Two Harbors Investments (NYSE:TWO) Share Price Passes Above 200-Day Moving Average – Should You Sell?

Two Harbors Investments Corp (NYSE:TWO)’s share price passed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $10.46 and traded as high as $11.79. Two Harbors Investments shares last traded at $11.3680, with a volume of 2,988,335 shares.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the company. Maxim Group downgraded Two Harbors Investments from a “buy” rating to a “hold” rating in a research report on Thursday, December 18th. Wall Street Zen upgraded shares of Two Harbors Investments from a “sell” rating to a “hold” rating in a report on Saturday, November 1st. JPMorgan Chase & Co. cut their price target on shares of Two Harbors Investments from $13.50 to $12.50 and set a “neutral” rating on the stock in a report on Wednesday, February 4th. Weiss Ratings reissued a “sell (d)” rating on shares of Two Harbors Investments in a research note on Monday, December 29th. Finally, Zacks Research lowered Two Harbors Investments from a “hold” rating to a “strong sell” rating in a research report on Tuesday, January 27th. Seven investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce” and an average price target of $12.88.

Two Harbors Investments Stock Performance

The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 1.09. The company has a market capitalization of $1.18 billion, a PE ratio of -2.32 and a beta of 1.19. The firm’s 50-day simple moving average is $11.57 and its 200-day simple moving average is $10.46.

Two Harbors Investments (NYSE:TWO) last posted its quarterly earnings results on Monday, February 2nd. The real estate investment trust reported $0.26 earnings per share for the quarter, missing the consensus estimate of $0.30 by ($0.04). Two Harbors Investments had a negative net margin of 109.90% and a positive return on equity of 12.00%. The company had revenue of $182.18 million for the quarter, compared to the consensus estimate of ($15.44) million. On average, research analysts predict that Two Harbors Investments Corp will post 0.81 earnings per share for the current year.

Two Harbors Investments Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, January 29th. Stockholders of record on Monday, January 5th were given a dividend of $0.34 per share. The ex-dividend date of this dividend was Monday, January 5th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 12.0%. Two Harbors Investments’s dividend payout ratio is presently -27.81%.

Insider Transactions at Two Harbors Investments

In other news, insider Alecia Hanson sold 10,768 shares of the business’s stock in a transaction dated Friday, December 19th. The shares were sold at an average price of $11.41, for a total value of $122,862.88. Following the completion of the sale, the insider owned 45,288 shares in the company, valued at approximately $516,736.08. The trade was a 19.21% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Rebecca B. Sandberg sold 27,370 shares of the company’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 transaction of $312,839.10. Following the completion of the sale, the insider directly owned 156,718 shares of the company’s stock, valued at $1,791,286.74. The trade was a 14.87% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 129,389 shares of company stock valued at $1,483,046 over the last three months. 0.70% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Two Harbors Investments

Large investors have recently bought and sold shares of the business. Smartleaf Asset Management LLC boosted its position in Two Harbors Investments by 34.5% during the 4th quarter. Smartleaf Asset Management LLC now owns 3,825 shares of the real estate investment trust’s stock valued at $40,000 after acquiring an additional 981 shares in the last quarter. Amalgamated Bank boosted its position in Two Harbors Investments by 3.9% during the third quarter. Amalgamated Bank now owns 30,604 shares of the real estate investment trust’s stock valued at $302,000 after purchasing an additional 1,158 shares in the last quarter. Intech Investment Management LLC grew its stake in Two Harbors Investments by 1.4% in the third quarter. Intech Investment Management LLC now owns 85,985 shares of the real estate investment trust’s stock valued at $849,000 after purchasing an additional 1,202 shares during the last quarter. Wealth Enhancement Advisory Services LLC raised its holdings in Two Harbors Investments by 11.3% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 12,391 shares of the real estate investment trust’s stock worth $129,000 after purchasing an additional 1,261 shares in the last quarter. Finally, Osaic Holdings Inc. lifted its position in shares of Two Harbors Investments by 11.1% during the second quarter. Osaic Holdings Inc. now owns 13,130 shares of the real estate investment trust’s stock valued at $142,000 after buying an additional 1,309 shares during the last quarter. Institutional investors own 64.19% of the company’s stock.

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.