Investors Buy High Volume of Call Options on Two Harbors Investment (NYSE:TWO)

Two Harbors Investment Corp. (NYSE:TWO) was the target of some unusual options trading activity on Thursday. Stock traders acquired 10,196 call options on the company. This represents an increase of 976% compared to the average volume of 948 call options.

NYSE:TWO opened at $7.61 on Friday. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.12 and a current ratio of 1.12. The stock has a market cap of $2.08 billion, a price-to-earnings ratio of 5.60 and a beta of 1.82. The company’s 50 day moving average price is $7.37. Two Harbors Investment has a 1-year low of $4.62 and a 1-year high of $7.89.

Two Harbors Investment (NYSE:TWO) last posted its earnings results on Wednesday, May 5th. The real estate investment trust reported $0.17 earnings per share for the quarter, missing the consensus estimate of $0.21 by ($0.04). Two Harbors Investment had a net margin of 147.30% and a return on equity of 13.10%. As a group, equities research analysts forecast that Two Harbors Investment will post 0.86 EPS for the current year.

The business also recently declared a quarterly dividend, which was paid on Thursday, April 29th. Investors of record on Monday, March 29th were issued a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 8.94%. The ex-dividend date of this dividend was Friday, March 26th. Two Harbors Investment’s payout ratio is presently 87.18%.

In other news, Director Thomas Siering sold 200,000 shares of the firm’s stock in a transaction dated Thursday, May 13th. The shares were sold at an average price of $6.98, for a total value of $1,396,000.00. Following the sale, the director now directly owns 549,706 shares in the company, valued at approximately $3,836,947.88. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.84% of the stock is currently owned by company insiders.

Hedge funds and other institutional investors have recently modified their holdings of the stock. California Public Employees Retirement System increased its holdings in Two Harbors Investment by 5.5% in the 4th quarter. California Public Employees Retirement System now owns 669,600 shares of the real estate investment trust’s stock worth $4,265,000 after acquiring an additional 34,610 shares in the last quarter. Rhumbline Advisers grew its holdings in shares of Two Harbors Investment by 12.5% during the fourth quarter. Rhumbline Advisers now owns 479,249 shares of the real estate investment trust’s stock worth $3,053,000 after buying an additional 53,402 shares in the last quarter. UBS Oconnor LLC grew its holdings in shares of Two Harbors Investment by 852.6% during the fourth quarter. UBS Oconnor LLC now owns 714,480 shares of the real estate investment trust’s stock worth $4,551,000 after buying an additional 639,480 shares in the last quarter. Penserra Capital Management LLC grew its holdings in shares of Two Harbors Investment by 9.1% during the fourth quarter. Penserra Capital Management LLC now owns 40,900 shares of the real estate investment trust’s stock worth $260,000 after buying an additional 3,410 shares in the last quarter. Finally, J.W. Cole Advisors Inc. grew its holdings in shares of Two Harbors Investment by 17.3% during the first quarter. J.W. Cole Advisors Inc. now owns 23,702 shares of the real estate investment trust’s stock worth $174,000 after buying an additional 3,495 shares in the last quarter. 59.08% of the stock is owned by institutional investors.

A number of analysts recently commented on TWO shares. BTIG Research reiterated a “hold” rating on shares of Two Harbors Investment in a research note on Friday, May 7th. TheStreet upgraded shares of Two Harbors Investment from a “d” rating to a “c” rating in a research note on Wednesday, May 26th. Finally, Zacks Investment Research upgraded shares of Two Harbors Investment from a “sell” rating to a “hold” rating in a research note on Saturday, May 22nd. Eight research analysts have rated the stock with a hold rating and one has given a buy rating to the company’s stock. Two Harbors Investment presently has an average rating of “Hold” and an average price target of $6.79.

About Two Harbors Investment

Two Harbors Investment Corp. operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS), non-agency securities, mortgage servicing rights, and other financial assets in the United States. Its target assets include agency RMBS collateralized by fixed rate mortgage loans, adjustable rate mortgage loans, and hybrid adjustable-rate mortgage (ARMs); and other assets, such as financial and mortgage-related assets, including non-agency securities and non-hedging transactions.

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