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 to clients and investors 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 research firms have also commented on TWO. BidaskClub upgraded Two Harbors Investments Corp from a “buy” rating to a “strong-buy” rating in a report on Friday, August 4th. Credit Suisse Group started coverage on Two Harbors Investments Corp in a report on Wednesday, July 5th. They set an “outperform” rating and a $10.50 price target on the stock. Finally, Maxim Group reiterated a “buy” rating and set a $10.25 price target on shares of Two Harbors Investments Corp in a report on Tuesday, August 8th. One analyst has rated the stock with a sell rating, two have assigned a hold rating, three have issued a buy rating and one has given a strong buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and an average target price of $9.95.
Two Harbors Investments Corp (NYSE:TWO) last posted its quarterly earnings results on Monday, August 7th. The real estate investment trust reported $0.28 EPS for the quarter, topping the consensus estimate of $0.26 by $0.02. Two Harbors Investments Corp had a return on equity of 10.26% and a net margin of 72.15%. The business had revenue of $117.79 million for the quarter, compared to analyst estimates of $123.04 million. During the same quarter in the previous year, the firm earned $0.22 EPS. The company’s quarterly revenue was up 16.8% compared to the same quarter last year.
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In related news, CEO Thomas Siering acquired 5,000 shares of Two Harbors Investments Corp stock in a transaction that occurred on Monday, August 14th. The shares were purchased at an average cost of $10.14 per share, for a total transaction of $50,700.00. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, major shareholder Two Harbors Investment Corp. acquired 2,395 shares of Two Harbors Investments Corp stock in a transaction that occurred on Tuesday, September 26th. The stock was bought at an average price of $18.95 per share, for a total transaction of $45,385.25. The disclosure for this purchase can be found here. Over the last 90 days, insiders purchased 118,829 shares of company stock worth $1,925,821. 1.16% of the stock is owned by insiders.
Institutional investors and hedge funds have recently modified their holdings of the stock. Linscomb & Williams Inc. purchased a new stake in Two Harbors Investments Corp in the 2nd quarter valued at about $100,000. Clinton Group Inc. purchased a new stake in Two Harbors Investments Corp in the 2nd quarter valued at about $104,000. HighTower Advisors LLC purchased a new stake in Two Harbors Investments Corp in the 1st quarter valued at about $106,000. Synovus Financial Corp purchased a new stake in Two Harbors Investments Corp in the 2nd quarter valued at about $113,000. Finally, The Manufacturers Life Insurance Company raised its holdings in Two Harbors Investments Corp 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. Hedge funds and other institutional investors own 70.21% of the company’s stock.
Two Harbors Investments Corp 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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