Two Harbors Investment (NYSE:TWO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Tuesday.
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 equities analysts have also commented on the stock. Barclays raised their price target on shares of Two Harbors Investment from $10.00 to $17.00 and gave the stock an “overweight” rating in a research report on Thursday, November 9th. Maxim Group reaffirmed a “buy” rating and set a $17.00 price target (down from $20.50) on shares of Two Harbors Investment in a research report on Thursday, November 9th. B. Riley raised shares of Two Harbors Investment from a “neutral” rating to a “buy” rating and lowered their price target for the stock from $20.00 to $16.50 in a research report on Friday, November 10th. They noted that the move was a valuation call. Finally, ValuEngine lowered shares of Two Harbors Investment from a “strong-buy” rating to a “buy” rating in a research report on Thursday, November 9th. Three equities research analysts have rated the stock with a hold rating, five have given a buy rating and one has given a strong buy rating to the company. Two Harbors Investment has a consensus rating of “Buy” and a consensus target price of $17.93.
Two Harbors Investment (NYSE:TWO) last issued its quarterly earnings data on Tuesday, November 7th. The real estate investment trust reported $0.51 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate 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 net margin of 63.23% and a return on equity of 10.27%. The company’s revenue was up 6.0% on a year-over-year basis. During the same period in the prior year, the firm earned $0.24 earnings per share. sell-side analysts expect that Two Harbors Investment will post 2.08 EPS for the current year.
In other news, Director William Reid Sanders bought 5,000 shares of the firm’s stock in a transaction on Tuesday, November 14th. The shares were purchased at an average cost of $15.53 per share, with a total value of $77,650.00. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Brian Taylor bought 9,500 shares of the firm’s stock in a transaction on Thursday, November 16th. The stock was purchased 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 ninety days, insiders have purchased 18,000 shares of company stock worth $279,780. 1.16% of the stock is owned by insiders.
Hedge funds have recently added to or reduced their stakes in the business. Meeder Asset Management Inc. bought a new position in Two Harbors Investment in the 3rd quarter valued at about $101,000. Linscomb & Williams Inc. bought a new position in Two Harbors Investment in the 2nd quarter valued at about $100,000. State of Alaska Department of Revenue bought a new position in Two Harbors Investment in the 4th quarter valued at about $165,000. Clinton Group Inc. bought a new position in Two Harbors Investment in the 2nd quarter valued at about $104,000. Finally, The Manufacturers Life Insurance Company increased its holdings in Two Harbors Investment by 6.4% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 11,974 shares of the real estate investment trust’s stock valued at $119,000 after buying an additional 718 shares during the period.
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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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