Two Harbors Investment (NYSE:TWO) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Saturday. The brokerage currently has a $18.00 price objective on the real estate investment trust’s stock. Zacks Investment Research‘s target price suggests a potential upside of 14.65% from the stock’s current price.
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. “
A number of other analysts have also commented on the company. B. Riley upgraded Two Harbors Investment from a “neutral” rating to a “buy” rating and cut their price target for the company from $20.00 to $16.50 in a report on Friday, November 10th. They noted that the move was a valuation call. Barclays boosted their price target on Two Harbors Investment from $10.00 to $17.00 and gave the company an “overweight” rating in a report on Thursday, November 9th. Maxim Group restated a “buy” rating and issued a $17.00 price target (down from $20.50) on shares of Two Harbors Investment in a report on Thursday, November 9th. Finally, ValuEngine lowered Two Harbors Investment from a “strong-buy” rating to a “buy” rating in a report on Thursday, November 9th. Two equities research analysts have rated the stock with a hold rating, six have given a buy rating and one has issued a strong buy rating to the stock. The stock currently has a consensus rating of “Buy” and a consensus price target of $17.93.
Two Harbors Investment (NYSE:TWO) last issued its quarterly earnings results on Tuesday, November 7th. The real estate investment trust reported $0.51 EPS for the quarter, beating analysts’ consensus estimates of $0.27 by $0.24. The company had revenue of $115.03 million for the quarter, compared to analyst estimates of $112.87 million. Two Harbors Investment had a return on equity of 10.27% and a net margin of 63.23%. The company’s quarterly revenue was up 6.0% compared to the same quarter last year. During the same period in the previous year, the company posted $0.24 earnings per share. sell-side analysts expect that Two Harbors Investment will post 2.08 earnings per share for the current year.
In related news, CEO Thomas Siering bought 3,500 shares of the stock in a transaction that occurred on Monday, November 13th. The shares were acquired at an average price of $15.30 per share, with a total value of $53,550.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Brian Taylor bought 9,500 shares of the stock in a transaction that occurred on Thursday, November 16th. The stock was bought at an average cost of $15.64 per share, for a total transaction of $148,580.00. The disclosure for this purchase can be found here. Over the last 90 days, insiders bought 18,000 shares of company stock worth $279,780. Corporate insiders own 1.16% of the company’s stock.
Several large investors have recently added to or reduced their stakes in TWO. Linscomb & Williams Inc. acquired a new stake in shares of Two Harbors Investment in the second quarter valued at about $100,000. Meeder Asset Management Inc. acquired a new stake in shares of Two Harbors Investment in the third quarter valued at about $101,000. Clinton Group Inc. acquired a new stake in shares of Two Harbors Investment in the second quarter valued at about $104,000. The Manufacturers Life Insurance Company increased its position in shares of Two Harbors Investment by 6.4% in the second quarter. The Manufacturers Life Insurance Company now owns 11,974 shares of the real estate investment trust’s stock valued at $119,000 after acquiring an additional 718 shares during the last quarter. Finally, C M Bidwell & Associates Ltd. acquired a new stake in shares of Two Harbors Investment in the second quarter valued at about $121,000.
Two Harbors Investment 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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