Is Two Harbors Stock a Good Investment?
Two Harbors Investment Advice | TWO |
- Examine Two Harbors' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Two Harbors' leadership team and their track record. Good management can help Two Harbors navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Mortgage Real Estate Investment Trusts (REITs) space and any emerging trends that could impact Two Harbors' business and its evolving consumer preferences.
- Compare Two Harbors' performance and market position to its competitors. Analyze how Two Harbors is positioned in terms of product offerings, innovation, and market share.
- Check if Two Harbors pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Two Harbors' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Two Harbors Investments stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Two Harbors Investments is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Two Harbors Stock
Researching Two Harbors' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 67.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 0.79. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Two Harbors Investments recorded a loss per share of 4.8. The entity last dividend was issued on the 1st of October 2024. The firm had 1:4 split on the 2nd of November 2022.
To determine if Two Harbors is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Two Harbors' research are outlined below:
| Two Harbors generated a negative expected return over the last 90 days | |
| Two Harbors has high likelihood to experience some financial distress in the next 2 years | |
| Two Harbors Investments has 1.89 B in debt with debt to equity (D/E) ratio of 5.57, demonstrating that the company may be unable to create cash to meet all of its financial commitments. Two Harbors Investments has a current ratio of 0.2, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Two to invest in growth at high rates of return. | |
| Reported Net Loss for the year was (106.37 M) with loss before taxes, overhead, and interest of (15.43 M). | |
| About 67.0% of Two Harbors shares are owned by institutional investors | |
| On 29th of October 2024 Two Harbors paid $ 0.45 per share dividend to its current shareholders | |
| Latest headline from insidermonkey.com: Two Harbors Investment Corp. Q3 2024 Earnings Call Transcript |
Two Harbors uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Two Harbors Investments. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Two Harbors' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 29th of January 2024 Upcoming Quarterly Report | View | |
| 6th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 29th of January 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Two Harbors' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Two Harbors' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-01-29 | 2023-12-31 | -0.06 | -0.11 | -0.05 | 83 | ||
2024-07-30 | 2024-06-30 | 0.32 | 0.17 | -0.15 | 46 | ||
2022-11-08 | 2022-09-30 | 0.79 | 0.64 | -0.15 | 18 | ||
2022-08-03 | 2022-06-30 | 0.72 | 0.88 | 0.16 | 22 | ||
2021-11-08 | 2021-09-30 | 0.78 | 0.96 | 0.18 | 23 | ||
2020-11-04 | 2020-09-30 | 0.94 | 1.12 | 0.18 | 19 | ||
2024-10-28 | 2024-09-30 | 0.34 | 0.13 | -0.21 | 61 | ||
2024-04-29 | 2024-03-31 | 0.28 | 0.05 | -0.23 | 82 |
Know Two Harbors' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Two Harbors is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Two Harbors Investments backward and forwards among themselves. Two Harbors' institutional investor refers to the entity that pools money to purchase Two Harbors' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Norges Bank | 2024-06-30 | 1.2 M | Northern Trust Corp | 2024-06-30 | 1.1 M | Van Eck Associates Corporation | 2024-06-30 | 857.2 K | Bank Of New York Mellon Corp | 2024-06-30 | 796 K | Wolverine Asset Management Llc | 2024-06-30 | 735.2 K | Amundi | 2024-06-30 | 711.9 K | Advisors Asset Management | 2024-06-30 | 689.2 K | Mirae Asset Global Etfs Holdings Ltd. | 2024-06-30 | 680.4 K | Citadel Advisors Llc | 2024-06-30 | 580.6 K | Blackrock Inc | 2024-06-30 | 17.3 M | Vanguard Group Inc | 2024-06-30 | 11.6 M |
Two Harbors' market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 1.23 B.Market Cap |
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Two Harbors' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.02) | (0.01) | |
| Return On Capital Employed | (0.01) | (0.01) | |
| Return On Assets | (0.01) | (0.01) | |
| Return On Equity | (0.07) | (0.07) |
Determining Two Harbors' profitability involves analyzing its financial statements and using various financial metrics to determine if Two Harbors is a good buy. For example, gross profit margin measures Two Harbors' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Two Harbors' profitability and make more informed investment decisions.
