Two Harbors Investment (NYSE:TWO) Sets New 1-Year High - Time to Buy?

Two Harbors Investment Corp. (NYSE:TWO - Get Free Report)'s share price hit a new 52-week high during trading on Monday . The stock traded as high as $14.28 and last traded at $14.22, with a volume of 236176 shares trading hands. The stock had previously closed at $14.18.

Analysts Set New Price Targets

TWO has been the topic of several recent research reports. Royal Bank of Canada raised their price target on Two Harbors Investment from $12.00 to $13.00 and gave the stock a "sector perform" rating in a research report on Thursday, February 13th. JMP Securities restated a "market outperform" rating and set a $14.00 target price on shares of Two Harbors Investment in a report on Thursday, January 23rd. JPMorgan Chase & Co. upped their price target on Two Harbors Investment from $11.00 to $12.50 and gave the company a "neutral" rating in a research note on Friday, January 31st. StockNews.com raised shares of Two Harbors Investment from a "sell" rating to a "hold" rating in a research note on Wednesday, February 5th. Finally, Compass Point decreased 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 report on Monday, November 25th. Four investment analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $13.96.

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Two Harbors Investment Price Performance

The company has a debt-to-equity ratio of 0.84, a quick ratio of 1.07 and a current ratio of 1.09. The firm has a market capitalization of $1.47 billion, a price-to-earnings ratio of 6.68 and a beta of 1.84. The company has a 50-day moving average of $12.59 and a 200-day moving average of $12.66.

Two Harbors Investment (NYSE:TWO - Get Free Report) last released its quarterly earnings results on Wednesday, January 29th. The real estate investment trust reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.27 by ($0.07). Two Harbors Investment had a net margin of 66.24% and a return on equity of 6.52%. As a group, research analysts anticipate that Two Harbors Investment Corp. will post 0.81 EPS for the current fiscal year.

Two Harbors Investment Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, January 29th. Stockholders of record on Friday, January 3rd were issued a $0.45 dividend. The ex-dividend date of this dividend was Friday, January 3rd. This represents a $1.80 dividend on an annualized basis and a dividend yield of 12.77%. Two Harbors Investment's dividend payout ratio (DPR) is 85.31%.

Insider Transactions at Two Harbors Investment

In related news, CIO Nicholas Letica sold 3,956 shares of the stock in a transaction that occurred on Wednesday, January 8th. The stock was sold at an average price of $11.21, for a total transaction of $44,346.76. Following the completion of the transaction, the executive now directly owns 180,712 shares of the company's stock, valued at approximately $2,025,781.52. This represents a 2.14 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Rebecca B. Sandberg sold 3,785 shares of the firm's stock in a transaction on Friday, January 10th. The shares were sold at an average price of $11.14, for a total transaction of $42,164.90. Following the completion of the transaction, the insider now directly owns 152,378 shares of the company's stock, valued at $1,697,490.92. This represents a 2.42 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 33,136 shares of company stock valued at $377,154 over the last three months. Company insiders own 0.61% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. increased its stake in shares of Two Harbors Investment by 3.0% during the fourth quarter. Vanguard Group Inc. now owns 11,490,101 shares of the real estate investment trust's stock worth $135,928,000 after purchasing an additional 329,762 shares during the period. Allspring Global Investments Holdings LLC grew its holdings in Two Harbors Investment by 1.3% in the 4th quarter. Allspring Global Investments Holdings LLC now owns 5,350,945 shares of the real estate investment trust's stock valued at $64,158,000 after buying an additional 69,725 shares in the last quarter. State Street Corp increased its position 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 buying an additional 102,294 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Two Harbors Investment by 2.0% during the third quarter. Geode Capital Management LLC now owns 2,440,820 shares of the real estate investment trust's stock worth $33,885,000 after buying an additional 48,264 shares in the last quarter. Finally, Balyasny Asset Management L.P. boosted its position in shares of Two Harbors Investment by 19.1% in the fourth quarter. Balyasny Asset Management L.P. now owns 2,313,837 shares of the real estate investment trust's stock valued at $27,373,000 after acquiring an additional 371,436 shares during the period. 64.19% of the stock is currently owned by institutional investors.

About Two Harbors Investment

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.