Two Harbors Investment Corp. [NYSE: TWO] plunged by -$0.33 during the normal trading session on Wednesday and reaching a high of $6.40 during the day while it closed the day at $6.15. The company report on January 28, 2021 that Two Harbors Investment Corp. Announces Pricing of Convertible Senior Notes due 2026.
Two Harbors Investment Corp. (NYSE: TWO), an Agency + MSR mortgage real estate investment trust, announced the pricing of $250 million aggregate principal amount of 6.25% convertible senior notes due 2026 (the “Notes”) in an underwritten public offering. The company has granted to the underwriters of the offering a 13-day option to purchase up to an additional $37.5 million aggregate principal amount of the Notes to cover over-allotments, if any.
The Notes will be unsecured, pay interest semiannually at a rate of 6.25% per annum and be convertible at the option of the holder into shares of the company’s common stock. The Notes will mature in January 2026, unless earlier converted or repurchased in accordance with their terms. The company will not have the right to redeem the Notes prior to maturity, but may be required to repurchase the Notes from holders under certain circumstances.
Two Harbors Investment Corp. stock has also loss -3.61% of its value over the past 7 days. However, TWO stock has inclined by 18.04% in the 3 months of the year. Over the past six months meanwhile, it has gained 13.68% and lost -3.45% year-on date.
The market cap for TWO stock reached $1.67 billion, with 273.71 million shares outstanding and 271.36 million shares in the current float. Compared to the average trading volume of 3.46M shares, TWO reached a trading volume of 10107161 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say 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 $6.57 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 2.80. 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.
Keefe Bruyette have made an estimate for Two Harbors Investment Corp. shares, keeping their opinion on the stock as Mkt Perform, with their previous recommendation back on December 18, 2020. While these analysts kept the previous recommendation, Jefferies raised their target price to Hold. The new note on the price target was released on December 14, 2020, representing the official price target for Two Harbors Investment Corp. stock. Previously, the target price had yet another raise to $7, while Barclays analysts kept a Equal Weight rating on TWO stock.
The Average True Range (ATR) for Two Harbors Investment Corp. is set at 0.19 The Price to Book ratio for the last quarter was 0.82, with the Price to Cash per share for the same quarter was set at 5.94. Price to Free Cash Flow for TWO in the course of the last twelve months was 5.33.
TWO stock trade performance evaluation
Two Harbors Investment Corp. [TWO] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -3.61. With this latest performance, TWO shares dropped by -5.96% in over the last four-week period, additionally plugging by 13.68% over the last 6 months – not to mention a drop of -59.43% 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 41.41, with the RSI for the last a single of trading hit 35.63, and the three-weeks RSI is set at 45.35 for Two Harbors Investment Corp. [TWO]. The present Moving Average for the last 50 days of trading for this stock 6.44, while it was recorded at 6.42 for the last single week of trading, and 5.45 for the last 200 days.
Two Harbors Investment Corp. [TWO]: An insightful look at the core 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.
Earnings per share (EPS) analysis for Two Harbors Investment Corp. [TWO] stock
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 -10.60%.
Two Harbors Investment Corp. [TWO]: Insider Ownership positions
There are presently around $998 million, or 63.60% 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 0.86% of the total institutional ownership; VANGUARD GROUP INC, holding 24,565,439 shares of the stock with an approximate value of $151.08 million in TWO stocks shares; and GOLDMAN SACHS GROUP INC, currently with $59.36 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 February and at the time of the February reporting period, where 102 institutional holders increased their position in Two Harbors Investment Corp. [NYSE:TWO] by around 14,891,872 shares. Additionally, 139 investors decreased positions by around 21,460,333 shares, while 54 investors held positions by with 125,847,929 shares. The mentioned changes placed institutional holdings at 162,200,134 shares, according to the latest SEC report filing. TWO stock had 34 new institutional investments in for a total of 2,724,506 shares, while 37 institutional investors sold positions of 8,251,815 shares during the same period.