Two Harbors Investment Corp. [NYSE: TWO] gained 4.19% or 0.26 points to close at $6.46 with a heavy trading volume of 3416380 shares. The company report on November 5, 2020 that Two Harbors Investment Corp. Reports Third Quarter 2020 Financial Results.
Strong Performance From Agency Plus MSR Strategy.
Two Harbors Investment Corp. (NYSE: TWO), a mortgage real estate investment trust (REIT) that pairs investments in Agency mortgage servicing rights (MSR) with Agency residential mortgage-backed securities (RMBS), announced its financial results for the quarter ended September 30, 2020.
It opened the trading session at $6.40, the shares rose to $6.50 and dropped to $6.29, the range by which the price of stock traded the whole day. The daily chart for TWO points out that the company has recorded 43.56% gains over the past six months. However, it is still -187.11% lower than its most recent low trading price.
If we look at the average trading volume of 3.11M shares, TWO reached to a volume of 3416380 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about 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 $6.29 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.
Raymond James have made an estimate for Two Harbors Investment Corp. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on September 30, 2020. The new note on the price target was released on August 11, 2020, representing the official price target for Two Harbors Investment Corp. stock. Previously, the target price had yet another raise to $5.50, while JP Morgan analysts kept a Neutral rating on TWO stock.
The Average True Range (ATR) for Two Harbors Investment Corp. is set at 0.23 The Price to Book ratio for the last quarter was 0.87, with the Price to Cash per share for the same quarter was set at 6.15. Price to Free Cash Flow for TWO in the course of the last twelve months was 5.41.
Trading performance analysis for TWO stock
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 11.96. With this latest performance, TWO shares gained by 23.75% in over the last four-week period, additionally plugging by 43.56% over the last 6 months – not to mention a drop of -55.01% 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 72.56, with the RSI for the last a single of trading hit 77.76, and the three-weeks RSI is set at 68.60 for Two Harbors Investment Corp. [TWO]. The present Moving Average for the last 50 days of trading for this stock 5.34, while it was recorded at 6.14 for the last single week of trading, and 6.36 for the last 200 days.
Two Harbors Investment Corp. [TWO]: A deeper dive into fundamental analysis
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 Harbors Investment Corp. [TWO]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Two Harbors Investment Corp. posted 0.25/share EPS, while the average EPS was predicted by analysts to be reported at 0.36/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -30.60%. 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 -10.62%.
An analysis of insider ownership at Two Harbors Investment Corp. [TWO]
There are presently around $1,071 million, or 63.90% of TWO stock, in the hands of institutional investors. The top three institutional holders of TWO stocks are: BLACKROCK INC. with ownership of 25,705,995, which is approximately -4.717% of the company’s market cap and around 0.20% of the total institutional ownership; VANGUARD GROUP INC, holding 24,565,439 shares of the stock with an approximate value of $158.69 million in TWO stocks shares; and GOLDMAN SACHS GROUP INC, currently with $62.35 million in TWO stock with ownership of nearly 16.907% of the company’s market capitalization.
Positions in Two Harbors Investment Corp. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 104 institutional holders increased their position in Two Harbors Investment Corp. [NYSE:TWO] by around 15,120,504 shares. Additionally, 142 investors decreased positions by around 22,402,728 shares, while 56 investors held positions by with 128,319,894 shares. The mentioned changes placed institutional holdings at 165,843,126 shares, according to the latest SEC report filing. TWO stock had 34 new institutional investments in for a total of 2,755,943 shares, while 43 institutional investors sold positions of 9,264,773 shares during the same period.