StockNews.com Downgrades Two Harbors Investment (NYSE:TWO) to Sell

Two Harbors Investment (NYSE:TWO) was downgraded by investment analysts at StockNews.com from a “hold” rating to a “sell” rating in a research report issued on Tuesday.

A number of other analysts have also commented on the company. Compass Point began coverage on Two Harbors Investment in a research report on Thursday, October 3rd. They issued a “buy” rating and a $15.75 price objective for the company. JPMorgan Chase & Co. boosted their price target on shares of Two Harbors Investment from $12.50 to $13.00 and gave the stock a “neutral” rating in a research note on Tuesday, July 16th. JMP Securities cut their price objective on shares of Two Harbors Investment from $15.00 to $14.50 and set a “market outperform” rating on the stock in a report on Thursday, October 17th. Finally, Janney Montgomery Scott assumed coverage on shares of Two Harbors Investment in a research report on Friday, August 16th. They set a “buy” rating and a $15.00 target price for the company. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and four have assigned a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $14.71.

Two Harbors Investment Stock Performance

NYSE TWO opened at $11.78 on Tuesday. The firm has a market cap of $1.22 billion, a price-to-earnings ratio of 28.72 and a beta of 1.85. The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 0.97. Two Harbors Investment has a 1-year low of $10.34 and a 1-year high of $14.59. The company has a 50 day moving average of $13.43 and a 200-day moving average of $13.18.

Two Harbors Investment (NYSE:TWO) last issued its quarterly earnings data on Monday, October 28th. The real estate investment trust reported $0.13 EPS for the quarter, missing analysts’ consensus estimates of $0.35 by ($0.22). Two Harbors Investment had a return on equity of 3.64% and a net margin of 27.71%. The company had revenue of $112.64 million for the quarter. During the same quarter in the prior year, the company posted ($0.01) earnings per share. On average, equities analysts forecast that Two Harbors Investment will post 0.7 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in TWO. Northwestern Mutual Wealth Management Co. increased its position in shares of Two Harbors Investment by 1,680.0% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,225 shares of the real estate investment trust’s stock worth $29,000 after acquiring an additional 2,100 shares in the last quarter. PNC Financial Services Group Inc. raised its stake in shares of Two Harbors Investment by 38.7% in the 4th quarter. PNC Financial Services Group Inc. now owns 8,258 shares of the real estate investment trust’s stock valued at $115,000 after purchasing an additional 2,306 shares during the period. QRG Capital Management Inc. bought a new stake in shares of Two Harbors Investment in the second quarter valued at about $144,000. AQR Capital Management LLC acquired a new position in shares of Two Harbors Investment during the second quarter worth about $147,000. Finally, Legacy Financial Strategies LLC acquired a new position in shares of Two Harbors Investment during the second quarter worth about $170,000. 64.19% of the stock is owned by institutional investors and hedge funds.

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.