Two Harbors Investment (NYSE:TWO) Announces Quarterly Earnings Results, Misses Expectations By $0.07 EPS

Two Harbors Investment (NYSE:TWO) posted its earnings results on Wednesday. The real estate investment trust reported $0.20 earnings per share for the quarter, missing analysts’ consensus estimates of $0.27 by ($0.07), Zacks reports. Two Harbors Investment had a return on equity of 6.44% and a net margin of 66.24%.

Two Harbors Investment Stock Performance

NYSE TWO traded up $0.21 on Friday, hitting $12.77. 363,118 shares of the company’s stock traded hands, compared to its average volume of 1,353,033. The firm’s 50-day moving average price is $11.76 and its two-hundred day moving average price is $12.67. The firm has a market capitalization of $1.32 billion, a PE ratio of 6.05 and a beta of 1.83. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.80. Two Harbors Investment has a 1-year low of $10.84 and a 1-year high of $14.27.

Two Harbors Investment Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, January 29th. Investors of record on Friday, January 3rd were paid a $0.45 dividend. The ex-dividend date of this dividend was Friday, January 3rd. This represents a $1.80 dividend on an annualized basis and a yield of 14.10%. Two Harbors Investment’s dividend payout ratio (DPR) is 85.31%.

Insider Buying and Selling at Two Harbors Investment

In other news, insider Rebecca B. Sandberg sold 5,025 shares of the stock in a transaction dated Wednesday, January 8th. The shares were sold at an average price of $11.21, for a total transaction of $56,330.25. Following the sale, the insider now owns 156,163 shares of the company’s stock, valued at approximately $1,750,587.23. This represents a 3.12 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CIO Nicholas Letica sold 5,737 shares of Two Harbors Investment stock in a transaction on Tuesday, January 14th. The stock was sold at an average price of $11.28, for a total transaction of $64,713.36. Following the sale, the executive now owns 168,935 shares in the company, valued at $1,905,586.80. This represents a 3.28 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 29,754 shares of company stock valued at $333,307. 0.61% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on TWO. Royal Bank of Canada cut their price target on shares of Two Harbors Investment from $14.00 to $12.00 and set a “sector perform” rating on the stock in a report on Friday, November 1st. StockNews.com raised Two Harbors Investment to a “sell” rating in a research note on Tuesday. JPMorgan Chase & Co. lowered their target price on shares of Two Harbors Investment from $11.50 to $11.00 and set a “neutral” rating on the stock in a report on Tuesday, January 21st. JMP Securities restated a “market outperform” rating and set a $14.00 price target on shares of Two Harbors Investment in a report on Thursday, January 23rd. Finally, Compass Point decreased their price objective on shares of Two Harbors Investment from $15.75 to $14.75 and set a “buy” rating for the company in a report on Monday, November 25th. One analyst has rated the stock with a sell rating, three have issued a hold rating and four have given a buy rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $13.54.

Two Harbors Investment 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.