Two Harbors Investment (NYSE:TWO) Reaches New 52-Week Low Following Analyst Downgrade

Two Harbors Investment Corp. (NYSE:TWO)’s share price hit a new 52-week low during mid-day trading 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 traded. The stock had previously closed at $11.50.

A number of other analysts have also recently commented on the company. StockNews.com cut Two Harbors Investment from a “hold” rating to a “sell” rating in a research report on Tuesday, October 29th. Compass Point assumed coverage on Two Harbors Investment in a report on Thursday, October 3rd. They issued a “buy” rating and a $15.75 target price on the stock. 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 report on Thursday, October 17th. Janney Montgomery Scott started coverage on shares of Two Harbors Investment in a research report on Friday, August 16th. They set a “buy” rating and a $15.00 price objective on the stock. Finally, JPMorgan Chase & Co. decreased their target price on shares of Two Harbors Investment from $13.50 to $11.50 and set a “neutral” rating for the company in a report on Wednesday. One research analyst has rated the stock with a sell rating, four have given a hold rating and four have given a buy rating to the company. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $14.32.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Van ECK Associates Corp lifted its stake in shares of Two Harbors Investment by 48.2% in the 2nd 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 period. Price T Rowe Associates Inc. MD raised its position in Two Harbors Investment by 6.3% in the first quarter. Price T Rowe Associates Inc. MD now owns 89,702 shares of the real estate investment trust’s stock worth $1,188,000 after acquiring an additional 5,284 shares during the period. TrueMark Investments LLC bought a new position in Two Harbors Investment in the second quarter worth approximately $577,000. Mirae Asset Global Investments Co. Ltd. boosted its stake in shares of Two Harbors Investment by 155.4% during the 1st 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 acquiring an additional 801,837 shares during the last quarter. Finally, LifePro Asset Management grew its position in shares of Two Harbors Investment by 30.9% during the 3rd quarter. LifePro Asset Management now owns 201,792 shares of the real estate investment trust’s stock valued at $2,801,000 after acquiring an additional 47,689 shares during the period. 64.19% of the stock is owned by hedge funds and other institutional investors.

Two Harbors Investment Price Performance

The stock has a market capitalization of $1.18 billion, a PE ratio of -2.37 and a beta of 1.87. The company has a current ratio of 1.07, a quick ratio of 1.08 and a debt-to-equity ratio of 0.80. The firm has a 50 day moving average price of $13.34 and a 200 day moving average price of $13.18.

Two Harbors Investment (NYSE:TWO) last posted its quarterly earnings data on Monday, October 28th. The real estate investment trust reported $0.13 EPS for the quarter, missing the consensus estimate of $0.35 by ($0.22). Two Harbors Investment had a positive return on equity of 4.45% and a negative net margin of 87.84%. The company had revenue of $112.64 million during the quarter. During the same quarter in the prior year, the business earned ($0.01) earnings per share. Research analysts anticipate that Two Harbors Investment Corp. will post 0.7 earnings per share for the current year.

Two Harbors Investment Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, October 29th. Investors of record on Tuesday, October 1st were given a $0.45 dividend. The ex-dividend date was Tuesday, October 1st. This represents a $1.80 annualized dividend and a yield of 15.79%. Two Harbors Investment’s dividend payout ratio is currently -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.