Two Harbors Investments Corp (NYSE:TWO) Given Consensus Recommendation of “Reduce” by Analysts

Two Harbors Investments Corp (NYSE:TWO) has been assigned an average rating of “Reduce” from the seven brokerages that are covering the firm, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell recommendation and five have assigned a hold recommendation to the company. The average 12-month price objective among brokerages that have covered the stock in the last year is $12.3333.

TWO has been the topic of a number of recent analyst reports. JPMorgan Chase & Co. downgraded shares of Two Harbors Investments from a “neutral” rating to an “underweight” rating and lowered their target price for the company from $12.50 to $11.00 in a research note on Thursday, April 16th. Zacks Research raised shares of Two Harbors Investments from a “strong sell” rating to a “hold” rating in a research note on Monday, April 6th. Weiss Ratings raised shares of Two Harbors Investments from a “sell (d)” rating to a “sell (d+)” rating in a research note on Wednesday, April 29th. Finally, Compass Point downgraded shares of Two Harbors Investments from a “buy” rating to a “neutral” rating in a research note on Friday, March 27th.

Two Harbors Investments Trading Down 0.1%

Shares of TWO opened at $12.35 on Friday. The firm’s 50 day simple moving average is $11.77 and its 200 day simple moving average is $11.20. The company has a market capitalization of $1.30 billion, a P/E ratio of -3.23 and a beta of 1.04. The company has a debt-to-equity ratio of 0.91, a current ratio of 1.06 and a quick ratio of 1.06. Two Harbors Investments has a 1-year low of $8.78 and a 1-year high of $14.17.

Two Harbors Investments (NYSE:TWO) last announced its earnings results on Tuesday, April 28th. The real estate investment trust reported $0.34 earnings per share for the quarter, beating analysts’ consensus estimates of $0.21 by $0.13. The business had revenue of $225.08 million for the quarter, compared to the consensus estimate of $2.33 million. Two Harbors Investments had a negative net margin of 87.72% and a positive return on equity of 13.62%. Sell-side analysts forecast that Two Harbors Investments will post 0.8 earnings per share for the current fiscal year.

Two Harbors Investments Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Thursday, April 2nd were paid a dividend of $0.34 per share. The ex-dividend date of this dividend was Thursday, April 2nd. This represents a $1.36 annualized dividend and a dividend yield of 11.0%. Two Harbors Investments’s dividend payout ratio (DPR) is -35.60%.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Quarry LP raised its stake in shares of Two Harbors Investments by 695.6% during the third quarter. Quarry LP now owns 3,421 shares of the real estate investment trust’s stock worth $34,000 after acquiring an additional 2,991 shares in the last quarter. Smartleaf Asset Management LLC raised its stake in shares of Two Harbors Investments by 34.5% during the fourth quarter. Smartleaf Asset Management LLC now owns 3,825 shares of the real estate investment trust’s stock worth $40,000 after acquiring an additional 981 shares in the last quarter. Advisory Services Network LLC purchased a new position in shares of Two Harbors Investments during the third quarter worth approximately $42,000. Kemnay Advisory Services Inc. purchased a new position in shares of Two Harbors Investments during the fourth quarter worth approximately $68,000. Finally, Los Angeles Capital Management LLC purchased a new position in shares of Two Harbors Investments during the fourth quarter worth approximately $75,000. 64.19% of the stock is owned by hedge funds and other institutional investors.

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.