of $0.26 by $0.02. Two Harbors Investments Corp had a return on equity of 10.26% and a net margin of 72.15%. The business had revenue of $117.79 million during the quarter, compared to analysts’ expectations of $123.04 million. During the same quarter in the previous year, the firm earned $0.22 EPS. The firm’s revenue was up 16.8% compared to the same quarter last year. Equities research analysts expect that Two Harbors Investments Corp will post $1.07 EPS for the current fiscal year.

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The company also recently declared a quarterly dividend, which will be paid on Friday, October 27th. Shareholders of record on Friday, September 29th will be issued a $0.26 dividend. The ex-dividend date of this dividend is Thursday, September 28th. This represents a $1.04 annualized dividend and a yield of 10.28%. Two Harbors Investments Corp’s dividend payout ratio (DPR) is 72.73%.

In other news, Director Brian Taylor purchased 32,000 shares of the business’s stock in a transaction on Tuesday, August 15th. The stock was purchased at an average price of $10.06 per share, with a total value of $321,920.00. Following the acquisition, the director now directly owns 51,865 shares in the company, valued at approximately $521,761.90. The purchase was disclosed in a document filed with the SEC, which is accessible through this link. Also, major shareholder Two Harbors Investment Corp. purchased 3,472 shares of the business’s stock in a transaction on Friday, October 13th. The stock was purchased at an average cost of $18.96 per share, with a total value of $65,829.12. The disclosure for this purchase can be found here. In the last ninety days, insiders acquired 147,018 shares of company stock valued at $2,459,893. Insiders own 1.16% of the company’s stock.

A number of institutional investors have recently bought and sold shares of the business. Koch Industries Inc. raised its holdings in Two Harbors Investments Corp by 412.6% in the 2nd quarter. Koch Industries Inc. now owns 156,623 shares of the real estate investment trust’s stock valued at $142,000 after acquiring an additional 126,067 shares in the last quarter. 1st Global Advisors Inc. acquired a new position in Two Harbors Investments Corp in the 2nd quarter valued at approximately $395,000. Piedmont Investment Advisors LLC acquired a new position in Two Harbors Investments Corp in the 2nd quarter valued at approximately $1,703,000. Sterling Capital Management LLC raised its holdings in Two Harbors Investments Corp by 9.2% in the 2nd quarter. Sterling Capital Management LLC now owns 93,234 shares of the real estate investment trust’s stock valued at $924,000 after acquiring an additional 7,864 shares in the last quarter. Finally, Linscomb & Williams Inc. acquired a new position in Two Harbors Investments Corp in the 2nd quarter valued at approximately $100,000. 70.21% of the stock is owned by hedge funds and other institutional investors.

Two Harbors Investments Corp Company Profile

Two Harbors Investment Corp. is a real estate investment trust. The Company is focused on investing in, financing and managing residential mortgage-backed securities (RMBS), mortgage servicing rights (MSR), commercial real estate and other financial assets (collectively known as target assets). Its investment objective is to provide attractive risk-adjusted total return to its stockholders over the long-term, primarily through dividends and secondarily through capital appreciation.

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