Two Harbors Investment (TWO) Stock Price, News & Analysis

Company Overview

Two Harbors Investment Corp. is an externally managed REIT focused on the US residential mortgage market. The company strives to produce risk-adjusted returns by managing a portfolio of RMBS and other loans paired with a mortgage servicing business. The company delivers returns in the form of dividends primarily with a secondary goal of capital growth. The firm was incorporated in 2009 and is headquartered in Minnesota.

Two Harbors Investment Corp. is in business to invest in, finance, and manage a portfolio of residential mortgage-backed securities. These may include non-agency securities and mortgage servicing rights as well as other financial assets (about 5% to 10% of the portfolio). However, the bulk of the portfolio is in agency-backed RMBS. The fund's strategy of pairing a mortgage servicing business with an RMBS portfolio is unique in the industry and provides many advantages for investors that include reducing exposure to interest rate fluctuations and their impact on mortgage spread.

The company’s focus on agency-backed RMBS provides a level of safety because the principal and interest are backed by Fannie Mae, Freddie Mac, or other government agencies.

The company’s portfolio of mortgage servicing rights allows the company to capitalize on its experience in mitigating credit risk and is supported by a robust pipeline of new business. Originators provide new business on a continual basis as new loans are created. The company may also buy bundled loans from originators or other mortgage loan owners in order to earn fees for services.

Two Harbors Investment Corp. chooses to be taxed as a REIT. As such, the company distributes at least 90% of its taxable income in the form of dividends. Two Harbors Investment Corp. was externally managed until 2020. The switch to internal management better aligns the company’s goals with those of shareholders and improves the transparency of operations. Investors who wish to enroll in a share purchase or DRIP, dividend reinvestment program, should contact the company’s plan administrator, Equiniti Trust Company. Investors must be shareholders of record to participate in the plan.

 

Written by Jeffrey Neal Johnson

Key Stats

• Today's Range: $11.39 to $11.61
• 50-Day Range: $11.40 to $14.19
• 52-Week Range: $11.28 to $14.59
• Volume: 857,934 shs
• Average Volume: 1.43 million shs
• Market Capitalization: $1.19 billion
• P/E Ratio: N/A
• Dividend Yield: 15.70%
• Price Target: $14.32
• Consensus Rating: Moderate Buy

Two Harbors Investment Stock Analysis - MarketRank™

Two Harbors Investment scored higher than 64% of companies evaluated by MarketBeat, and ranked 553rd out of 930 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.3 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Two Harbors Investment has received a consensus rating of Moderate Buy. The company's average rating score is 2.50, and is based on 4 buy ratings, 4 hold ratings, and no sell ratings.

Amount of Analyst Coverage

Two Harbors Investment has only been the subject of 4 research reports in the past 90 days.

Earnings and Valuation

• Score: 2.5 / 5
• Proj. Earnings Growth: 72.34%

Earnings Growth

Earnings for Two Harbors Investment are expected to grow by 72.34% in the coming year, from $0.47 to $0.81 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Two Harbors Investment is -2.38, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.

Price to Earnings Ratio vs. Sector

The P/E ratio of Two Harbors Investment is -2.38, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.

Price to Book Value per Share Ratio

Two Harbors Investment has a P/B Ratio of 0.69. P/B Ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

3.14% of the float of Two Harbors Investment has been sold short.

Short Interest Ratio / Days to Cover

Two Harbors Investment has a short interest ratio ("days to cover") of 3, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Two Harbors Investment has recently increased by 25.78%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Leadership

Two Harbors Investment is a leading dividend payer. It pays a dividend yield of 15.50%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

Two Harbors Investment does not have a long track record of dividend growth.

Dividend Sustainability

Based on EPS estimates, Two Harbors Investment will have a dividend payout ratio of 222.22% in the coming year. This indicates that Two Harbors Investment may not be able to sustain their current dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

3.14% of the float of Two Harbors Investment has been sold short.

Short Interest Ratio / Days to Cover

Two Harbors Investment has a short interest ratio ("days to cover") of 3, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Two Harbors Investment has recently increased by 25.78%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 2.3 / 5
• News Sentiment: 1.21

News Sentiment

Two Harbors Investment has a news sentiment score of 1.21. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.77 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 2 news articles for Two Harbors Investment this week, compared to 3 articles on an average week.

