Two Harbors Investment Corp. (NYSE: TWO) stock jumped 1.60% on Thursday to $13.93 against a previous-day closing price of $13.71. With 0.76 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.89 million shares. During the session, the REIT – Mortgage company that operates in wider Real Estate sector, reached to the highest price of $14.02 whereas the lowest price it dropped to was $13.72. The 52-week range on TWO shows that it touched its highest point at $19.87 and its lowest point at $11.57 during that stretch. It currently has a 1-year price target of $14.50. With its current market cap of 1.33 billion, TWO has annualized dividend of $1.80 while the current yield stands at 12.92%. Beta for the stock currently stands at 1.75.
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 up-trending over the past week, with a rise of 4.11%, but this was up by 6.66% over a month. Three-month performance dropped to -0.07% while six-month performance fell -2.66%. The stock lost -28.49% in the past year, while it has lost -11.67% so far this year. A look at the trailing 12-month EPS for TWO yields -0.42 with Next year EPS estimates of 2.00. For the next quarter, that number is 0.49. This implies an EPS growth rate of 24.10% for this year and 24.09% 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 -19.10%.
Float and Shares Shorts:
At present, 96.39 million TWO shares are outstanding with a float of 95.62 million shares on hand for trading. On Aug 14, 2023, short shares totaled 2.11 million, which was 2.19% higher than short shares on Jul 13, 2023. In addition to Mr. William Ross Greenberg as the firm’s Pres, CEO & Director, Ms. Mary Kathryn Riskey serves as its VP & CFO.
Through their ownership of 66.76% of TWO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 46.91% of TWO, in contrast to 18.80% held by mutual funds. Shares owned by individuals account for 0.88%. As the largest shareholder in TWO with 16.17% of the stake, BlackRock Fund Advisors holds 15,632,446 shares worth 15,632,446. A second-largest stockholder of TWO, The Vanguard Group, Inc., holds 10,539,838 shares, controlling over 10.90% of the firm’s shares. Allspring Global Investments LLC is the third largest shareholder in TWO, holding 5,079,741 shares or 5.26% stake. With a 7.10% stake in TWO, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 6,858,859 shares are owned by the mutual fund manager. The Allspring Special Small Cap Value, which owns about 4.32% of TWO stock, is the second-largest Mutual Fund holder. It holds 4,170,786 shares valued at 55.93 million. Vanguard Total Stock Market ETF holds 3.05% of the stake in TWO, owning 2,950,722 shares worth 39.57 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TWO since 0 analysts follow the stock currently. 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 $16.00 and a low target of $13.50, the average target price over the next 12 months is $14.50. Based on these targets, TWO could surge 14.86% to reach the target high and fall by -3.09% to reach the target low. Reaching the average price target will result in a growth of 4.09% 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.
Summary of Insider Activity:
Insiders traded TWO stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 14 while that of sell transactions has risen to 23 over the past year. The total number of shares bought during that period was 231,046 while 61,033 shares were sold.