Two Harbors Investments (NYSE:TWO) Stock Passes Above 200 Day Moving Average – Here’s Why

Shares of Two Harbors Investments Corp (NYSE:TWO) crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $10.09 and traded as high as $10.97. Two Harbors Investments shares last traded at $10.5810, with a volume of 2,560,001 shares.

Analysts Set New Price Targets

A number of brokerages have weighed in on TWO. Wall Street Zen raised shares of Two Harbors Investments from a “sell” rating to a “hold” rating in a research note on Saturday, November 1st. Zacks Research raised shares of Two Harbors Investments from a “hold” rating to a “strong-buy” rating in a report on Wednesday, November 5th. UBS Group dropped their price objective on shares of Two Harbors Investments from $12.00 to $11.00 and set a “buy” rating for the company in a research report on Wednesday, September 3rd. Maxim Group lowered Two Harbors Investments from a “buy” rating to a “hold” rating in a research report on Thursday, December 18th. Finally, JPMorgan Chase & Co. lifted their target price on Two Harbors Investments from $9.50 to $10.00 and gave the company a “neutral” rating in a research note on Monday, October 20th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $11.96.

Two Harbors Investments Stock Performance

The company has a debt-to-equity ratio of 1.13, a current ratio of 1.09 and a quick ratio of 1.09. The company has a market cap of $1.10 billion, a price-to-earnings ratio of -4.23 and a beta of 1.20. The stock has a 50-day moving average price of $10.06 and a 200 day moving average price of $10.09.

Two Harbors Investments (NYSE:TWO) last announced its quarterly earnings results on Monday, March 7th. The real estate investment trust reported $0.24 earnings per share for the quarter. Two Harbors Investments had a negative net margin of 44.10% and a positive return on equity of 11.92%. The firm had revenue of ($18.67) million for the quarter. As a group, analysts anticipate that Two Harbors Investments Corp will post 0.81 EPS for the current fiscal year.

Two Harbors Investments Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, January 29th. Shareholders of record on Monday, January 5th will be issued a dividend of $0.34 per share. This represents a $1.36 dividend on an annualized basis and a yield of 12.9%. The ex-dividend date is Monday, January 5th. Two Harbors Investments’s dividend payout ratio is -54.40%.

Insider Transactions at Two Harbors Investments

In related news, CFO William Dellal sold 7,087 shares of Two Harbors Investments stock in a transaction that occurred on Monday, December 22nd. The stock was sold at an average price of $11.44, for a total value of $81,075.28. Following the sale, the chief financial officer owned 36,703 shares of the company’s stock, valued at approximately $419,882.32. This trade represents a 16.18% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CIO Nicholas Letica sold 55,488 shares of the business’s stock in a transaction that occurred on Friday, December 19th. The shares were sold at an average price of $11.42, for a total value of $633,672.96. Following the completion of the sale, the executive owned 166,507 shares in the company, valued at $1,901,509.94. The trade was a 25.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 124,307 shares of company stock worth $1,420,130. 0.70% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Two Harbors Investments

Several hedge funds have recently made changes to their positions in TWO. Allspring Global Investments Holdings LLC increased its stake in Two Harbors Investments by 1.7% in the 2nd quarter. Allspring Global Investments Holdings LLC now owns 5,240,983 shares of the real estate investment trust’s stock valued at $57,074,000 after buying an additional 88,518 shares during the last quarter. Millennium Management LLC boosted its stake in shares of Two Harbors Investments by 45.3% during the 3rd quarter. Millennium Management LLC now owns 4,535,534 shares of the real estate investment trust’s stock worth $44,766,000 after buying an additional 1,415,062 shares during the last quarter. Balyasny Asset Management L.P. grew its holdings in shares of Two Harbors Investments by 490.7% in the 2nd quarter. Balyasny Asset Management L.P. now owns 3,583,939 shares of the real estate investment trust’s stock valued at $38,599,000 after acquiring an additional 2,977,196 shares in the last quarter. Invesco Ltd. increased its position in shares of Two Harbors Investments by 44.5% in the second quarter. Invesco Ltd. now owns 2,649,977 shares of the real estate investment trust’s stock valued at $28,540,000 after acquiring an additional 815,931 shares during the last quarter. Finally, Algebris UK Ltd. acquired a new stake in shares of Two Harbors Investments in the third quarter valued at about $17,558,000. 64.19% of the stock is owned by institutional investors.

About Two Harbors Investments

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.