Two Harbors Investments Corp (TWO) Downgraded by Zacks Investment Research to Strong Sell
Two Harbors Investments Corp (NYSE:TWO) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research report issued 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 analysts have also commented on TWO. Credit Suisse Group initiated coverage on shares of Two Harbors Investments Corp in a research report on Wednesday, July 5th. They set an “outperform” rating and a $10.50 price target on the stock. BidaskClub lowered shares of Two Harbors Investments Corp from a “strong-buy” rating to a “buy” rating in a research report on Friday, July 28th. Finally, Maxim Group reaffirmed a “buy” rating and set a $10.25 price target 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 issued a hold rating, three have given a buy rating and one has given a strong buy rating to the company’s stock. The company has a consensus rating of “Buy” and a consensus price target of $9.95.
Two Harbors Investments Corp (NYSE:TWO) last released its quarterly earnings results on Monday, August 7th. The real estate investment trust reported $0.28 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.26 by $0.02. The firm had revenue of $117.79 million for the quarter, compared to analyst estimates of $123.04 million. Two Harbors Investments Corp had a net margin of 72.15% and a return on equity of 10.26%. The business’s revenue for the quarter was up 16.8% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.22 EPS. Equities research analysts forecast that Two Harbors Investments Corp will post $1.07 earnings per share for the current fiscal year.
In other news, major shareholder Two Harbors Investment Corp. bought 25,000 shares of the business’s stock in a transaction on Wednesday, August 9th. The shares were bought at an average price of $19.07 per share, with a total value of $476,750.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Brian Taylor bought 32,000 shares of the business’s stock in a transaction on Tuesday, August 15th. The stock was purchased at an average cost of $10.06 per share, for a total transaction of $321,920.00. Following the transaction, the director now owns 51,865 shares of the company’s stock, valued at $521,761.90. The disclosure for this purchase can be found here. In the last three months, insiders acquired 118,829 shares of company stock worth $1,925,821. 1.16% of the stock is owned by corporate insiders.
Hedge funds and other institutional investors have recently made changes to their positions in the business. FJ Capital Management LLC purchased a new stake in Two Harbors Investments Corp in the fourth quarter valued at approximately $100,000. Linscomb & Williams Inc. purchased a new stake in Two Harbors Investments Corp in the second quarter valued at approximately $100,000. Clinton Group Inc. purchased a new stake in Two Harbors Investments Corp in the second quarter valued at approximately $104,000. HighTower Advisors LLC purchased a new stake in Two Harbors Investments Corp in the first quarter valued at approximately $106,000. Finally, Greenleaf Trust purchased a new stake in Two Harbors Investments Corp in the third quarter valued at approximately $107,000. 70.21% of the stock is currently owned by institutional investors.
About Two Harbors Investments Corp
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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