Two Harbors Investments (NYSE:TWO) Given Neutral Rating at Compass Point

Compass Point reiterated their neutral rating on shares of Two Harbors Investments (NYSE:TWO) in a report issued on Friday morning,Benzinga reports.

Several other equities analysts have also recently issued reports on the company. Zacks Research cut Two Harbors Investments from a “hold” rating to a “strong sell” rating in a report on Tuesday, January 27th. UBS Group cut Two Harbors Investments from a “buy” rating to a “neutral” rating and raised their price target for the company from $11.00 to $14.00 in a research report on Friday, January 23rd. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Two Harbors Investments in a research note on Monday, December 29th. Maxim Group cut shares of Two Harbors Investments from a “buy” rating to a “hold” rating in a research note on Thursday, December 18th. Finally, JPMorgan Chase & Co. dropped their target price on shares of Two Harbors Investments from $13.50 to $12.50 and set a “neutral” rating for the company in a report on Wednesday, February 4th. Seven equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus price target of $12.88.

Two Harbors Investments Stock Down 1.7%

TWO stock opened at $11.21 on Friday. The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 1.09. The company’s 50-day moving average price is $11.12 and its 200 day moving average price is $10.53. Two Harbors Investments has a 52 week low of $8.78 and a 52 week high of $14.17. The company has a market cap of $1.18 billion, a P/E ratio of -2.29 and a beta of 1.18.

Two Harbors Investments (NYSE:TWO) last posted its quarterly earnings results on Monday, February 2nd. The real estate investment trust reported $0.26 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.30 by ($0.04). The company had revenue of $182.18 million for the quarter, compared to analyst estimates of ($15.44) million. Two Harbors Investments had a negative net margin of 109.90% and a positive return on equity of 12.00%. On average, research analysts expect that Two Harbors Investments will post 0.81 earnings per share for the current fiscal year.

Two Harbors Investments Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Thursday, April 2nd will be issued a $0.34 dividend. This represents a $1.36 dividend on an annualized basis and a dividend yield of 12.1%. The ex-dividend date of this dividend is Thursday, April 2nd. Two Harbors Investments’s payout ratio is -27.81%.

Institutional Trading of Two Harbors Investments

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Mowery & Schoenfeld Wealth Management LLC acquired a new position in Two Harbors Investments in the 3rd quarter valued at about $25,000. Quarry LP grew its holdings in shares of Two Harbors Investments by 695.6% during the third quarter. Quarry LP now owns 3,421 shares of the real estate investment trust’s stock worth $34,000 after buying an additional 2,991 shares in the last quarter. Smartleaf Asset Management LLC grew its holdings in shares of Two Harbors Investments by 34.5% during the fourth quarter. Smartleaf Asset Management LLC now owns 3,825 shares of the real estate investment trust’s stock worth $40,000 after buying an additional 981 shares in the last quarter. Advisory Services Network LLC acquired a new position in shares of Two Harbors Investments in the third quarter valued at approximately $42,000. Finally, CWM LLC lifted its stake in shares of Two Harbors Investments by 456.0% during the third quarter. CWM LLC now owns 5,465 shares of the real estate investment trust’s stock valued at $54,000 after buying an additional 4,482 shares during the period. Hedge funds and other institutional investors own 64.19% of the company’s stock.

Key Two Harbors Investments News

Here are the key news stories impacting Two Harbors Investments this week:

• Positive Sentiment: Definitive merger agreement — Two Harbors agreed to be acquired and taken private by CrossCountry (transaction provides a certain liquidity event for shareholders). TWO and CrossCountry Mortgage Announce Definitive Merger Agreement
• Neutral Sentiment: Compass Point reaffirmed a “neutral” rating on TWO — a steady analyst stance that neither upgrades the stock nor signals support for a higher deal premium. Compass Point Reaffirms Rating
• Neutral Sentiment: Market and analyst commentary highlights mixed mortgage-REIT fundamentals and valuation questions — useful context for whether the deal price is attractive versus expected future returns. Is TWO Price Reflecting Its Mixed Returns?
• Neutral Sentiment: Unusually high options activity and elevated share volume indicate speculative and event-driven trading around the deal — increases short-term volatility risk. Unusually High Options Trading
• Negative Sentiment: Deal price and prior competing bid dynamics — CrossCountry’s $10.80 per-share proposal is higher than a previous suitor’s offer but sits below recent intraday trades, prompting a pre-market selloff as shareholders mark down to the announced take-private price. Termination of Prior UWM Deal; CrossCountry $10.80 Offer
• Negative Sentiment: Market reaction: reports note the stock “tumbled” pre-market after the sellout price was disclosed — downside pressure reflects the discount to where some holders had been valuing TWO. Two Stock Tumbles Pre-Market

Two Harbors Investments Company Profile

Two Harbors Investments Corp. is a mortgage real estate investment trust (mREIT) that primarily invests in residential mortgage-backed securities (RMBS) issued or guaranteed by government-sponsored enterprises, as well as non-agency residential mortgage loans, mortgage servicing rights and credit risk transfer securities. The company seeks to generate attractive risk-adjusted returns for its shareholders by employing leverage to enhance net interest income derived from its portfolio of high-quality fixed-income assets.

Headquartered in Minneapolis, Minnesota, Two Harbors operates through a self-managed platform that combines portfolio management, risk-management and securitization expertise.