Two Harbors Investment (TWO) Downgraded by Zacks Investment Research

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Two Harbors Investment (NYSE:TWO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Thursday.

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 analysts also recently commented on TWO. ValuEngine downgraded shares of Two Harbors Investment from a “sell” rating to a “strong sell” rating in a report on Friday, September 21st. Raymond James assumed coverage on shares of Two Harbors Investment in a report on Thursday, October 11th. They set an “outperform” rating and a $16.50 price target on the stock. Barclays set a $16.00 price target on shares of Two Harbors Investment and gave the stock a “buy” rating in a report on Thursday, November 8th. Finally, JMP Securities lowered their price target on shares of Two Harbors Investment from $17.00 to $16.00 and set a “market outperform” rating on the stock in a report on Thursday, November 15th. Two analysts have rated the stock with a sell rating, one has assigned a hold rating and six have assigned a buy rating to the stock. The stock presently has an average rating of “Hold” and a consensus target price of $16.25.

Shares of TWO stock traded up $0.05 during trading hours on Thursday, hitting $13.78. The company’s stock had a trading volume of 55,080 shares, compared to its average volume of 1,955,233. The company has a market capitalization of $3.33 billion, a P/E ratio of 6.62 and a beta of 0.40. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.19 and a quick ratio of 1.19. Two Harbors Investment has a 12-month low of $12.63 and a 12-month high of $16.27.

Two Harbors Investment (NYSE:TWO) last released its quarterly earnings data on Tuesday, November 6th. The real estate investment trust reported $0.48 EPS for the quarter, meeting the consensus estimate of $0.48. The business had revenue of $84.30 million for the quarter, compared to the consensus estimate of $82.10 million. Two Harbors Investment had a net margin of 66.36% and a return on equity of 12.09%. During the same period in the prior year, the firm earned $0.52 EPS. As a group, sell-side analysts forecast that Two Harbors Investment will post 1.96 earnings per share for the current year.

In related news, CEO Thomas Siering acquired 3,500 shares of the firm’s stock in a transaction on Monday, November 12th. The shares were acquired at an average cost of $14.41 per share, with a total value of $50,435.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Brad Farrell sold 4,000 shares of the stock in a transaction on Thursday, November 15th. The shares were sold at an average price of $14.28, for a total transaction of $57,120.00. The disclosure for this sale can be found here. Company insiders own 1.41% of the company’s stock.

A number of institutional investors and hedge funds have recently bought and sold shares of TWO. Renaissance Technologies LLC purchased a new position in Two Harbors Investment during the second quarter valued at $16,902,000. Baird Financial Group Inc. acquired a new stake in shares of Two Harbors Investment in the second quarter valued at about $2,947,000. BB&T Securities LLC raised its position in shares of Two Harbors Investment by 57.7% in the second quarter. BB&T Securities LLC now owns 34,216 shares of the real estate investment trust’s stock valued at $540,000 after buying an additional 12,520 shares during the last quarter. Raymond James & Associates raised its position in shares of Two Harbors Investment by 46.8% in the second quarter. Raymond James & Associates now owns 95,683 shares of the real estate investment trust’s stock valued at $1,512,000 after buying an additional 30,505 shares during the last quarter. Finally, Voya Investment Management LLC raised its position in shares of Two Harbors Investment by 366.2% in the second quarter. Voya Investment Management LLC now owns 246,401 shares of the real estate investment trust’s stock valued at $3,893,000 after buying an additional 193,545 shares during the last quarter. 60.44% of the stock is currently owned by institutional investors and hedge funds.

About Two Harbors Investment

Two Harbors Investment Corp. operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS), non-agency securities, mortgage servicing rights, and other financial assets in the United States. Its target assets include agency RMBS collateralized by fixed rate mortgage loans, adjustable rate mortgage loans, hybrid mortgage loans, or derivatives; non-agency securities collateralized by prime mortgage loans, Alt-A mortgage loans, pay-option ARM loans, and subprime mortgage loans; and other assets, such as financial and mortgage-related assets, as well as residential mortgage loans and non-hedging transactions.

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