Maxim Group Sticks to Its Buy Rating for Two Harbors (TWO)


In a report released today, Michael Diana from Maxim Group reiterated a Buy rating on Two Harbors (TWO), with a price target of $15. The company’s shares opened today at $14.04.

Diana observed:

“TWO reported a 4Q18 comprehensive loss of ($1.24) per share, versus its $0.47 dividend, so book value per share was down 11.5%. the decline was attributable to spread-widening in Agency RMBS and about 3% to spread-widening in non-Agency RMBS, in a volatile and difficult quarter for all mortgage REITs. According to management, book value recovered about 4% in January 2019 (excluding accrual of dividends).”

According to TipRanks.com, Diana is a 5-star analyst with an average return of 5.9% and a 58.5% success rate. Diana covers the Financial sector, focusing on stocks such as First Savings Financial Group, Westamerica Bancorporation, and Pennantpark Floating Rate.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Two Harbors with a $15.33 average price target, implying a 9.2% upside from current levels. In a report issued on January 28, Credit Suisse also maintained a Buy rating on the stock with a $14 price target.

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Based on Two Harbors’ latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $35.95 million. In comparison, last year the company had a net profit of $166 million.

Based on the recent corporate insider activity of 13 insiders, corporate insider sentiment is neutral on the stock.

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Two Harbors Investment Corp. is a real estate investment trust, which invests in residential mortgage-backed securities, residential mortgage loans and other financial assets. Its objective is to provide risk-adjusted returns to its stockholders over the long-term, primarily through dividends and secondarily through capital appreciation.