Two Harbors Investment (NYSE:TWO) Reaches New 52-Week Low – Should You Sell?

Two Harbors Investment Corp. (NYSE:TWO)’s share price hit a new 52-week low during trading on Tuesday . The company traded as low as $10.84 and last traded at $11.12, with a volume of 1107174 shares changing hands. The stock had previously closed at $11.10.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the company. StockNews.com raised Two Harbors Investment to a “sell” rating in a research note on Thursday, December 12th. JPMorgan Chase & Co. dropped 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, October 30th. Royal Bank of Canada decreased 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 research note on Friday, November 1st. Compass Point dropped 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 research note on Monday, November 25th. Finally, JMP Securities decreased their target price on shares of Two Harbors Investment from $15.00 to $14.50 and set a “market outperform” rating on the stock in a research note on Thursday, October 17th. One analyst has rated the stock with a sell rating, three have given a hold rating and four have given a buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $13.71.

Two Harbors Investment Stock Performance

The firm’s 50 day moving average price is $11.69 and its two-hundred day moving average price is $12.78. The firm has a market cap of $1.15 billion, a PE ratio of -2.31 and a beta of 1.83. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.07 and a current ratio of 1.07.

Two Harbors Investment (NYSE:TWO) last posted its earnings results on Monday, October 28th. The real estate investment trust reported $0.13 earnings per share (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 business had revenue of $112.64 million for the quarter. During the same period last year, the business posted ($0.01) earnings per share. On average, research analysts forecast that Two Harbors Investment Corp. will post 0.47 earnings per share for the current year.

Two Harbors Investment Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, January 29th. Shareholders of record on Friday, January 3rd will be given a $0.45 dividend. The ex-dividend date of this dividend is Friday, January 3rd. This represents a $1.80 dividend on an annualized basis and a yield of 16.19%. Two Harbors Investment’s payout ratio is currently -37.34%.

Insider Buying and Selling at Two Harbors Investment

In other news, insider Rebecca B. Sandberg sold 5,025 shares of the firm’s stock in a transaction on Wednesday, January 8th. The stock was sold at an average price of $11.21, for a total transaction of $56,330.25. Following the completion of the transaction, the insider now directly owns 156,163 shares in the company, valued at $1,750,587.23. This trade represents a 3.12 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CIO Nicholas Letica sold 3,956 shares of the business’s stock in a transaction on Wednesday, January 8th. The shares were sold at an average price of $11.21, for a total value of $44,346.76. Following the completion of the sale, the executive now owns 180,712 shares in the company, valued at $2,025,781.52. This represents a 2.14 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 19,973 shares of company stock worth $223,149 over the last three months. Insiders own 0.61% of the company’s stock.

Hedge Funds Weigh In On Two Harbors Investment

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Allspring Global Investments Holdings LLC raised its stake in Two Harbors Investment by 1.6% in the third quarter. Allspring Global Investments Holdings LLC now owns 5,281,220 shares of the real estate investment trust’s stock valued at $73,303,000 after buying an additional 84,038 shares in the last quarter. State Street Corp boosted its stake in Two Harbors Investment by 2.7% during the 3rd quarter. State Street Corp now owns 3,877,111 shares of the real estate investment trust’s stock worth $53,814,000 after purchasing an additional 102,294 shares during the period. Geode Capital Management LLC grew its position in Two Harbors Investment by 2.0% during the 3rd quarter. Geode Capital Management LLC now owns 2,440,820 shares of the real estate investment trust’s stock worth $33,885,000 after purchasing an additional 48,264 shares during the last quarter. Charles Schwab Investment Management Inc. increased its stake in Two Harbors Investment by 2.3% in the third quarter. Charles Schwab Investment Management Inc. now owns 1,484,543 shares of the real estate investment trust’s stock valued at $20,605,000 after purchasing an additional 33,852 shares during the period. Finally, Rhumbline Advisers raised its holdings in shares of Two Harbors Investment by 1.1% in the second quarter. Rhumbline Advisers now owns 310,806 shares of the real estate investment trust’s stock valued at $4,106,000 after buying an additional 3,408 shares during the last quarter. Hedge funds and other institutional investors own 64.19% of the company’s stock.

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.