Two Harbors Investments (NYSE:TWO) Stock Price Down 13.4% – Here’s Why

Two Harbors Investments Corp (NYSE:TWO) shares fell 13.4% during mid-day trading on Friday . The company traded as low as $11.81 and last traded at $11.5050. 668,020 shares were traded during trading, a decline of 81% from the average session volume of 3,425,810 shares. The stock had previously closed at $13.29.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the stock. Maxim Group downgraded shares of Two Harbors Investments from a “buy” rating to a “hold” rating in a research note on Thursday, December 18th. JPMorgan Chase & Co. increased their price target on shares of Two Harbors Investments from $9.50 to $10.00 and gave the stock a “neutral” rating in a report on Monday, October 20th. Wall Street Zen upgraded shares of Two Harbors Investments from a “sell” rating to a “hold” rating in a research report on Saturday, November 1st. Weiss Ratings reiterated a “sell (d)” rating on shares of Two Harbors Investments in a research report on Monday, December 29th. Finally, Zacks Research cut Two Harbors Investments from a “hold” rating to a “strong sell” rating in a research note on Tuesday, January 27th. Seven equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Reduce” and an average target price of $12.46.

Two Harbors Investments Stock Performance

The company has a market cap of $1.19 billion, a P/E ratio of -4.57 and a beta of 1.19. The company’s fifty day moving average is $11.31 and its 200 day moving average is $10.38. The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 1.13.

Two Harbors Investments Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, January 29th. Investors of record on Monday, January 5th were issued a dividend of $0.34 per share. The ex-dividend date was Monday, January 5th. This represents a $1.36 annualized dividend and a yield of 11.9%. Two Harbors Investments’s dividend payout ratio is currently -54.40%.

Insider Buying and Selling at Two Harbors Investments

In other Two Harbors Investments news, insider Robert Rush sold 23,594 shares of the business’s stock in a transaction that occurred on Friday, December 19th. The stock was sold at an average price of $11.43, for a total value of $269,679.42. Following the completion of the sale, the insider owned 98,207 shares in the company, valued at approximately $1,122,506.01. The trade was a 19.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO William Dellal sold 7,087 shares of the firm’s stock in a transaction that occurred on Monday, December 22nd. The stock was sold at an average price of $11.44, for a total transaction of $81,075.28. Following the completion of the transaction, the chief financial officer owned 36,703 shares in the company, valued at $419,882.32. This represents a 16.18% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 129,389 shares of company stock worth $1,483,046 over the last quarter. Company insiders own 0.70% of the company’s stock.

Hedge Funds Weigh In On Two Harbors Investments

A number of hedge funds have recently modified their holdings of the company. Mowery & Schoenfeld Wealth Management LLC purchased a new stake in shares of Two Harbors Investments during the third quarter worth about $25,000. AlphaQuest LLC raised its position in Two Harbors Investments by 240.4% during the 2nd quarter. AlphaQuest LLC now owns 3,370 shares of the real estate investment trust’s stock valued at $36,000 after purchasing an additional 2,380 shares during the last quarter. Quarry LP lifted its holdings in Two Harbors Investments by 695.6% in the 3rd 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 during the period. Advisory Services Network LLC bought a new stake in shares of Two Harbors Investments in the 3rd quarter worth approximately $42,000. Finally, CWM LLC grew its position in shares of Two Harbors Investments by 456.0% in the 3rd quarter. CWM LLC now owns 5,465 shares of the real estate investment trust’s stock worth $54,000 after buying an additional 4,482 shares during the last quarter. Hedge funds and other institutional investors own 64.19% of the company’s stock.

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.