Search Interest

Only 19 people have searched for TWO on MarketBeat in the last 30 days. This is a decrease of -46% compared to the previous 30 days.

MarketBeat Follows

Only 3 people have added Two Harbors Investment to their MarketBeat watchlist in the last 30 days. This is a decrease of -70% compared to the previous 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Two Harbors Investment insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 0.61% of the stock of Two Harbors Investment is held by insiders.

Percentage Held by Institutions

64.19% of the stock of Two Harbors Investment is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

TWO Stock Analysis - Frequently Asked Questions

How have TWO shares performed this year?

Two Harbors Investment's stock was trading at $13.93 at the beginning of 2024. Since then, TWO stock has decreased by 17.7% and is now trading at $11.4650.
View the best growth stocks for 2024 here.

How were Two Harbors Investment's earnings last quarter?

Two Harbors Investment Corp. (NYSE:TWO) issued its earnings results on Monday, October, 28th. The real estate investment trust reported $0.13 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.35 by $0.22. The real estate investment trust had revenue of $112.64 million for the quarter. Two Harbors Investment had a positive trailing twelve-month return on equity of 4.45% and a negative net margin of 87.84%.

When did Two Harbors Investment's stock split?

Two Harbors Investment's stock reverse split on the morning of Wednesday, November 2nd 2022. The 1-4 reverse split was announced on Wednesday, November 2nd 2022. The number of shares owned by shareholders was adjusted after the closing bell on Wednesday, November 2nd 2022. An investor that had 100 shares of stock prior to the reverse split would have 25 shares after the split.

Who are Two Harbors Investment's major shareholders?

Top institutional investors of Two Harbors Investment include Allspring Global Investments Holdings LLC (5.10%), State Street Corp (3.74%), Geode Capital Management LLC (2.35%) and Massachusetts Financial Services Co. MA (2.06%). Insiders that own company stock include William Ross Greenberg, Nicholas Letica, Rebecca B Sandberg, Stephen G Kasnet, Mary Kathryn Riskey, Robert Rush, Jason Vinar, Matthew Keen and Alecia Hanson.
View institutional ownership trends.

How do I buy shares of Two Harbors Investment?

Shares of TWO stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Two Harbors Investment own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Two Harbors Investment investors own include American Water Works (AWK), DiamondRock Hospitality (DRH), Waste Connections (WCN), The RMR Group (RMR), AUO (AUOTY), Humana (HUM) and iShares Micro-Cap ETF (IWC).

Company Calendar

• Ex-Dividend for 10/29 Dividend: 10/01/2024
• Last Earnings: 10/28/2024
• Dividend Payable: 10/29/2024
• Today: 11/20/2024
• Fiscal Year End: 12/31/2024
• Next Earnings (Estimated): 2/03/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Finance
• Industry: Real estate investment trusts
• Sub-Industry: Mortgage REITs
• Current Symbol: NYSE:TWO
• CUSIP: 90187B10
• CIK: 1465740
• Web: www.twoharborsinvestment.com
• Phone: (612) 453-4100
• Fax: 212-364-3289
• Employees: 100
• Year Founded: N/A

Price Target and Rating

• Average Stock Price Target: $14.32
• High Stock Price Target: $17.00
• Low Stock Price Target: $11.50
• Potential Upside/Downside: +24.9%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.50
• Research Coverage: 8 Analysts

Profitability

• EPS (Most Recent Fiscal Year): ($4.82)
• Trailing P/E Ratio: N/A
• Forward P/E Ratio: 24.39
• P/E Growth: N/A
• Net Income: $-106,370,000.00
• Net Margins: -87.84%
• Pretax Margin: -90.73%
• Return on Equity: 4.45%
• Return on Assets: 0.55%

Debt

• Debt-to-Equity Ratio: 0.80
• Current Ratio: 1.07
• Quick Ratio: 1.07

Sales & Book Value

• Annual Sales: $480.36 million
• Price / Sales: 2.47
• Cash Flow: $0.69 per share
• Price / Cash Flow: 16.69
• Book Value: $16.53 per share
• Price / Book: 0.69

Miscellaneous

• Outstanding Shares: 103,650,000
• Free Float: 103,018,000
• Market Cap: $1.19 billion
• Optionable: Optionable
• Beta: 1.87