Two Harbors Investment (NYSE:TWO) Hits New 1-Year Low on Analyst Downgrade

Two Harbors Investment Corp. (NYSE:TWO) hit a new 52-week low on Friday after Royal Bank of Canada lowered their price target on the stock from $14.00 to $12.00. Royal Bank of Canada currently has a sector perform rating on the stock. Two Harbors Investment traded as low as $11.47 and last traded at $11.48, with a volume of 328071 shares trading hands. The stock had previously closed at $11.50.

Several other equities analysts have also recently weighed in on TWO. Compass Point started coverage on Two Harbors Investment in a research report on Thursday, October 3rd. They issued a “buy” rating and a $15.75 price target for the company. JMP Securities reduced their price target on Two Harbors Investment from $15.00 to $14.50 and set a “market outperform” rating for the company in a research report on Thursday, October 17th. Janney Montgomery Scott started coverage on Two Harbors Investment in a research report on Friday, August 16th. They issued a “buy” rating and a $15.00 price target for the company. JPMorgan Chase & Co. reduced their price target on Two Harbors Investment from $13.50 to $11.50 and set a “neutral” rating for the company in a research report on Wednesday. Finally, StockNews.com cut Two Harbors Investment from a “hold” rating to a “sell” rating in a research report on Tuesday, October 29th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat, Two Harbors Investment has an average rating of “Hold” and an average price target of $14.32.

Hedge Funds Weigh In On Two Harbors Investment

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its position in Two Harbors Investment by 10.7% during the first quarter. Vanguard Group Inc. now owns 11,706,755 shares of the real estate investment trust’s stock worth $154,997,000 after buying an additional 1,135,012 shares in the last quarter. Allspring Global Investments Holdings LLC lifted its stake in Two Harbors Investment by 1.6% during the third quarter. Allspring Global Investments Holdings LLC now owns 5,281,220 shares of the real estate investment trust’s stock worth $73,303,000 after purchasing an additional 84,038 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. lifted its stake in Two Harbors Investment by 155.4% during the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 1,317,877 shares of the real estate investment trust’s stock worth $18,516,000 after purchasing an additional 801,837 shares during the last quarter. Van ECK Associates Corp lifted its stake in Two Harbors Investment by 48.2% during the second quarter. Van ECK Associates Corp now owns 857,246 shares of the real estate investment trust’s stock worth $11,324,000 after purchasing an additional 278,666 shares during the last quarter. Finally, Rhumbline Advisers lifted its stake in Two Harbors Investment by 1.1% during the second quarter. Rhumbline Advisers now owns 310,806 shares of the real estate investment trust’s stock worth $4,106,000 after purchasing an additional 3,408 shares during the last quarter. 64.19% of the stock is currently owned by hedge funds and other institutional investors.

Two Harbors Investment Stock Performance

The company has a debt-to-equity ratio of 0.80, a current ratio of 1.07 and a quick ratio of 1.08. The company has a 50 day simple moving average of $13.34 and a 200-day simple moving average of $13.18. The stock has a market cap of $1.18 billion, a P/E ratio of -2.37 and a beta of 1.87.

Two Harbors Investment (NYSE:TWO) last released its earnings results on Monday, October 28th. The real estate investment trust reported $0.13 earnings per share for the quarter, missing analysts’ consensus estimates of $0.35 by ($0.22). Two Harbors Investment had a negative net margin of 87.84% and a positive return on equity of 4.45%. The company had revenue of $112.64 million during the quarter. During the same period in the previous year, the business posted ($0.01) earnings per share. On average, equities analysts expect that Two Harbors Investment Corp. will post 0.7 earnings per share for the current fiscal year.

Two Harbors Investment Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, October 29th. Stockholders of record on Tuesday, October 1st were paid a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a dividend yield of 15.79%. The ex-dividend date was Tuesday, October 1st. Two Harbors Investment’s dividend payout ratio (DPR) is presently -37.34%.

About Two Harbors Investment

Two Harbors Investment Corp. invests in, finances, and manages mortgage servicing rights (MSRs), agency residential mortgage-backed securities (RMBS), and other financial assets through RoundPoint in the United States. The company target assets include agency RMBS collateralized by fixed rate mortgage loans, adjustable rate mortgage loans, hybrid mortgage loans, or derivatives; and other assets, such as financial and mortgage-related assets, including non-agency securities and non-hedging transactions.