Evaluate Two Harbors' management efficiency
Two Harbors Investments has Return on Asset of (0.0307) % which means that on every $100 spent on assets, it lost $0.0307. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of (0.1921) %, meaning that it generated no profit with money invested by stockholders. Two Harbors' management efficiency ratios could be used to measure how well Two Harbors manages its routine affairs as well as how well it operates its assets and liabilities. As of the 10th of November 2024, Return On Tangible Assets is likely to grow to -0.01. In addition to that, Return On Capital Employed is likely to grow to -0.01. At this time, Two Harbors' Total Assets are very stable compared to the past year. As of the 10th of November 2024, Non Current Assets Total is likely to grow to about 12.9 B, while Non Currrent Assets Other are likely to drop (11.9 B).| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 23.03 | 21.88 | |
| Tangible Book Value Per Share | (8.87) | (8.43) | |
| Enterprise Value Over EBITDA | (19.34) | (18.38) | |
| Price Book Value Ratio | 0.60 | 0.78 | |
| Enterprise Value Multiple | (19.34) | (18.38) | |
| Price Fair Value | 0.60 | 0.78 | |
| Enterprise Value | 2.5 B | 2.3 B |
Effective management at Two Harbors has been a driving force behind its market achievements. We assess the correlation between management practices and financial success to determine the stock's value.
Dividend Yield 0.1515 | Forward Dividend Yield 0.1515 | Forward Dividend Rate 1.8 | Beta 1.889 |
Basic technical analysis of Two Stock
As of the 10th of November, Two Harbors has the Coefficient Of Variation of (1,030), variance of 1.68, and Risk Adjusted Performance of (0.07). In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Two Harbors Investments, as well as the relationship between them.Two Harbors' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Two Harbors insiders, such as employees or executives, is commonly permitted as long as it does not rely on Two Harbors' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Two Harbors insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Two Harbors' Outstanding Corporate Bonds
Two Harbors issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Two Harbors Investments uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Two bonds can be classified according to their maturity, which is the date when Two Harbors Investments has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Volcan Compania Minera Corp BondUSP98047AC08 | View | |
| International Game Technology Corp BondUS460599AD57 | View | |
| BNP Paribas FRN Corp BondUSF1R15XK367 | View |
Understand Two Harbors' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Two Harbors' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.07) | |||
| Market Risk Adjusted Performance | (0.19) | |||
| Mean Deviation | 0.9403 | |||
| Coefficient Of Variation | (1,030) | |||
| Standard Deviation | 1.29 | |||
| Variance | 1.68 | |||
| Information Ratio | (0.23) | |||
| Jensen Alpha | (0.24) | |||
| Total Risk Alpha | (0.41) | |||
| Treynor Ratio | (0.20) | |||
| Maximum Drawdown | 8.41 | |||
| Value At Risk | (2.08) | |||
| Potential Upside | 1.42 | |||
| Skewness | (2.01) | |||
| Kurtosis | 8.23 |
| Risk Adjusted Performance | (0.07) | |||
| Market Risk Adjusted Performance | (0.19) | |||
| Mean Deviation | 0.9403 | |||
| Coefficient Of Variation | (1,030) | |||
| Standard Deviation | 1.29 | |||
| Variance | 1.68 | |||
| Information Ratio | (0.23) | |||
| Jensen Alpha | (0.24) | |||
| Total Risk Alpha | (0.41) | |||
| Treynor Ratio | (0.20) | |||
| Maximum Drawdown | 8.41 | |||
| Value At Risk | (2.08) | |||
| Potential Upside | 1.42 | |||
| Skewness | (2.01) | |||
| Kurtosis | 8.23 |
Consider Two Harbors' intraday indicators
Two Harbors intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Two Harbors stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Two Harbors Corporate Filings
10Q | 29th of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 28th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F3 | 26th of September 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
F4 | 16th of August 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
Two Stock media impact
Far too much social signal, news, headlines, and media speculation about Two Harbors that are available to investors today. That information is available publicly through Two media outlets and privately through word of mouth or via Two internal channels. However, regardless of the origin, that massive amount of Two data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Two Harbors news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Two Harbors relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Two Harbors' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Two Harbors alpha.
Two Harbors Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Two Harbors can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Two Harbors Corporate Directors
| Hope Woodhouse | Independent Director | Profile | |
| James Bender | Independent Director | Profile | |
| Edward Abraham | Independent Director | Profile | |
| Karen Hammond | Independent Director | Profile |
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Two Harbors Investments. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Is Mortgage Real Estate Investment Trusts (REITs) space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Two Harbors. If investors know Two will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Two Harbors listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.76) | Dividend Share 1.8 | Earnings Share (4.80) | Revenue Per Share 1.171 | Quarterly Revenue Growth (0.43) |
The market value of Two Harbors Investments is measured differently than its book value, which is the value of Two that is recorded on the company's balance sheet. Investors also form their own opinion of Two Harbors' value that differs from its market value or its book value, called intrinsic value, which is Two Harbors' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Two Harbors' market value can be influenced by many factors that don't directly affect Two Harbors' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Two Harbors' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Two Harbors is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Two Harbors' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.