Two Harbors Investments Sees Unusually High Options Volume (NYSE:TWO)

Two Harbors Investments Corp (NYSE:TWO) saw some unusual options trading activity on Wednesday. Stock investors bought 4,294 call options on the stock. This represents an increase of 731% compared to the typical daily volume of 517 call options.

Two Harbors Investments Stock Up 11.8%

Shares of TWO traded up $1.17 during midday trading on Wednesday, reaching $11.08. 9,510,961 shares of the stock were exchanged, compared to its average volume of 1,699,007. The company has a market capitalization of $1.15 billion, a P/E ratio of -4.44 and a beta of 1.20. The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 1.13. Two Harbors Investments has a 52 week low of $9.30 and a 52 week high of $14.28. The company’s 50 day moving average is $9.82 and its two-hundred day moving average is $10.07.

Two Harbors Investments (NYSE:TWO) last posted its earnings results on Monday, March 7th. The real estate investment trust reported $0.24 EPS for the quarter. Two Harbors Investments had a negative net margin of 44.10% and a positive return on equity of 11.92%. The business had revenue of ($18.67) million for the quarter. On average, sell-side analysts anticipate that Two Harbors Investments will post 0.81 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Mowery & Schoenfeld Wealth Management LLC bought a new position in shares of Two Harbors Investments in the 3rd quarter worth $25,000. Quarry LP raised its holdings in Two Harbors Investments by 695.6% in the third quarter. Quarry LP now owns 3,421 shares of the real estate investment trust’s stock worth $34,000 after purchasing an additional 2,991 shares in the last quarter. AlphaQuest LLC lifted its position in shares of Two Harbors Investments by 240.4% during the second quarter. AlphaQuest LLC now owns 3,370 shares of the real estate investment trust’s stock valued at $36,000 after buying an additional 2,380 shares during the last quarter. Advisory Services Network LLC bought a new stake in shares of Two Harbors Investments in the 3rd quarter valued at about $42,000. Finally, CWM LLC grew its position in shares of Two Harbors Investments by 456.0% in the 3rd quarter. CWM LLC now owns 5,465 shares of the real estate investment trust’s stock worth $54,000 after buying an additional 4,482 shares during the last quarter. 64.19% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several brokerages have issued reports on TWO. UBS Group dropped their target price on Two Harbors Investments from $12.00 to $11.00 and set a “buy” rating for the company in a research report on Wednesday, September 3rd. Weiss Ratings restated a “sell (d+)” rating on shares of Two Harbors Investments in a report on Monday. Zacks Research upgraded Two Harbors Investments from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, November 5th. Wall Street Zen upgraded Two Harbors Investments from a “sell” rating to a “hold” rating in a research report on Saturday, November 1st. Finally, JPMorgan Chase & Co. upped their price target on shares of Two Harbors Investments from $9.50 to $10.00 and gave the stock a “neutral” rating in a report on Monday, October 20th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $11.96.

Two Harbors Investments Company Profile

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.