Two Harbors Investment Corp. (NYSE: TWO) stock fell -2.50% on Friday to $4.68 against a previous-day closing price of $4.80. With 2.2 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.75 million shares. During the session, the REIT – Mortgage company that operates in wider Real Estate sector, reached to the highest price of $4.8400 whereas the lowest price it dropped to was $4.6800. The 52-week range on TWO shows that it touched its highest point at $6.81 and its lowest point at $4.26 during that stretch. It currently has a 1-year price target of $5.21. With its current market cap of 1.61 billion, TWO has annualized dividend of $0.68 while the current yield stands at 14.53%. Beta for the stock currently stands at 1.59.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TWO was down-trending over the past week, with a drop of -4.68%, but this was down by -4.10% over a month. Three-month performance dropped to -0.43% while six-month performance fell -13.01%. The stock lost -27.67% in the past year, while it has lost -18.89% so far this year. A look at the trailing 12-month EPS for TWO yields 0.61 with Next year EPS estimates of 0.75. For the next quarter, that number is 0.21. This implies an EPS growth rate of 106.90% for this year and -6.81% for next year. EPS is expected to grow by 3.33% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -25.10%.
Float and Shares Shorts:
At present, 344.28 million TWO shares are outstanding with a float of 341.95 million shares on hand for trading. On Jul 14, 2022, short shares totaled 11.34 million, which was 3.30% higher than short shares on Jun 14, 2022. In addition to Mr. William Ross Greenberg as the firm’s Pres, CEO, Chief Investment Officer & Director, Ms. Mary Kathryn Riskey serves as its VP & CFO.
Through their ownership of 68.49% of TWO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 48.00% of TWO, in contrast to 16.85% held by mutual funds. Shares owned by individuals account for 1.26%. As the largest shareholder in TWO with 16.34% of the stake, BlackRock Fund Advisors holds 56,284,572 shares worth 56,284,572. A second-largest stockholder of TWO, The Vanguard Group, Inc., holds 37,415,164 shares, controlling over 10.86% of the firm’s shares. Allspring Global Investments LLC is the third largest shareholder in TWO, holding 15,521,937 shares or 4.51% stake. With a 7.41% stake in TWO, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 25,517,271 shares are owned by the mutual fund manager. The Allspring Special Small Cap Value, which owns about 3.62% of TWO stock, is the second-largest Mutual Fund holder. It holds 12,483,096 shares valued at 60.54 million. Vanguard Total Stock Market Index holds 3.00% of the stake in TWO, owning 10,327,035 shares worth 50.09 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TWO since 9 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With TWO analysts setting a high price target of $5.50 and a low target of $5.00, the average target price over the next 12 months is $5.21. Based on these targets, TWO could surge 17.52% to reach the target high and rise by 6.84% to reach the target low. Reaching the average price target will result in a growth of 11.32% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. TWO will report FY 2022 earnings on 02/08/2023. Analysts have provided yearly estimates in a range of $0.92 being high and $0.74 being low. For TWO, this leads to a yearly average estimate of $0.82. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Two Harbors Investment Corp. surprised analysts by $0.04 when it reported $0.22 EPS against a consensus estimate of $0.18. The surprise factor in the prior quarter was -$0.02. Based on analyst estimates, the high estimate for the next quarter is $0.26 and the low estimate is $0.19. The average estimate for the next quarter is thus $0.22.
Summary of Insider Activity:
Insiders traded TWO stock several times over the past three months with 1 Buys and 0 Sells. In these transactions, 207,693 shares were bought while 0 shares were sold. The number of buy transactions has increased to 10 while that of sell transactions has risen to 8 over the past year. The total number of shares bought during that period was 664,447 while 128,361 shares were sold.