Two Harbors Investment Corp. [NYSE: TWO] price plunged by -1.99 percent to reach at -$0.11. The company report on July 21, 2020 that Two Harbors Announces Termination of Management Agreement.
Two Harbors Investment Corp. (“Two Harbors” or the “Company”) (NYSE: TWO) announced today that it has provided PRCM Advisers LLC (the “Manager”) with a notice of termination of the Management Agreement between the Company and the Manager. The Company terminated the Management Agreement for “cause” in accordance with Section 15(a) thereof on the basis of the Manager’s material breaches of the Management Agreement and gross negligence in the performance of its duties thereunder. The notice of termination specifies that the Management Agreement will terminate on August 14, 2020. No termination fee will be payable to the Manager in connection with the termination.
The Company previously disclosed that it had elected not to renew the Management Agreement on the basis of unfair compensation payable to the Manager in accordance with Section 13(a)(ii) thereof. In connection with the non-renewal, the Company had expected the Management Agreement to terminate on September 19, 2020, at which time the Company would have been required to pay the Manager a termination fee previously estimated to be approximately $144 million. Because the Management Agreement is now being terminated for cause, however, no termination fee will be payable to the Manager.
A sum of 3540615 shares traded at recent session while its average daily volume was at 8.93M shares. Two Harbors Investment Corp. shares reached a high of $5.57 and dropped to a low of $5.34 until finishing in the latest session at $5.43.
The one-year TWO stock forecast points to a potential upside of 9.5. The average equity rating for TWO stock is currently 2.20, trading closer to a bullish pattern in the stock market.
Guru’s Opinion on Two Harbors Investment Corp. [TWO]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for TWO shares is $6.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on TWO stock is a recommendation set at 2.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
JP Morgan have made an estimate for Two Harbors Investment Corp. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on July 28, 2020. The new note on the price target was released on April 13, 2020, representing the official price target for Two Harbors Investment Corp. stock.
The Average True Range (ATR) for Two Harbors Investment Corp. is set at 0.24 The Price to Book ratio for the last quarter was 0.77, with the Price to Cash per share for the same quarter was set at 4.32. Price to Free Cash Flow for TWO in the course of the last twelve months was 2.83.
TWO Stock Performance Analysis:
Two Harbors Investment Corp. [TWO] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 3.04. With this latest performance, TWO shares gained by 9.26% in over the last four-week period, additionally sinking by -64.42% over the last 6 months – not to mention a drop of -59.30% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for TWO stock in for the last two-week period is set at 55.59, with the RSI for the last a single of trading hit 57.50, and the three-weeks RSI is set at 53.83 for Two Harbors Investment Corp. [TWO]. The present Moving Average for the last 50 days of trading for this stock 5.13, while it was recorded at 5.44 for the last single week of trading, and 9.79 for the last 200 days.
Insight into Two Harbors Investment Corp. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Two Harbors Investment Corp. [TWO] shares currently have an operating margin of +17.10 and a Gross Margin at +92.90. Two Harbors Investment Corp.’s Net Margin is presently recorded at +17.06.
Return on Total Capital for TWO is now 1.01, given the latest momentum, and Return on Invested Capital for the company is 6.12. Return on Equity for this stock inclined to 7.02, with Return on Assets sitting at 0.98. When it comes to the capital structure of this company, Two Harbors Investment Corp. [TWO] has a Total Debt to Total Equity ratio set at 610.34. Additionally, TWO Total Debt to Total Capital is recorded at 85.92, with Total Debt to Total Assets ending up at 84.45. Long-Term Debt to Equity for the company is recorded at 18.27, with the Long-Term Debt to Total Capital now at 2.07.
Receivables Turnover for the company is 5.66 with a Total Asset Turnover recorded at a value of 0.06.
TWO Stock EPS
With the latest financial reports released by the company, Two Harbors Investment Corp. posted 0.39/share EPS, while the average EPS was predicted by analysts to be reported at 0.42/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -7.10%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for TWO. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Two Harbors Investment Corp. go to -6.76%.
Two Harbors Investment Corp. [TWO] Insider Position Details
There are presently around $873 million, or 60.30% of TWO stock, in the hands of institutional investors. The top three institutional holders of TWO stocks are: VANGUARD GROUP INC with ownership of 25,192,866, which is approximately -3.763% of the company’s market cap and around 0.20% of the total institutional ownership; BLACKROCK INC., holding 17,275,513 shares of the stock with an approximate value of $93.81 million in TWO stocks shares; and CAPITAL RESEARCH GLOBAL INVESTORS, currently with $45.71 million in TWO stock with ownership of nearly -8.235% of the company’s market capitalization.
Positions in Two Harbors Investment Corp. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 164 institutional holders increased their position in Two Harbors Investment Corp. [NYSE:TWO] by around 29,904,071 shares. Additionally, 162 investors decreased positions by around 36,267,887 shares, while 49 investors held positions by with 94,576,242 shares. The mentioned changes placed institutional holdings at 160,748,200 shares, according to the latest SEC report filing. TWO stock had 57 new institutional investments in for a total of 11,718,262 shares, while 64 institutional investors sold positions of 14,395,458 shares during the same period.